42.3% of Londoners have less than £100 in savings

[subbytna]

6 months salary saved up is a fairytale for me. Not a chance with twin babies and high rent costs. I'm happy if I have any money in my account the time payday comes around (i.e. I've not dipped into my £100 overdraft) I don't know how others can afford to save. No Sky, don't smoke, rarely drink....still skint. Welcome to Northern Ireland living.

(pc in sig was made up from gifts and presents over the years)

 

[Alex_6n2]

This is why people have no money and also get into debt. Very few people choose saving as a priority in their life. They think only about now and not tomorrow. They expect instant gratification and buy whatever they want on the never never with a credit card. The last time I owned a credit card was over 30 years ago. I only ever use my debit card. If I don't have the money, I don't buy it.

And yet, as credit is so cheap, you can travel the world and develop yourself as a person whilst you're still young. Making the most of the years where you have energy. That is thinking about tomorrow, but living for today.

I'm not saying travel the world and build a debt so large it will cripple you, because that would be stupid. But in my opinion sitting at home saving up and "doing it later" isn't any cheaper than doing it now with cheap credit. And the reality is if you wait till later, it will probably never happen due to commitments (Marriage/Kids/etc).

The older generation seem to have a mind-set that credit is bad, which is understandable because you lived through 16% interest rates, however used wisely credit is not the devil at the moment.

As I said, it's all subjective. If you're smart and manage your finances intelligently, there's nothing wrong with getting out and seeing what the world has to offer on credit. Doing so presented me with so many opportunities that their benefits have outweighed the cost of realising them in the first place.

 

[UTmaniac]

You got a nice PC though.

Thanks, Black Friday super 8pack bundle last year, £630 iirc, plus monitor ~£400.

Until that upgrade, I was running a 2008 Q9300, 8gb ddr2 and r7 265. I resisted temptation for ~2 years, missus began working and then that offer was too good to miss!

10 year old wheel dying though now, will be costly to replace.

Edit: R9 390 bought last summer for ~£250, mx100 was bought for old system in 2014 for ~£100 and made a massive difference.

 

[Things change I've changed]

Whats always amazing about peoples savings is that its almost entirely unrelated to salary. Its like the benefits argument. Some people will live well on them and never get into debt whilst others are pennyless within days of getting money in their account.

Its all about how much you spend and whether you feel saving are more important than having a bigger house/flat, a better car or more holidays etc.

There are plenty of people on silly money who still manage to be in debt.

/\

THIS.

I know a lot of people that earn ridiculous amounts of money and are in debt or say they can't afford certain things, and some 'poor people' (myself included) that save a small amount that adds up to a lot over time, it's all down to mental attitude and will power, I think with a lot of people they just don't have the patience to save, or even see the value in it.

I earn under 12k a year, live in a flat, have all the regular bills, I have most gadgets I want, and I have a good few grand in savings, I am pretty happy on a low income, it can be challenging at times but at the same time it can be very rewarding when you finally get what you want and you have a greater appreciation for it.

I haggle a lot, I also keep a close eye on the second hand market, when it comes to Hi-Fi you can grab some silly bargains, also know when to sell or trade in items at the right time, for example, I just traded in my PS4 to Game, they only wanted to give me £89 for it!, in the end I managed to get £151 in store credit and a few quid on my reward card by getting them to price match CEX voucher trade-in price, that is a good down payment on the PS4 Pro when it comes out in November!

 

[Faustus]

The thing is, they didn't come up with that way of thinking on their own, it was actively taught to them by 'society' ie: Banks wanting to lend as much as they could, big business advertising all their tat as essential to life etc etc

The level of consumerism we have experienced was intentionally created and that generation were brought up being taught it from an early age.

Your reply implies that people are unable to think for themselves though doesn't it? I'm not saying a lot of what you wrote is untrue but just because you go to an 'all you can eat' buffet doesn't mean you have to 'pig out'.

There's also another statistic - 48% of personal debt in the UK is owed by people under 34 years old. If that demographic don't get a grip on their finances and quickly they are facing a very bleak old age.

 

[Phate]

Have you considered the possibility that she gets pleasure from saving her money?

I did consider this. But when she saves a bit more she gets bit of "relief" from it as in a "phew" moment. Imagine if you had nothing saved and were then able to gradually save up to saaay 1 grand. And it took you 6 months due to a bad income and high outgoings that couldn't be changed. That would be a relief from having a bit of savings.

She gets this every time she tops it up and starts panicking if she cannot maximize that top up each month. It is obsessive.

When I bought a TV years ago she came over (with her kindle) and said "yeah it's nice but I don't see the point when that's £600 less in your bank account"

Don't get me wrong, shes a nice person. But her view on money and savings is somewhat extreme and obscure.

 

[Faustus]

I did consider this. But when she saves a bit more she gets bit of "relief" from it as in a "phew" moment. Imagine if you had nothing saved and were then able to gradually save up to saaay 1 grand. And it took you 6 months due to a bad income and high outgoings that couldn't be changed. That would be a relief from having a bit of savings.

She gets this every time she tops it up and starts panicking if she cannot maximize that top up each month. It is obsessive.

When I bought a TV years ago she came over (with her kindle) and said "yeah it's nice but I don't see the point when that's £600 less in your bank account"

Don't get me wrong, shes a nice person. But her view on money and savings is somewhat extreme and obscure.

The reason for me asking the question in the first place is because I used to know someone like that myself - a chap. I asked him why he saved and said that when he was gone his kids would probable spend the lot.

His reply was genuine - 'if they get as much pleasure from spending it as I have done from saving it then I won't mind'. He derived pleasure from total financial security and having now reached his age myself I can see what he meant.

 

[platypus]

Lol what? There's never a bad time to save money. Have you not heard the saying 'look after the pennies and the pounds will take care of themselves'...

Unfortunately the younger generations are not taught financial sense.

That isn't to say that the older generations where either; but its the older/baby boomer generations that have extracted the available wealth, and continue to do so, from the system, and routinely take the advantages they had away from the people following them.

Aside from our savings and investments, we have a years worth of mortgage payments that will cover an interest rate rise to 10% tucked away in an emergency fund, and anything less for us I would be consider a bad position to be in.

It annoys me that there are so many irresponsible people about, because the ones who do get punished are the responsible savers, not the people that do splash out on credit and have no intention (or ability) to pay them off. But I don't blame them. I blame the older generations and the systems in place that force it or encourage it.

 

[Buffman]

/\

THIS.

I know a lot of people that earn ridiculous amounts of money and are in debt or say they can't afford certain things, and some 'poor people' (myself included) that save a small amount that adds up to a lot over time, it's all down to mental attitude and will power, I think with a lot of people they just don't have the patience to save, or even see the value in it.

I earn under 12k a year, live in a flat, have all the regular bills, I have most gadgets I want, and I have a good few grand in savings, I am pretty happy on a low income, it can be challenging at times but at the same time it can be very rewarding when you finally get what you want and you have a greater appreciation for it.

I haggle a lot, I also keep a close eye on the second hand market, when it comes to Hi-Fi you can grab some silly bargains, also know when to sell or trade in items at the right time, for example, I just traded in my PS4 to Game, they only wanted to give me £89 for it!, in the end I managed to get £151 in store credit and a few quid on my reward card by getting them to price match CEX voucher trade-in price, that is a good down payment on the PS4 Pro when it comes out in November!

I agree with you to an extent (I always save money where possible) , but isn't 12k less than minimum wage at 40hrs /week? Could you not get a higher paying job?

 

[platypus]

There's also another statistic - 48% of personal debt in the UK is owed by people under 34 years old. If that demographic don't get a grip on their finances and quickly they are facing a very bleak old age.

We all are, because who do you think is going to pay for it?

Ok granted the NHS won't exist anymore, but the welfare state will still be paying for it.

 

[Threepwood]

News just in, we have a reply from the Brexiteers Head Quarters...

What's that Sir Nigel? Just send that 42.3% back? Problem solved?

Yes, very good joke.

Oh?

You're not joking?

I see.

 

[Faustus]

We all are, because who do you think is going to pay for it?

Ok granted the NHS won't exist anymore, but the welfare state will still be paying for it.

Well I won't as I doubt I will be around by then.

 

[Things change I've changed]

I agree with you to an extent (I always save money where possible) , but isn't 12k less than minimum wage at 40hrs /week? Could you not get a higher paying job?

I don't work 40 hours a week , my current job is pretty flexible with hours and I value my free time much more than a value money so it's a worth while trade off for me

 

[Faustus]

Unfortunately the younger generations are not taught financial sense.

That isn't to say that the older generations where either; but its the older/baby boomer generations that have extracted the available wealth, and continue to do so, from the system, and routinely take the advantages they had away from the people following them.

Aside from our savings and investments, we have a years worth of mortgage payments that will cover an interest rate rise to 10% tucked away in an emergency fund, and anything less for us I would be consider a bad position to be in.

It annoys me that there are so many irresponsible people about, because the ones who do get punished are the responsible savers, not the people that do splash out on credit and have no intention (or ability) to pay them off. But I don't blame them. I blame the older generations and the systems in place that force it or encourage it.

What advantages would those be, self reliance and sheer hard graft? When I started work my wage was less than £4.00 per week I had to pay my parents board out of that. Try buying the latest must have gadgets or saving to buy a house out of that.

I saw a news item only last night about mental health issues among the young having spiralled. My own view is that todays youngster haven't got the resilience of previous generations. They are cosseted by their parents (something we never had) and taught at school that they can have everything and to follow their dreams. Goodness only knows how they would cope with what our grandparents had to cope with e.g. wartime, the blitz, rationing etc.

It all sounds great when you are told these things but life isn't like that.

 

[platypus]

What advantages would those be, self reliance and sheer hard graft? When I started work my wage was less than £4.00 per week I had to pay my parents board out of that. Try buying the latest must have gadgets or saving to buy a house out of that.

What advantages? Lets start with right to buy, cheap houses, good pensions, free university education, an nhs not overburdened.

Are you seriously implying that the baby boomer generation has self-reliance and sheer hard graft compared to the younger generations?

 

[Scam]

Yeah. It's all in our head and we're just lazy, bad at saving and expect everything on a plate

 

[Freakbro]

Your reply implies that people are unable to think for themselves though doesn't it?

Not at all, just that everyone growing up is influenced by their environment, to greater and lesser extents, but all substantially.

I'm not saying a lot of what you wrote is untrue but just because you go to an 'all you can eat' buffet doesn't mean you have to 'pig out'.

Absolutely, that's why the title is 42.3% of Londoners... and not 100% of Londoners.

What advantages? Lets start with right to buy, cheap houses, good pensions, free university education, an nhs not overburdened.

Are you seriously implying that the baby boomer generation has self-reliance and sheer hard graft compared to the younger generations?

Yeah. It's all in our head and we're just lazy, bad at saving and expect everything on a plate

Yea, the younger generation have got it a lot tougher financially then my generation, and that report highlights it starkly.

But, I still know mid twenty year old couples who are buying their homes together, so it's not everyone. Though of course Lincolnshire is still a lot "cheaper" than many other areas of the country, especially down south where I can see it must be pretty impossible in places without family help.

 

[fez]

here's also another statistic - 48% of personal debt in the UK is owed by people under 34 years old. If that demographic don't get a grip on their finances and quickly they are facing a very bleak old age.

Is that at all surprising? What age do people usually buy their first house? At what point do you always owe the most on a mortgage? What is by far the largest debt that most people have.

The biggest outlays in most peoples monthly budget is accommodation and related expenses. In general, the older you get the more you earn, the less you spend on frivolous things and the less your mortgage costs. If I was given the amount we are spending on our mortgage and doing up our flat I would have an extra £700/month roughly. I would soon rack up some savings with that.

Debt has always resided mainly with the young. They have the least money and the highest income to spend ratio.

 

[Slam62]

The cost of buying or renting needs to half.

 

[joeyjojo]

I agree with you to an extent (I always save money where possible) , but isn't 12k less than minimum wage at 40hrs /week? Could you not get a higher paying job?

50 weeks of 37.5 hrs * £7.20 = £13,500. After tax and NI that's £12,347.20.

Edit: I'm getting confused about holidays and pay but this gives you a rough idea