"Most only have £500 of savings ",says Lloyds boss ,really ?

[moon man]

BBC link
This seems ridiculously low tbh .are things really this bad ? i follow nearly new cars in my old Skoda ,see queues at airports for foreign holidays ,surely they have more buffer money than this ?

The head of the UK's biggest high street bank told the BBC: "80% of individuals and UK customers and families have less than £500 pounds worth of savings in their current account and their savings account.

 

[moon man]

I would feel very vulnerable with a small buffer like that ,then again when i had 6 months on sick i couldnt get any top up benefits as i had excess savings ,maybe its the way to do things ,fall back on the benefits

 

[moon man]

Why would you not be using your money profitably? Surely you put your savings money into investments or your pension or your children's pensions? If you need money beyond your float money then you can sell off your investments.

I do isa and pension but pretty shocked that the amount is so pitiful ,isn't being able to survive 6 months without income a good starting point ?

 

[moon man]

Ask someone on minimum wage who is facing fuel costs of £2 a litre to get to work, their food shop going up 20% and a £3000 plus yearly energy bill how much they can save a month...

Ask myself then ,I'm on £10.50 HR work in Padstow,quite a drive .my boiler uses heating oil
Still nowhere near £500

 

[moon man]

How much is your rent or mortgage?
Oh yes, you paid it off...

That's because of prudent financial planning and not buying trinkets

 

[moon man]

And do you have any children? Many people do, and I feel for them, as things are a struggle for us as a child-free household.

Grown up ,at the time we got tax credits,that was a massive help but we frantically overpaid the mortgage ,kept 1 car for 18 yrs ,lots of holidays but in a seasonal pitch that was £500 a year.ect ect ect

 

[moon man]

How old are you moon man?

Is this a trick question? In my 50s but can never pass the challenge 25 in supermarkets, honest

 

[moon man]

Ah so your wealth was tax payer funded. You're welcome.

Thanks it was a pleasure

 

[moon man]

To be honest buying stuff has been most profitable for me.

In the last 12 months best to worst
-House. Ridiculous but unrealisable gains
-Stuff. It's holding its value or increasing. Many things I've bought and kept new have increased in value
-Cash. Errorded away by inflation.
-Investments. All my investments are down significantly. So with inflation and the lost this has been the worst for me

If I'd invested nothing in last 12 months I'd be a lot better off now.

Pretty much the ,same my 20yr old Skoda does all it needs to do looks better nic than some 5 yr old cars private plate and cost £750
If I need something I will buy it ,phone afew months back £300 opp find pro x2 ,amazing but couldn't part with over 1 k for one tbh

 

[moon man]

Tbf as pointed out as I only work 30 hrs at low wages I would be shafted if I had rent or a mortgage but it's not by accident I am in this position (on a rock in Polzeath)

 

[moon man]

Got to have an emergency fund of at least 6 months living expenses. I was unemployed for 6 months recently, would have been in trouble if caught unprepared.

Yes when I lost my job it took them 12 months to pay out the 2 weeks I was off ,non income based not sure if it's still the same but treat you like crap and make you jump through hoops for peanuts

 

[moon man]

But it's not 100% from your hard work and crafty decision making either. What you did over your 10-20 years is not really achievable for someone in a similar position now. Plus, the contentious issue of saying people should move hundreds of miles to achieve their goals. Some have local family or similar where it's much less of an option to just up and move where it's cheaper/nicer.

Not sure ,my neice has just picked up a very nice detached for 200k (full on rural Yorkshire)first time buyer needs lots of work but that's what we did twice,tbf they lived with parents for a long time so I guess that's a big financial contribution

 

[moon man]

mmmm so people cant save £1.37 a day over a year ,the smoking bucket is surrounded by people at work who spend a tenner plus ? on a packet of smokes (this comment is aimed in general not any poster in particular)

 

[moon man]

tbf i only look at the account balance when i have been paid, if its less than the last time i was paid i ask why ,usually because of monthly direct debits being close together and i am paid weekly

 

[moon man]

This lack of liquidity is exactly why people cant handle any negative financial deviations ,80 percent covers more than just those in relative poverty its people taking pcp on cars that wont even fit down cornish lanes or holidays dumped on the credit card
No one can have this level of certainty that things wont go wrong ,its foolish and asking for trouble

 

[moon man]

I am definitely down on my Vanguard but I swapped the bonds part of my portfolio for FTSE index it was actually the right decision especially as it pays a 4 percent yeild ,

 

[moon man]

The nearly new cars and holidays are why some are skint maybe ,but I still find £500 to be unbelievable

 

[moon man]

Surely no matter your circumstances... Becoming mortgage free must make you feel wealthy?

I guess some people have small. Mortgages throughout.

I remember zooplaing my parents first house. My mortgage must have been 4x more than mine at the least. It could have been 6x more depending on thier deposit!

I guess if you have that low a mortgage it. Won't make you feel rich paying it off.

My mortgage was 44 k 2003 but frantic overpayment meant £1200 some months,did it in 9 years ,profit meant I got this for cash ,boom
Psychologically it's a great feeling as well as financially ,I bought a then top of the range Panasonic plasma with my first free month and it's still my only tv

 

[moon man]

Are you saying you over paid by £1200 (over and above the normal mortgage payment) or that this is what you paid some months for the mortgage?

some months if things were going ok also a small redundancy payment 2007 of 6k ish but that was mostly 3 months in lieu ,luckily nationwide had no penalties for overpayment