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

[chrcoluk]

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.

Yes the UK isnt mostly full of rich people, it has a big gap between the wealthiest and the poor and even quite a big gap between the upper middle class and working class, I know so many who live from pay day to pay day.

Its this bad with cheap credit, think what it will be like when it becomes expensive to borrow. Complete carnage.

Not only that most businesses borrow routinely.

 

[One More Solo]

My boss must easily be on £60,000+ a year and her husband has a very high paying job of around the same figure.
A month ago she came in moaning that she needed a £1000 job on her car but they hadn't got the money to fix it
You have to wonder how some people live.

For most people their outgoings scale with their salary though. We have savings but live pay check to pay check now (relatively) since moving to a new house which has nearly doubled our mortgage. This meant we had to get much better at budgeting and saving vs our previous lifestyle. If we’d just carried on as before we’d be a bit stuffed in the same situation.

Doesn’t help that our necessary outgoings are probably £250 more than we originally budgeted for, but that’s the same for everyone.

 

[El Jimben]

When he says 'most people', he clearly is only referring to Lloyds customers, there are plenty of other banks so it's hardly indicative.

 

[malachi]

When he says 'most people', he clearly is only referring to Lloyds customers, there are plenty of other banks so it's hardly indicative.

Yeah but with the way the UK is going at the moment you can see its more people who don't have that savings compared to people that do.

Rising energy bills, inflation and lack of payrise are kicking people down.

 

[McBain]

I wish I had £500 savings.

 

[Malevolence]

When he says 'most people', he clearly is only referring to Lloyds customers, there are plenty of other banks so it's hardly indicative.

True, but given the fact that Lloyds is one of the major banks in this country, I imagine the figures will probably be consistent across all the other major banks and their subsidiaries too.

 

[233]

define savings,
i have a whopping 39p in my savings account,
but i keep a credit card with a few k available as an emergency fund and have a few quid tucked away in stocks and shares.

 

[Freefaller]

I'm quite thorough when it comes to managing my money. It'll come as no surprise being a techy forum that an Excel workbook is my preferred method. A worksheet for each month with the EOM balance carried forward to the next month etc, all the monthly fixed direct debits entered and any large one-off payments scheduled for that particular month (house insurance, car insurance etc). It works for me and I actually enjoy it plus I feel in control and never in doubt regarding my finances. It's a good habit to get in to.

I used to do that too. I now use a money management tool now which connects to my bank accounts, mortgages, savings and even retirement pots to give me a portfolio. It track my monthly ingoing and outgoing, identifies rends, set budgets with notifications of overspend and project/holiday planning etc... It's bliss. The only work I need to do on it is manage forecasts if situations change or tweak budgets accordingly to set more savings etc....

 

[Jimbeam3678]

I used to do that too. I now use a money management tool now which connects to my bank accounts, mortgages, savings and even retirement pots to give me a portfolio. It track my monthly ingoing and outgoing, identifies rends, set budgets with notifications of overspend and project/holiday planning etc... It's bliss. The only work I need to do on it is manage forecasts if situations change or tweak budgets accordingly to set more savings etc....

I tired one of those tools years ago. Have they got any better? Which one are you using ?

 

[Freefaller]

My boss must easily be on £60,000+ a year and her husband has a very high paying job of around the same figure.
A month ago she came in moaning that she needed a £1000 job on her car but they hadn't got the money to fix it
You have to wonder how some people live.

People who earn double that still have the same conversations. The more you earn the more you're likely to spend without necessarily taking care of debts first. Things like credit cards and so on can get out of control quickly if you don't keep on top of them.

 

[Freefaller]

I tired one of those tools years ago. Have they got any better? Which one are you using ?

I use moneyhub, I find it really useful and means I don't have to consolidate my accounts every month meaning less time in front of the computer. I try not to use my pc during the weekend or after I finish work. Time back is gold dust to me so I can spend more time with my kids. Heck even this message has been voice typed so that I can cook breakfast!

I would post screenshots but since the data is sensitive I'd rather not!

 

[Efour]

Peasants

 

[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

 

[Mekrel]

I have to admit, I think I could really be making my money work harder at the moment. I have £30k sat in a Chase 1.5% account which as someone pointed out either in this thread or a similar one, that money is worth less when inflation is higher than that.

For those with stock and shares either in ISAs or Vanguard accounts, how have they performed so far in 2022? I know markets aren't doing great as my pension has lost value since Jan 2022.

 

[LOAM]

We've a couple of grand liquid and then shoveling every surplus penny into getting rid of the mortgage.

 

[Minibiker]

Does anybody use any of these apps like Plum etc to save money everytime they use their cards in shops... Been thinking of doing it myself to help save abit extra

 

[413x]

When he says 'most people', he clearly is only referring to Lloyds customers, there are plenty of other banks so it's hardly indicative.

Lloyd's banking group is massive.
It's perfectly reasonable to extrapolate.

It's far far more reliable than even good surveys. The sample size is huge.

 

[413x]

I have to admit, I think I could really be making my money work harder at the moment. I have £30k sat in a Chase 1.5% account which as someone pointed out either in this thread or a similar one, that money is worth less when inflation is higher than that.

For those with stock and shares either in ISAs or Vanguard accounts, how have they performed so far in 2022? I know markets aren't doing great as my pension has lost value since Jan 2022.

Agreed.
I'm thinking of scrapping investing and just paying off the mortgage.

Only takes a bit of a downturn to wipe out any savings (ie now) and it's very tangible putting it into mortgage

 

[413x]

I have to admit, I think I could really be making my money work harder at the moment. I have £30k sat in a Chase 1.5% account which as someone pointed out either in this thread or a similar one, that money is worth less when inflation is higher than that.

For those with stock and shares either in ISAs or Vanguard accounts, how have they performed so far in 2022? I know markets aren't doing great as my pension has lost value since Jan 2022.

My stocks are down significantly in last 12 months. So much so I think going forward I'll just pay off the mortgage.

 

[Freefaller]

Yes but the stocks and shares and pensions lifecycles are a long game. However everyone has different priorities. If you can afford to save AND overpay your mortgage then it really is win win I'd have thought.