Savings & Investments Attitude

[Tommy G]

Having seen on the news that so many million people in the UK have no savings at all and the average family has unsecured debt of almost £10,000 is saving and investments something that is dying out?

 

I can see why people may be discouraged to save a lot at the minute as interest rates are so poor, and would probably rather over pay their mortage.

 

Just wondering what peoples attitudes are on here? Without posting figures I save a regular amount each month into a savings account which I dont ever plan to touch, then the rest of my savings go towards a new car / holiday /house improvements or overpaying the mortgage. 

 

Unsecured debts are only on a one month basis as I pay credit card off in full. 

 

I also think there has been a big swing in the attitude of keeping up with the Jones' rather than actually considering how to spend your salary, particularly I notice that with people in my age bracket 25-30

 

 

[davieG]

Credit allows people to have what they desire 'now' rather than waiting until they have the cash to pay for it and there is a lot of social / peer pressure to have 'it all'.

 

 

The cashless society makes it more difficult to see what you haven't got getting a 'card'  out to pay hides the fact that your wallet is actually empty, you get an illusion of being cash rich.

 

That said like you I've always tried to live within my means and save when I can and use a credit card as a convenience not a loan but it means going without or waiting until you can afford it.

[Fox92]

I have savings. Proud of it too because, without posting anything, I'm in a better position that most people my age. When I first hit 16/17, I didn't buy anything big and it all saved up from my time working. I was then in a position where I could buy, for example, my own car and insurance when I passed my driving test (as I did). Friends do call me "tight", but I disagree and I just know I'm not an idiot with my money.

 

Again, I agree with the above post about credit cards. I don't particularly like paying on credit cards myself. I'd rather choose to have cash in hand when buying something because I've always felt having a card is like "virtual money". Like sometimes it makes you think you have more than you do.

[StanSP]

Having seen on the news that so many million people in the UK have no savings at all and the average family has unsecured debt of almost £10,000 is saving and investments something that is dying out?

 

I can see why people may be discouraged to save a lot at the minute as interest rates are so poor, and would probably rather over pay their mortage.

 

Just wondering what peoples attitudes are on here? Without posting figures I save a regular amount each month into a savings account which I dont ever plan to touch, then the rest of my savings go towards a new car / holiday /house improvements or overpaying the mortgage. 

 

Unsecured debts are only on a one month basis as I pay credit card off in full. 

 

I also think there has been a big swing in the attitude of keeping up with the Jones' rather than actually considering how to spend your salary, particularly I notice that with people in my age bracket 25-30

 

I save a decent amount from my salary as I live at home at the moment (still contribute to household etc). I use some of that for regular spend during the month (football, going out, shopping etc) or save towards a holiday.

 

Then with the rest of the savings each month I stick towards ISAs each year or add to previous ISAs. Will use that to contribute to buying a house. 

 

I don't have a credit card cos I simply don't see it as advantageous to me right now. 

[Julian Joachim Jr Shabadoo]

I have my current account, another current account which is strictly for stuff I'm saving up for within a year or two and my ISA. It should have more in it than it does but it'll cover if the boiler blows up. No debts (beside 28 years of mortgage repayments left) and nothing on finance.

Don't understand the sheer amount of people who don't plan anything and buy everything on finance with zero savings, you're setting yourself up for a massive headache

[Tommy G]

I was a big saver between 18 to earlier this year when we bought our first house, obviously with a mortgage now its much harder to save at the same rate.

 

Saying that its ridiculous to get on the property market now, we have a mortage of over £700pm and we put a substantial deposit down, its the stamp duty and solicitor fees that are the painful bit. My advice kids is save your nuts off as it will be much easier when it comes to buying a house. Not just the bricks either its furnishing the place

[Guest MattP]

Never saved a penny of anything and never really intended too either, wish I made a few investments in property and other valuables when I had a lot of disposable cash but why pay a deposit on a house when you can have a month travelling with your mates was the attitude I always took. Then again I never understood people who wanted to settle down to the 9-5 life in a cosy house in their early 20's anyway. You can do all that nonsense when you too old to do the fun parts.

 

All in all probably a bad move now given I earn far less than I used to but I also don't regret it, you can't put a price on memories and you only live once.

 

Reason why I never fitted in with any other accountants I worked with, they are generally the tightest bastards on the earth and I can't stand people like that.

[Matt]

I save quite alot, the day I started work at 16 I started saving for my future and retirement, might seem abit 'sad' and 'boring' but I've still enjoyed my life so far, if i've wanted something I worked for it and got it, this attitude hasn't stopped me getting anything, and I has never stopped me going out or doing anything.

 

I'm no-where near as 'tight' (Infact I wouldn't even consider myself tight) as many people I know, who havn't gone out or not done things because they are saving, yet I would hazard a guess that aren't aswell off/havn't saved as much as me - that's not gloating or pointing and laughing just something I don't understand, however they do what they want, it's their life and if they're happy good for them!

 

I wouldn't say i'm rich thanks to this attitude but i'm doing ok, I know I could be hit by a bus tomorrow but it's the risk i'll take for having a good life in the future and as I get older, besides like I said this attitude hasn't stopped me doing things, going out and getting things I want.

 

I have never been in debt and I never plan to be (You cannot gaurentee that, but i've done well so far), the only debt I plan to have is something I consider 'good' debt in a house.

 

One regret I do have is not buying a house at the age of about 18, where I could still live at home and rent the house out, I am pretty sure I could have done it and tbh I still consider doing it now. It may have set me back quite alot at 18 but i'd have been set up now very nicely.

 

The simple attitude I have is can I afford something? If the answers no, work more, work harder.

 

It's why i've never understood things like Uni (No I do not want to get in that arguement again - saying that i've not had one for a while), i'm under the impression in other countries people work get themselves set up abit then go Uni, might still be abit in debt, but certainly not as much as people are here, start work in thousands of pounds of debt before they've even started, but, it's not my problem, I just don't understand it for an example.

[Finnegan]

I have no savings and aabout 3.5k of debt I'll be paying off til 2017.

[leicsmac]

I was a big saver between 18 to earlier this year when we bought our first house, obviously with a mortgage now its much harder to save at the same rate.

 

Saying that its ridiculous to get on the property market now, we have a mortage of over £700pm and we put a substantial deposit down, its the stamp duty and solicitor fees that are the painful bit. My advice kids is save your nuts off as it will be much easier when it comes to buying a house. Not just the bricks either its furnishing the place

 

This. As a single guy (which I will be when back in the UK) even with a good entry-level grad job I'd find it difficult to get a mortgage for a house practically anywhere. First time buyers (unless you're in a relationship and are seriously willing to commit) are getting shafted. 

 

Perhaps one day the market may actually reset itself and form a more realistic correlation with salaries?

 

Mind you, there's a lot of people who have bought into the idea of getting a mortgage for their houses (and taking on unnecessary debt while doing so) because it's then their "castle", so to speak. Very different attitude to other places.

 

As to the general topic, saving is a good thing but it's best to do so if you have a particular objective in mind - saving for its own sake and as such foregoing on enjoyment now seems odd when you have no idea about what's round the corner. Balance is the key.

[leicsmac]

Never saved a penny of anything and never really intended too either, wish I made a few investments in property and other valuables when I had a lot of disposable cash but why pay a deposit on a house when you can have a month travelling with your mates was the attitude I always took. Then again I never understood people who wanted to settle down to the 9-5 life in a cosy house in their early 20's anyway. You can do all that nonsense when you too old to do the fun parts.

 

All in all probably a bad move now given I earn far less than I used to but I also don't regret it, you can't put a price on memories and you only live once.

 

Reason why I never fitted in with any other accountants I worked with, they are generally the tightest bastards on the earth and I can't stand people like that.

 

Spot on. I guess some people like that, but for me life should be about the enjoyment while you can because, as you say, you only live once and being young enough and mobile enough for that enjoyment doesn't last forever.

[VLC86]

While the figures are bad I would imagine low interest rates affect this. Why put your money in a savings account on 1.5% when you could put down a deposit on a house and see it grow at about 4/5% a year.

Also factor in that people might have these unsecured debt to further their careers, I know someone who got into a fair amount of debt to train to be an airline pilot, that is possibly today's equivalent of an investment and certainly will get a better return.

Finally, on actual investments, many high street banks removed and retrained investment advisors due to more stringent regulation and mystery shops therefore now it is actually impossible to make certain investments they werr deemed acceptable before.

Plus, I have lost count if the times I have heard people say 'I don't need a credit card and I'm saving for a house' what data do you think banks look at to see who they will lend money and at what rate?

[MooseBreath]

I'm very much in the experience over savings camp too but, I do find that if you drop a percentage of your income straight into savings then you never really notice it's gone. Forgoing essentially pointless material luxury also helps a lot.

I've got three savings accounts which I contribute to monthly, one for travel, one for motoring, and the other is to cover me for the time between being made redundant and finding a new job.

I've then got a stocks and shares ISA which is invested in a mostly passive global index tracking portfolio. That gets contributed to monthly as well. This is the money that I hope one day will allow me to start winding down on work a bit before my official retirement.

Then I have a SIPP which I use to bring together all my old work pensions, and finally I have a current employer pension.

Added all together and removing the money I spend on travel and motoring, I'm probably saving about 35%-40% of my income.

[Sir Fynwy]

Just checked the last shares I bought and they are 38% up in value since I bought them in July 2013, jump on the right companies at the right time and you don't need to worry about bank interest rates.

[purpleronnie]

Always saved, never took risks in the stock market either, my mum and day did and lost quite a lot, thankfully they have recovered it since, I'm quite happy earning 3%

[leicsmac]

Just checked the last shares I bought and they are 38% up in value since I bought them in July 2013, jump on the right companies at the right time and you don't need to worry about bank interest rates.

 

Tricky game though.

 

"No one knows if share prices are going to go up, down, or fvcking sideways, least of all stockbrokers."

[Vlad the Fox]

Spot on. I guess some people like that, but for me life should be about the enjoyment while you can because, as you say, you only live once and being young enough and mobile enough for that enjoyment doesn't last forever.

 

 

This is true. My dad told me about someone he once knew who was saving everything, never going out or on holiday just save, save, save. His plan, or as he said to my dad 'i'll do all that when i retire,' obviously early retirement was his goal. Needless to say when he did retire he didn't have the urge or will to do all the things his mates had done years before and sits out his retirement wishing he had lived a little more.

 

And the moral of that story is that your youth and living it is far more valuable than any monetary value. The memories will live and warm you for life. 

[Sir Fynwy]

Tricky game though.

"No one knows if share prices are going to go up, down, or fvcking sideways, least of all stockbrokers."

It requires plenty of knowledge of the market, decent contacts and a lot of detachment, or a massive load of luck. I don't think I've been lucky this time but I do wish I'd bought more shares, profit was never in doubt.

The best bit is the shares are in a brewery and I've also saved 20% on all beer I've bought from them since investing.

[Guest MattP]

Tricky game though.

"No one knows if share prices are going to go up, down, or fvcking sideways, least of all stockbrokers."

'Beats chest' duh dun duh dun duh dun duh duh.

[leicsmac]

'Beats chest' duh dun duh dun duh dun duh duh.

 

Oh go on then. 

 

 

Such a fantastic explanation of how much a bunch of crooks most of the brokers on WS are.

[VLC86]

It requires plenty of knowledge of the market, decent contacts and a lot of detachment, or a massive load of luck. I don't think I've been lucky this time but I do wish I'd bought more shares, profit was never in doubt.

The best bit is the shares are in a brewery and I've also saved 20% on all beer I've bought from them since investing.

Brew dog?

[Tincy]

No savings at all, can't take them with you is my attitude, live each day as your last.

[ADK]

I think it's worth having a bit of contingency, beyond that I wouldn't lower my standard of living to save money.

[Ric Flair]

I have rinsed so much dough over the years it's pretty obscene. The most i've ever been in debt is about £15,000 which I paid off when one of my grandparents snuffed it. I vowed to be better with money and on the whole I am now as i've quit gambling 14 months ago but i'm still not great with money. Price you pay for being a complete cretin and not very clever, then i'd earn more money and be sensible and pass my Accountancy exams.

 

Since moving back to Leicestershire I have more money than I did in London so can start to add to my savings. I managed to build up a modest pot to buy the house I've just bought, but again i've been given a fair amount of money over the years and managed to waste most of it so I know i'm not out of the woods yet.

[Ric Flair]

I'm very much in the experience over savings camp too but, I do find that if you drop a percentage of your income straight into savings then you never really notice it's gone. Forgoing essentially pointless material luxury also helps a lot.

I've got three savings accounts which I contribute to monthly, one for travel, one for motoring, and the other is to cover me for the time between being made redundant and finding a new job.

I've then got a stocks and shares ISA which is invested in a mostly passive global index tracking portfolio. That gets contributed to monthly as well. This is the money that I hope one day will allow me to start winding down on work a bit before my official retirement.

Then I have a SIPP which I use to bring together all my old work pensions, and finally I have a current employer pension.

Added all together and removing the money I spend on travel and motoring, I'm probably saving about 35%-40% of my income.

 

That's very nice to be in a position where you can save 40% of your income and still live a comfortable life. Well done