>Six million accidental savers 'created by Covid crisis'
>More than six million people have become "accidental savers" during the pandemic by keeping jobs while facing fewer outgoings, a report has said. While many people have faced greater debts, redundancy, or reduced income during furlough, others have seen their financial position improve. Lower travel costs and fewer holidays or meals out have contributed, financial consultancy LCP found. Longer-term home working could extend the benefits, it suggested.
>Millions of people have seen their finances hit hard by Covid, particularly those already on lower incomes. Pressures of bigger energy and food bills, as well as other costs owing to children remaining at home, and a 20% cut in income while on furlough, have contributed to the squeeze. More than nine million people had to borrow more than they usually would by December, owing to the coronavirus crisis, figures from the Office for National Statistics (ONS) showed.
>However, the LCP report suggests that another six million people have seen their bank balances benefit from fewer outgoings during the restrictions on movement. Many of them could have saved thousands of pounds. Employees who have been able to work from home - often not those in the youngest age groups - have seen commuting and travel costs fall. Those aged over 55 had been most likely to save as a result of holidays being cancelled or not booked, and older people were also most likely to have cut back on eating out, the report said. While some of these issues might only be temporary, the likelihood of a long-term change in the mix of office and home working could see people continue to save on travel costs.
>The report suggested the money saved could be put to good use by cutting existing debts, putting money aside in a rainy day fund for unforeseen emergency bills, or put into longer-term savings pots such as pensions. However, interest rates for savers are low in the current economic climate. Heidi Allan, co-author of the LCP report, said: "Employers will have a key part to play in ensuring that workers take advantage of this opportunity and do not simply allow these increased balances to sit in current accounts and gradually drift away."
>Former pensions minister Steve Webb, a partner at LCP and another author of the report, said: "There are few silver linings from the current crisis, but the emergence of a large group of accidental savers could be one of them. "A concerted effort is needed to use this unexpected opportunity to create more of a savings culture, especially among those who may permanently benefit from reduced outgoings as a result of a switch to greater home working."
https://www.bbc.co.uk/news/business-56210579
How are you handling all the extra money at the end of the month, did you get into investing like everyone else? Have you started using some of the money for other things? Do you have any big plans for your savings?
I've put away a lot of money over the past year for a deposit on a home and made it bigger by investing, in true middle class fashion I've also been giving money to the RSPB because I'll probably take up bird watching one day. It does feel a little surreal still how I just save close to half my income, all those vague notions of enjoying my life have slipped away a bit where I'm comfortable with my biggest spend being the food shopping and I don't even put money away for a holiday.
Made a separate thread because I feel like an arsehole posting in threads about people being out of work or going without.
>money saved could be put to good use by
Just start teaching principles of economics in schools an we wouldn't have to rely on a pandenmic to teach our people how to manage money.
This is like teaching the architectural styles of ancient civilisations in CDT. Just send their parents a letter explaining that their kid will be doing the weekly shop just the once, and let the inevitable shitkicking learn 'em. You can't teach fiscal responsibility in school.
Well right now it's just sitting in my current account, because my ISA only lets me put £200 a month in, but I figure it'll be nice to have some money set aside to do a bit of improvement work on the house I fantasise about one day being able to buy.
Call me cynical, but I've got a bad feeling there will be some bankster politico lobbyist cunt who comes along and goes "Oh, sorry, there's been a mistake. You weren't supposed to have all this extra money, it's awfully bad for the economy having all this money taken out of circulation. It would be irresponsible not to take action to correct this error" and then we all get it stolen by the taxman to prop up failing arms manufacturers.
>>8556 Dishy Rishi has me worried as well, he's apparently ruled out a proper tax raid on Wednesday with band freezes and a delivery tax instead but maybe he would say that. At a minimum Autumn will be a bloodbath to put up upstart aspirational types in our place.
There's other places you can put that money even if you've eaten the ISA. Green bond being announced this week.
>>8556 > "Oh, sorry, there's been a mistake. You weren't supposed to have all this extra money, it's awfully bad for the economy having all this money taken out of circulation. It would be irresponsible not to take action to correct this error"
As long as they give me a couple of weeks notice I'm sure I could reinvest the lot in the very local economic sectors of high class escorts and highly dodgy drug dealers.
>>8561 Oh I'm sure they will have thought of that, and they'll have ya for a lockdown breach. You might find your little uniform roleplay involves a long stay in a hotel with a stern HMRC inspector. All expenses paid (by the end of it).
As for me, I'll buy a third world passport and use all my accrued leave to live like a king abroad for a few months.
>>8562 > As for me, I'll buy a third world passport and use all my accrued leave to live like a king abroad for a few months.
Wrong way round, ladm8. The third world is full of fit lasses who'll pay to marry you and even go like a barn door in the wind until she gets her indefinite leave to remain and tells you right where to go. That takes a few years though, so take full advantage of that until she sods off then you can just fuck off to wherever she comes from on your still valid marriage visa and continue to live out the dream on nothing but $20/day and a tinder gold account. It's basically IDDQD for real life.
On a lighter note I want to photoshop that poster for britfa. We know you're ALL up to something: Bad grammar, climate denial, shitposting outside of IQ, voting Tory, being a septic....". I'll even let the mods use it as the logo in their private wanking shed top sekret mod board club.
We have a couple, they're just not your average internet reactionary right wingers. They seem to simply be lads with loads of money who rightly know which side their bread is buttered; much like how as an NHS worker, voting Labour is always going to be in my interest almost regardless of my political views.
>>8551 >Six million accidental savers 'created by Covid crisis
Oy vey, but at what cost? Everyone of those savers is a banker in debt, that money is soaked in the blood of innocent hedge fund managers.
