UK households are facing an unprecedented financial squeeze as soaring costs leave many struggling to make ends meet. The average person in the UK has a measly £16,067 in savings, with nearly 40% having less than £1,000 and a staggering 23% having nothing at all.
Middle-class professionals like Andrew, a writer from Essex who earns around £30,000 a year, are feeling the pinch. Despite his respectable income, he's been forced to stop saving for emergencies and pensions due to "paycheck to paycheck" living expenses that total over £2,800 per month. His only savings are £4,000 in a stock market account, which would vanish quickly if his household income were to cease.
Others, like Ryan from Glasgow who earns the same annual amount, have been left with nothing – literally. "I've saved exactly £0," he admits. Without a safety net, Ryan lives life on credit, with some months seeing him go without food so he can pay bills. His social life has all but disappeared.
For those who do manage to save, the experience is often one of extreme frugality. Robert, an insurance professional from Birmingham, has amassed £95,000 in his emergency fund, but this was only possible by forgoing leisure activities and never having children. He admits that living life without luxuries has left him feeling "like I've missed out on experiences" in his youth.
In big cities like London, where work often dictates the need to live elsewhere, high costs are crippling households. Kira, a communications manager, earns a decent salary but struggles to save due to skyrocketing rent and living expenses. Her debt from the pandemic is still weighing her down, and she resents having to pay £800 per month for a shared house with four others.
The financial squeeze is so severe that even those who have managed to put aside some savings are worried about making ends meet. Jon, a 45-year-old firefighter, has an emergency fund of £2,000 and an ISA worth £15,000, but he's still close to the edge. With two adults working full-time, his household income is just barely sufficient for savings.
It seems that only those who are extremely disciplined with their money can manage to save in today's economy. Neal, a 43-year-old professional from North Yorkshire, has managed to clear debt and start saving after years of financial struggles. However, he admits to feeling constantly worried about money due to uncertainty over his monthly paychecks.
As the cost of living crisis continues to spiral out of control, it's becoming increasingly difficult for households to afford even basic necessities. The lack of savings is leading to a cycle of debt and stress that's affecting people from all walks of life – from middle-class professionals like Andrew to those who have barely scraped together any money at all, like Ryan.
Middle-class professionals like Andrew, a writer from Essex who earns around £30,000 a year, are feeling the pinch. Despite his respectable income, he's been forced to stop saving for emergencies and pensions due to "paycheck to paycheck" living expenses that total over £2,800 per month. His only savings are £4,000 in a stock market account, which would vanish quickly if his household income were to cease.
Others, like Ryan from Glasgow who earns the same annual amount, have been left with nothing – literally. "I've saved exactly £0," he admits. Without a safety net, Ryan lives life on credit, with some months seeing him go without food so he can pay bills. His social life has all but disappeared.
For those who do manage to save, the experience is often one of extreme frugality. Robert, an insurance professional from Birmingham, has amassed £95,000 in his emergency fund, but this was only possible by forgoing leisure activities and never having children. He admits that living life without luxuries has left him feeling "like I've missed out on experiences" in his youth.
In big cities like London, where work often dictates the need to live elsewhere, high costs are crippling households. Kira, a communications manager, earns a decent salary but struggles to save due to skyrocketing rent and living expenses. Her debt from the pandemic is still weighing her down, and she resents having to pay £800 per month for a shared house with four others.
The financial squeeze is so severe that even those who have managed to put aside some savings are worried about making ends meet. Jon, a 45-year-old firefighter, has an emergency fund of £2,000 and an ISA worth £15,000, but he's still close to the edge. With two adults working full-time, his household income is just barely sufficient for savings.
It seems that only those who are extremely disciplined with their money can manage to save in today's economy. Neal, a 43-year-old professional from North Yorkshire, has managed to clear debt and start saving after years of financial struggles. However, he admits to feeling constantly worried about money due to uncertainty over his monthly paychecks.
As the cost of living crisis continues to spiral out of control, it's becoming increasingly difficult for households to afford even basic necessities. The lack of savings is leading to a cycle of debt and stress that's affecting people from all walks of life – from middle-class professionals like Andrew to those who have barely scraped together any money at all, like Ryan.
£16,067 is literally NOT ENOUGH 
saving for a household in the UK! I mean, think about it, if you're earning around £30k and you've got a family, that's basically gone after bills, rent, food... there's barely any money left over 
. And £4,000 in the stock market? That's just a pipe dream for most people 
. It's crazy that some people have even saved nothing at all... like, what do you do with no savings?! 
They're living paycheck to paycheck with expenses over £2,800 a month! It's crazy that only people who are super disciplined can save anything 
The average person has just £16,000 in savings, which isn't even enough for an emergency fund 
I feel bad for everyone who's struggling, especially with rent prices being so high in cities like London 
We need to find a way to make living expenses more affordable 
... it's honestly insane how much financial pressure is being put on people in the UK right now. I mean, £16k in savings? That's basically nothing. And you're saying that 40% have even less than that?! It's like everyone's living paycheck to paycheck, with no safety net at all 
.
It's like we're living in a different world right now.
. I've seen people who work hard and have good jobs still struggling to make ends meet because of these astronomical costs.
. We can't just expect people to be super disciplined with their money when they're struggling to get by. We need some kind of safety net, like a universal basic income or something. I don't know what the solution is, but we need to do something about this financial squeeze ASAP 
it's crazy how financial struggles can affect anyone, regardless of income level. £16,067 is basically nothing considering the cost of living in places like London 
. I mean, £4,000 in a stock market account might seem like a lot to some, but it's basically nothing when you're living paycheck to paycheck 
.
And it's all because of those crazy high living costs, but what's really behind that? Are they just trying to control our spending habits and keep us in debt forever? 
. £16,067 is basically nothing in savings for the average UK person 
, with no financial safety net 
. I feel for guys like Andrew and Ryan who are struggling so much 
. For people who are living in debt and can't afford even basic necessities, it's like they're trapped 
.
The fact that some people are forgoing leisure activities just to have a emergency fund 
. That's just sad 
. The cost of living crisis is real, but it's not just an economic issue 
. We need to find ways to support each other and create systems that work for everyone 
.
.
. I get it, Jon has an emergency fund and all that, but £2k isn't going to make or break the bank 
. Neal's story is inspiring, but also kinda scary – always worried about money? That's no way to live 
. I hope the government does something soon, 'cause only the super-disciplined are going to make ends meet 
!