Cost of Living to Blame for Brits' Lack of Savings
Brits blame their lack of ability to save on the high costs of day to day living, a new study reveals.
While 34 percent of UK adults admit to saving £50 or under each month, 20 percent save nothing at all, a study by Confused showed.
The excuse for 57 percent was the high cost of living making it harder to stretch their finances to cover essential outgoings.
However 12 percent admitted to being tempted by a luxury item, explaining their lack of saving, five percent are lazy and never get round to it, while 13 percent are prioritising paying off credit card bills.
“Putting away some of your cash for a rainy day really should be something we all try to do on a regular basis,” said Christ Griffiths, Confused head of savings.
“Go through your incomings and outgoings in detail to see if there are some non-essentials you can cut out to reduce your spending.”
The low rates on savings accounts currently available is putting five percent off from saving regularly, four percent blame impulse purchases, and one percent think they do not need savings as they can fall back on their credit cards.
Tips for Saving Each Month
It is important to have some money tucked away should you be made redundant, or another unexpected event should occur in the future leaving you short of cash.
The study by Confused showed that three percent do not know what is stopping them from saving.
If you have the funds to put into a savings account then it could be a good idea to get an automatic transfer set up so you see it as another necessary outgoing as opposed to an option which you can opt out of if you see those new shoes you have always wanted.
To help you budget, try using a pay as you go card as an alternative to your credit card, as you cannot get into debt or overspend without having to readjust your budget.