Savings Goals Motivate Brits to Tuck Money Away
A worrying 13 percent of the UK population admit to having no savings to fall back on in unexpected circumstances, research reveals.
The study highlighted how the high cost of living is making it harder for a lot of people to save money.
More than a third of Brits in the survey admit they do not have enough money to cope in an emergency, according to NS&I’s Savings Survey.
“It can be difficult to save and pressures on disposable income often prevent people from setting aside as much as they would like, but there are simple steps people can take to improve their savings habits,” said Tim Mack, NS&I savings spokesperson.
“The findings show that it really doesn’t matter how old you are or how much money you earn when it comes to adopting savings habits.”
Others who do save claim having saving goals helps to motivate them, as 35 percent who tuck money away say it is for a deposit to buy a home.
While 21 percent are saving for retirement, and 21 percent are saving for a car, while 19 percent are saving for their children’s future.
The average Brit sets aside 8.31 percent of their monthly income every month – this equates to about £100.24, with men setting aside more (£115.80) compared to women (£84.84), but this is only marginally more when the proportion of income is taken into account.
How to Save Effectively
The current economic climate is a barrier for some when it comes to saving, as 25 percent of Brits said they were less likely to save over the next three months.
Encouragingly, 16-24 year olds appear particularly committed to saving money, 40 percent say they set themselves savings goals.
Mack explained these lessons should be adopted by all, and pressures on disposable income should not prevent people from setting aside what they can.