WE’RE NOT saving enough - and it could lead to regrets further down the road
According to research from Debt Advisory Centre, almost half (48%) of people in Yorkshire don’t save anything at all each month. When these people were asked why they didn’t save, they either said that they intended to save, but ended up spending it, or that saving was just not something they even expected to be able to do.
Ideally, we should all have enough saved to cover us for an unexpected change in circumstances. But for many people, the root cause of this lack of saving is money simply being too tight, rather than overspending or lack of budgeting. Of the people in Yorkshire who didn’t save, a massive 81.7% said it was due to having no spare money at all.
Top saving experts say that you should focus on building an emergency fund as a propriety to help you cope with life unexpected events. Yvonne Goodwin of the Leeds based Yvonne Goodwin Wealth Management, advises building a savings pot equivalent to three months’ worth of your living costs. This gives you something to fall back on if you are between jobs or unable to work due to sickness.
That we’re not saving enough is supported by figures from the Money Advice Service, a financial advice resource set up by the Government. Nationally, it found that 4 in 10 of us have less than £500 or more stashed away for a rainy day. Even more worryingly, ING Bank estimates that just over a quarter of people have no savings at all.
Not having enough saved away can place households under huge pressure should an unexpected expense come their way and, in some circumstances, can force people to borrow when they would rather not. It can also be a cause for regret later in life.
When Debt Advisory Centre conducted research into how women use money up and down the country, 24% of Yorkshire women said they wished they had saved more.
Come April 2018 there could be more help available. The Government’s Help to Buy Scheme is set to start then, and should provide a welcome top-up for some people struggling the most to save. As it stands, you would have to be receiving in-work benefits to qualify. If you save £50 per month the Government plans to add another £25 a month to top up your savings. If this scheme goes ahead as planned it could provide a real incentive for people to start saving and see their money grow faster than it normally would.
The Money Advice Service also calculates that 28% of people don’t want to discuss their money issues openly. If you’re struggling with money management or debts, make sure you get the support that you need, either from the Money Advice Service, or debt specialists such as Debt Advisory Centre.
Debt Advisory Centre: 0161 871 4881