Consumers ‘Preparing For Financial Future’
An increasing number of Britons are preparing for their financial future, new figures indicate.
In the latest edition of Birmingham Midshires’ Saving Britain report, it was revealed that more than two-thirds (69 per cent) had money put away for the future as of last month. The figure represents an increase on the proportions recorded in June (67 per cent) and January (66 per cent). However, the average amount of cash saved has fallen slightly. At the moment typical savings account for 814 pounds, a decrease of almost 100 pounds from six months ago.
Despite the fall in investments made, the financial services firm pointed out that consumers are currently facing a “more challenging financial landscape” now compared to the same period last year.
And in taking the time to invest money into savings accounts, it is possible that people may find that they are in a more advantageous position to meet numerous demands on their finances in later life, for instance loan and mortgage repayments and credit card bills.
Research from the firm also showed that those living in the Midlands are most likely to be saving as three-quarters of residents are setting cash aside for the future. On the other hand, less than two-thirds (62 per cent) of people from Lancashire are saving money. Meanwhile, the amount Scots are investing for the future has increased by 175 per cent over the past 12 months going from 376 pounds in January 2007 to 1,035 pounds last month.
Commenting on the findings, Jason Robinson, director of savings operations at Birmingham Midshires, said: “While the economic climate has led to a tightening of budgets amongst households throughout Britain, we are delighted to see that people are getting into the savings habit and are maintaining the amount they set aside each month. While many people in Britain may be finding life a little tougher this January compared to last, it is even more important that those with savings are on the lookout for savings accounts that make their money work the hardest for them.”
He went on to claim that although 2007 was known as “the year of the saver”, 2008 will also present a number of opportunities for those people looking to prepare for their financial future. As such, the Birmingham Midshires representative advised consumers to take the time to make sure that they are getting the most competitive rate of interest on their savings scheme. “While times are tough on the purse strings at the moment, savings should remain a key budgeting priority to ensure longer-term financial security,” Mr Robinson added.
Consumers worried about their ability to save money, however, may wish to opt for a UK consolidation loan. Although it represents another area of financial expense, taking out a low-rate loan may allow people to pay off a number of demands on their spending at once, so leaving them with more disposable income to put into savings accounts.
However, people looking to get a loan for this purpose could be advised to make sure they are getting a competitive rate on their borrowing. A recent Abbey study revealed that 99 per cent of Britons need a “financial workout” to help them switch to cost-effective monetary products.
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