Cultivating a savings habit

Enables IFA’s in Bishops Stortford are great believers in the value of cultivating a habit of making savings. Much financial stability can come from saving but in the current economic climate having enough money for savings has proved difficult for many families.

 Two recent surveys have revealed the extent to which families have lost the savings habit to cover the cost of unplanned events, such as fixing the car or paying for repairs in the home. The independent Money Advice Service, as part of its Financial Capability Survey, asked 3,500 people across the UK how they would pay for an unexpected bill of up to £300 within a week. Although 22% of them would dip into their savings (and 43% could pay with day-to-day cash), some 24% would use high-cost credit, ask for family help, or face problems.

Prof Ashton, of Bangor University, said the use of overdrafts and other loans was a much more expensive way to pay bills. Yet low interest rates are undermining any incentive to save. "We are asking young people to save in an environment where there are no Brownie points for saving," said Janette Rutterford, professor of financial management at The Open University.

Failing to divert money into savings is the result of a number of reasons, according to Prof Ashton and Prof Rutterford.  Firstly, there is no longer a savings culture in the UK that mirrors a thrifty society such as China. There is easy access to credit and confidence in the safety of savings took a hit during the financial crisis and most importantly, interest rates have been pitiful for more than seven years. Enable’s IFAs in Bishops Stortford can help you get back into the habit of saving for financial stability.

Source: The Independent

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE