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  

5% on your savings?

Despite the budget purportedly being for savers it is still a bit hard to see what you should do with any cash. The record low interest rates for savers over the last few years have been shocking especially following the government’s launch of the Funding for Lending Scheme in July 2012.  The scheme has now been re-focused to business lending and has allowed Banks and Building Societies to recapitalise but the effects been disastrous for savers. The longer term outcome has been that the will for provider to try and bring in new savers has simply not been there and the competition to sell savings accounts has virtually vanished.

The only light out there and the accounts with the high interest are current accounts and they have become the only beacon of light for savers as standard savings account rates have plummeted to record lows.  Obviously, high interest current accounts are just savings accounts going by a different name, many of them are quick and easy to open online and pay more than 2 or 3 times the interest of easy access accounts. If you’re willing to look at all the options you might be able to earn up to 5% and still have access to your cash on some current accounts.

Enable’s IFA’s would almost always say that one of the best things to do in all things financial is to spread your assets, looking at some of the top paying current accounts you might be able to increase your returns without the hassle of having to change your current bank account.


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

Budget Savings...

With the 2014 budget one of the area’s Enable will be able to help with is a review of your savings. Osborne announced a complete overhaul of tax-free individual savings accounts (Isas), saying savers would be allowed to invest up to £15,000 a year in cash accounts, stocks and shares or a mix of the two, and to transfer money from stock market investments to cash savings and vice versa.
So cash and stocks Isas are to be merged and the limit for tax-free savings to be raised from £11 520 to £15 000 for adult individuals.

The changes in the rules will come into force on 1 July 2014 that is when we will see the birth of the "new Isa", or Nisa. The government will also raise the limits for Junior Isas and child trust funds from £3,720 to £4,000 at that time so it might be worth saving for the children or grandchildren this way. The investment limit on NS&I premium bonds is also set to rise from £30,000 to £40,000 from 1 June 2014, and to £50,000 in 2015, and the number of £1m top prizes will increase to two a month from August 2014, a safe investment with the potential to win big doubled!

Better products and genuinely impartial advice, had got to be the way forward to help millions of consumers get the best possible return on their savings and investments. Enable’s Independent Financial Advisors in Bishop’s Stortford are here to help.

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