Britons Spend Today and Forget About Tomorrow

By: Andrew Regan

According to a spokesperson for independent financial advisory firm St Edmundsbury Financial Services, consumers should have three to six months' salary in an easy access savings account set aside - yet many are struggling to heed his advice.

Mark Wapshott believes the primary cause of this is not a reluctance to save, but an inability to do so given a number of financial constraints. However, he has also lamented the fact that there is not enough advice given to youngsters regarding the importance of managing finances prudently.

"The main reason for people not having enough money saved for important things is that there are too many demands on limited income - clients tend to spend for today and forget about tomorrow," he confirmed. "Education at school level should also be improved."

The role of education in increasing the propensity of Britons to save is crucial, Mr Wapshott furthers, especially as those in the 18 to 25 age bracket are deemed to have the least interest in saving while the more mature among us (the over-55s, in any case) are most likely to do so.

For those who find setting money aside in a uk savings account difficult, Mr Wapshott has a number of tips - the most prominent among them being a recommendation that a strict budget should be adhered to.

"People struggling with savings should set up a standing order or direct debit to a savings plan (or just a deposit account to start with) and then prepare a budget and identify where they are currently spending. Most people will be surprised at how much they spend on just enjoying themselves. Then they just have to budget, budget, budget," he said.

"Most people carry too much debt, including their mortgage, and should repay as much as possible prior to making any saving decisions," he advised. After that, more "essential things", such as "holidays, car purchases, house deposits and retirement income", could then be saved for.

Furthermore, Mr Wapshott recommended that Britons use an NHS dentist to save money or have dental insurance, and fund the purchase of Christmas presents from their salary rather than their savings.

Research conducted by National Savings & Investments shows that nearly half of 16 to 24-year-olds are persuaded to spend by their friends even when they have run out of money - leaving them with little opportunity to save.

Money Management
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