The British have no savings to go back to a quarter

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New research by debt management company Lowell shows that almost a quarter of Britons (24%) do not have any money for savings on a monthly basis.

John Pierce, Lowell’s UK CEO, explains: “Unfortunately, this study confirms that many people across the UK are trapped in a life-to-pay trap. If your situation changes unexpectedly, it can be a slippery slope to uncontrollable debt.”

The British’s saving habits left much to be desired

Lowell’s research shows that the lack of good savings habits is even more pronounced in some cities. In Plymouth, 34% of people save nothing. And more than 30% of Birmingham and Sheffield residents don’t save money either.

But if the recent crisis has shown us anything, then an emergency fund is essential to deal with the unforeseen situation. Still, according to international advisers, 51% of adults in the UK do not have enough emergency savings to protect themselves in a crisis.

Why aren’t the British saving more?

Simply put, the British are not saving because they are spending most of their money too fast. Residents of West Yorkshire, for example, spend 51% of their wages in the first week after pay. Norwich’s population is close to 49%. Even slower spenders like Brighton residents spend 39% of their salary within the first week of payment.

According to Pierce, the study confirms that many people across the UK are struggling to keep track of where their money is going each month. And Pear indicates that unless you return to financial control and avoid accidental overhead costs, you are at risk of financial emergency.

How to start saving

Getting started may seem challenging, but it doesn’t have to be. Here are some tips to help you take the first step

Start small

Don’t wait until you have hundreds of pounds to start saving. If you save just £ 2 a day, শেষ 730 will be credited to your savings account by the end of the year. Also, putting money aside on a regular basis will make you a habit of saving, no matter how small.

Automate it

Set up a standing order to send money to your savings account on a regular basis. Even a small amount once a month will help increase your savings. Set the transfer as soon as you receive your wages so that it looks like another bill.

Try a savings challenge

Make saving a game and have fun You can simply save all your £ 1 coins, try the 52-week savings challenge, or empty your change into a piggy bank at the end of each day.

Set a savings goal

It can be a saving for a certain thing or a certain amount of saving within a certain date. Having a goal is a great way to focus on savings and it can help you spend less.

Choose the right savings account

Don’t just keep your money in a savings account that gives you an interest rate of around 0%. Consider other options, such as a cash ISA, where you pay no tax on the interest you earn.

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