Less money being put aside but more people saving
Saving is a very important aspect for most people, whether they are putting aside money for a rainy day, for emergencies, or for a specific purpose such as a child's education, a wedding, a holiday, or anything else. According to recent reports more and more people seem to be realizing the importance of saving their money, with an increase in the number of consumers putting money aside compared to the number of people saving money during the same period last year.
Although the number of people that have been putting money into savings has risen compared to this time last year, the reports also indicate that the amount of money each person is putting aside has fallen. Around 67% of consumers are now saving money compared to around 62% this time last year. However, there has been a drop of about one third in the amount of money that is being saved in the UK over the same period.
Many experts feel that rising interest rates have had a large part to play in this trend, as consumers have realized the importance of having emergency funds put aside, hence the increase in the number of consumers that are saving, yet due to increased repayments consumers have less money to put aside, hence the decrease in the amount of money that is being put into savings accounts.
Experts state that consumers should try and keep at least three months worth of salary in their savings accounts at all times, even if it means making cutbacks on spending each month. One official stated: "It's easier said than done but it's recommended that people have three months’ salary put aside in case of financial emergencies - this equates to £5,899 for those on an average income."
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