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Tuesday, 17 April 2018 09:00

Householders now have lowest savings ratio since the sixties

We are always going on about the importance of saving and having something stashed away for emergencies and retirement. Financial stability gives people peace of mind and means that the sticky situations that life can sometimes throw at us doesn’t completely knock us off track.

Imagine our disappointment then when we saw newly released figures from the Office of National Statistics which highlighted the amount of money that people are putting away as savings is now at its lowest ever level.

The average saving amount is now well below 5 per cent – the lowest figure that has been recorded since the 60’s.

There are many factors at play as to why people are not saving as much as they should be.

The first issue is the cost of living. Even though it has been reported that people’s take-home pay is creeping back above the cost of living, people are still feeling the squeeze and are struggling to make ends meet.

In our opinion people need to be far more frugal with their cash. We appreciate that the cost of living is astronomically high and the rise and rise of household bills, goods and services is extremely irritating and disheartening, but some people don’t seem to help themselves in these situations either. They need to realise what’s important. Without sounding patronising, people need to resist the temptation of bagging the new iPhone, spending money on extortionate cable tv packages and reign in the spending on new clothes and fancy restaurants.

Nobody seems to want to compromise.

Saving money month on month is so important. It not only means you can get out of a sticky situation should something crop up that needs money spending; it is also important when it comes to shaping futures. People need to have money put away for retirement and the like.

It is also vitally important that people have a financial cushion in times of national monetary uncertainty, and with Brexit looming and the President of the United States sending ridiculous, antagonising tweets inciting World War 3, there has never been a better time to get financially secure.

People need to budget every month so that they know they can pay their bills on time and if there is any money left-over, then those monies should be put into a savings pot. It doesn’t have to be a set amount every payday – but if something gets put away it will prove to be better than not doing anything at all.