Friday, October 15, 2010
Category:
Consolidation
According to new research commissioned by Skipton Building Society, three key factors appear to be motivating Brits to save money – ‘homes, heirs and happiness’.
When it comes to the greatest savings funds, it was found that deposits for a new property ranked at the top of the list. On average, £77,000 is reportedly held in savings accounts for this very reason. Furthermore, the research revealed that on average, £42,000 is held in savings accounts for the purpose of leaving an inheritance for loved ones. However, Skipton Building Society has pointed out that ‘not everything Brits are saving for is as tangible’. On average, £30,000 is saved for ‘happiness’.
Findings also show some more unusual reasons behind saving, such as ‘running away’. This particular fund reportedly stands in excess of £21,000 on average, which would cover the cost of several round the world tickets. What’s more, an average sum of £9,000 has been set aside for beer – enough to buy a round of 4,000 pints! Shopping funds were also found to amount to £9,000 on average.
Head of Products at Skipton Building Society, Kris Brewster, commented: "While much has been said about the need for Britons to save more, we have decided to look at what people are currently saving for and just how successful they are with their savings goals. While the more serious topics such as homes, retirement and providing for the future feature in our list, there are clearly also some much more fun goals people are setting themselves to save up for. The bottom line is clear - people are much more committed to saving if they are actively saving for something, rather than just putting money away.”
The research reportedly highlights the fact that ‘Brits are being creative’ with regard to their savings goals. It is believed that setting money aside ‘for something’ is a driving factor behind the nation’s efforts to save. In fact, it was found that 31 percent are of the opinion that it is easier to save when they have a particular goal in mind. In addition, 16 percent reportedly feel that it is ‘more fun’ spending money when a savings goal has been achieved.
Kris Brewster concluded: "We have decided to take a slightly different approach to saving. Clearly everyone can name a handful of things that they aspire to have or spend money on. By putting a badge on our MySavings accounts, we simply remind people what that specific pot of money is for and hopefully encourage them to try that little bit harder to achieve their aspirations and become savvy savers."
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Homeowners who are keen to set money aside each month, but are unable to due to the fact that they have several monthly credit and store card repayments, could consider taking out a secured loan to consolidate their existing creditt. One of many finance options available, a secured loan for
consolidation could allow borrowers to tie up any existing debts into one place, thus potentially reducing monthly outgoings. The extra money that is freed up could then be put into a savings account if desired. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
