Brits put Less Into Savings …but are They Saving More Than Ever? | Prepaid365

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3 April 2014
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The amount of disposable income being set aside each year by the average household is dwindling, according to official data.

Research from the Office for National Statistics has revealed that people put aside a total of 5.1% of their disposable income in 2013, compared with 7.3% the previous year.

This will be particularly concerning for families on the lower end of the pay scale, where placing a great deal of money into savings is simply not an option.

However, it could also signal a return of confidence, as saving traditionally occurs to a greater extent when concerns over job security are greater.

Savings were just above zero prior to the recession but rose to 9% at the height of it, highlighting the effect that the economic downturn had on the people of the UK.

Wage rises in some key sectors are beginning to outpace inflation, suggesting it could be possible to save more. Although people also appear to be spending more in order to maintain their standard of living.

Staying in control of the finances

With property prices increasing in many parts of the country, keeping a roof over their head is a priority for many people, which generally requires a significant portion of their regular pay packet.

Meanwhile, the costs of everyday items such as groceries are also at a high point, despite some supermarkets cutting the price of milk and a few other key items.

Saving on this type of shop can be quite difficult, but opting for non-brand products and looking for discount purchases can help you save in the long-term.

If storage space allows, stocking up on non-perishable items that are discounted can also lead to savings in the long term.

Careful budgeting and a focus on the essentials can significantly lower food bills, providing more money that can be piled into a savings account or even spent on luxuries.

Managing money and attempting to save

Good money management can also be achieved with the use of a prepaid card, as it limits spending to the amount transferred onto it.

This is ideal in situations where an individual does not want to spend more than a certain amount on something.

For those with concerns over their funds, transferring some to a prepaid card can also help to control spending, as only the sums on the card can be spent.

However, the cards can be topped up if necessary and can be replaced if they are lost or stolen without funds being affected.

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