Personal finances in 2014: savings up, debt down and happiness increasing

When it comes to personal finances, 2014 has been a good year for more people than it has been bad for. In fact, according to research carried out for budgeting account provider thinkmoney.co.uk, 6.8% more people say that they are ending the year with more savings than say they are ending it with less. Similarly, more people say that they will end the year with less debt than they started with.

2014 finances in review - Net % of respondents

+6.2% Happiness has increased over the year (net = those whose happiness has increased minus those whose happiness has gone down)

+29% Debt has decreased over the year (net = those whose debt has decreased minus those who have borrowed more)

+6.8% Savings have increased over the year (net = those whose savings have increased – those whose savings have decreased)

+1% Earnings have increased over the year (net = those whose savings have increased – those whose savings have decreased)

As well as a net increase in the numbers who say they have increased savings, and those that have reduced their borrowing, slightly more people say that their earnings have gone up over the course of the year than say that they’ve seen a decline. With so much positive financial news around it is perhaps no surprise that there has also been a net increase in happiness over the course of 2014.

Turning to 2015, putting money aside remains the top financial New Year’s resolution for Brits. Nearly half (47%) of respondents - equivalent to 23.8 million people across the country - have pledged to set more money aside for a rainy day in 2015.

Ian Williams, spokesman for thinkmoney, says: “It seems that for many people 2014 was kind to their personal finances, with net increases in the numbers seeing high incomes, boosting their savings and cutting their borrowing.”