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Brits blame savings apathy on cost of living

2nd February 2011 Print

New research from Confused.com has shown that 57% of Brit's blame their lack of ability to save on the cost of day to day living.

The comparison site recently revealed that 20% of the population are currently not saving anything at all and that a further 34% are saving £50 or under. Excuses given to explain their lack of saving also included spending cash on impulse purchases, low interest rates and repaying debt.

Head of savings at Confused.com, Chris Griffiths said: "Although it can be tough to get into the savings habit, putting away some of your cash for a rainy day really should be something we all try to do on a regular basis.  If you find yourself with no money left to put away, go through your incomings and outgoings in detail to see if there are some non-essentials you can cut out to reduce your spending.  To help, why not try out our new online cost calculator to see where your cash is going."

If you're forgetful, or just find temptation too much, here are Chris's top tips for getting into the savings habit:

Make a pay day deposit

Move a set amount into your savings account on pay day each month. For those with an online savings account, you could do it when checking that your salary has been paid.

Have an end of the month clear-out

At the end of the month move any remaining cash from your current account into your savings account so you start fresh with the money you've been paid. Whether it's £5 or £50 left it will all help.

Drip-feed with smaller amounts

For those in the ‘temptations' and ‘instant gratification' groups a drip-feed could be a good solution. Instead of saving a lump sum at the start of the month, save a smaller amount once a week just as you would perhaps for a lottery syndicate at work or if you were going on a night out.

Go automatic

The lazy or forgetful amongst us may find it easier to set up a standing order to take money from their current account and pay it into their savings account each month: no hassle, no pain, nothing to remember.

Look after the pennies

We all often have change in our pockets at the end of the day, so use an old jar or piggy bank and tuck them away rather than leaving them where you may be tempted to spend them on something frivolous.  Take your coins to the bank after you've gathered a pile and you may be surprised just how much you have saved.

Round up and save the difference

Work out how much your existing direct debits would be if you rounded them all up to the nearest £10 and save the difference between that amount and your direct debit into your savings account, after all, every penny counts. For example, gym membership £15.99 a month - save £4.01 into your savings account; mobile phone bill £27 per month - save £3.00 into your savings account.