There is no doubt that we are currently living in tough financial times. The cost of living and inflation is rising on a constant monthly basis. Of course, this is due to energy prices hitting all-time highs which is putting a lot of pressure on household budgets. All of this doesn’t mean that you can’t still have a savings goal thought. Where possible it’s important that you have some savings for those rainy days when an unexpected expense occurs.
HSBC have commissioned new research on how people save money in Britain and how savers are investing their money in different ways. The results of the survey, carried out by YouGov Plc, are actually quite surprising. Let’s look at some of the results of the study about how British people approach savings.
The research discovered that just over a third of people in Britain have a savings target. 21% of those were being optimistic that they will hit their financial saving targets. The research carried out on behalf of HSBC revealed that cash (53%) is the most popular way across Britain to put money aside for the future. There are other ways people save with London leading the way in cryptocurrency (6%). The East of England are more likely to invest in shares (23%). Scotland sees 35% investing in pensions, and Wales invests in gold and antiques (4%). As you can see, different parts of Britain have different ways of investing and saving.
Younger British people (aged 25-34) are way ahead of their older counterparts with more than half (55%) saying that they’re saving towards a specific target. However, younger adults are more likely to dip into some of their savings due to overspending (39%)
It was also discovered that there is a gender divide. Women (40%) are better than men (32%) in using a plan when saving to reach their saving goals. Married couples lead the way in national average with having a savings plan. In fact, 49% say they are working towards a definite savings goal.
The research and data also suggested there was quite a large regional divide across the country. It was discovered that those living in the South West and North East of England are ahead in setting out a savings goal (42%). Whereas those living in the East of England and Wales were less likely to have a plan or savings target (31%).
The overall results from the research commissioned by HSBC discovered that almost 4 in 10 (39%) of people in Britain say that they have managed to reach their own savings target.
The most common reasons that people failed to reach a savings goal are:
- An unexpected life event (40%)
- Dipping into savings to make up for overspending (29%)
- Setting a goal that was too high (10%)
This survey which was commissioned by HSBC highlights that one key change we can all make to manage our money and help us on a path to wherever we want to be financially. The research emphasises that setting a savings target no matter what age, gender or where we live is a key step towards achieving our own financial goals and in particular it’s very pleasing that younger people and women are way out in front.
The research for me also showed no matter what your circumstances, if you are realistic about what you can afford to save from your salary, you can set a savings goal that can be achieved even in these difficult financial times that we currently live in.
Do you have a savings goal? I would love to hear in comments below about how you are doing.
