Third Of The Nation Don’t Have Enough Savings To Last A Week

One in three people in the UK don’t have enough savings to last a week, according to the findings of a new survey that was published last week.

Research by HSBC claims that a third of the nation has less than £249 - equivalent of five days' average take-home pay - with 19 per cent having no money saved at all.

As a debt charity, we regularly receive calls from people who are faced with an unexpected change in circumstances and don’t have enough money saved to tide them through their financial difficulties.

Perhaps they’ve lost their job due to redundancy, or a member of the family is unable to work due to illness – whatever the situation, having your regular income taken away can be extremely worrying, particularly when you have no savings to fall back on.

Some may think of ‘saving for a rainy day’ as keeping some money aside for a treat, but it can be an important financial safety net too. Although an individual’s financial commitments may make it difficult to save, people can often find new ways to increase their savings by setting a household budget.

Our advice for people that want to boost their savings is to:

Evaluate your finances - Look at your income, outgoings and credit commitments to see whether you have any surplus income available to save. Our budget calculator can do this for you.

Look at ways to save - You may find that there are ways to cut down your
non-essential spending – perhaps by reducing the amount you spend on holidays or clothes. You may also find that switching suppliers could reduce the amount you spend on household bills - which can then be put in a savings account.

Set a target - Once you know how much you can afford to save – set yourself a realistic target and stick to it.

For people who are having financial difficulties, our Debt Advice Foundation counselling team is available to offer debt advice and support on 0800 043 40 50.

More details about the HSBC research can be found here.