With the stresses and strains caused by the pandemic, research has found that a quarter of us do not feel confident about our financial situation right now.
Some 26% of people across the UK are not feeling positive about their personal finances, according to new research by the Chartered Institute for Securities and Investment (CISI).
While it may be difficult, especially with additional expenses such as Christmas on the horizon, Rachel Springall, a finance expert at Moneyfacts.co.uk, says it’s vital people make time to assess how resilient their finances are looking for the months ahead.
For example, she says some people who’ve built up savings during lockdown earlier in the year would be wise to put this into an easily accessible emergency fund.
“At the same time, budgeting is a great way to keep on top of the savings habit and consumers could look back to the months before lockdown and now to see how their spending habits have changed,” adds Springall.
“Consumers may have different aspirations for their cash – but the shock of the coronavirus will only fuel the necessity to become more savvy with money in the years to come.”
Top tips for building financial resilience
Not feeling very confident about your own finances right now? These are Springall’s top tips for building financial resilience in tough times…
1. Use free mobile apps and budgeting tools
Mobile apps can help you get more ‘hands on’ with your finances and keep an eye on daily changes to your accounts. Some are designed to help budgeting and set specific savings goals.
2. Consider interest-free cards
People may be particularly worried this year about covering the cost of Christmas. A zero-interest credit card may help to spread the costs, but be sure you can clear your balance before interest kicks in.
3. See if it’s worth switching your savings
Find it hard to keep track of your spending? Our budget planner can help: https://t.co/2NP7ci3Nu3 pic.twitter.com/RInchECJlL
— Money Advice Service (@YourMoneyAdvice) July 21, 2020
The top rate deals in the savings market change frequently, so keep an eye on the best accounts.
Some savers may be earning very little on their hard-earned cash, perhaps if they have an easy access account tied to their high street bank’s current account for convenience.
Some accounts pay savers as little as £2 interest in one year on £20,000-worth of savings.
4. Future-proof your retirement
The state pension age generally increased to 66 in October for new retirees, and younger generations face being closer to 70 when they retire. Savers may want to bear this in mind when planning for a comfortable retirement. Automatic enrolment ensures that eligible employees are enrolled in a workplace scheme. Adults aged under 40 may also consider opening a Lifetime Isa.
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