People who plan ahead financially 'save £600 more per year than worriers.'
Published 23 April 2012 by Helen Gradwell
Many British people are getting themselves into 'a cycle of financial fret' and spend more time worrying about money than saving it.
It seems that worrying about money doesn't pay. Research by NS&I has found that people who spend their time worrying about money save an average of £53.47 each month, whereas people who focus on financial planning save more, with an average of £104.39.
Most people have worried about money at some point, in fact 75% of people worry about their finances at least once a year. However, 41% of these worriers spend more time worrying than actually planning what to do with their money.
25% of British people admit to feeling guilty because they do not plan ahead and, as a result, end up spending more money. Those who plan, on the other hand, put an average of £600 per year into a savings bank account, which is enough to pay the average gas and electricity bill for six months.
Interestingly, 10% of the people who said that they worry about money at least once a day only check their bank account and other finances once a month.
NS&I Savings Spokesperson, John Prout, said: "Britons seem to be getting into a cycle of financial fret. Time is spent worrying instead of focusing on money management and finances suffer as a result, causing more stress. By planning ahead and taking active steps, we can take more control of our money and work towards saving. So if you're getting money worries, take some time out to review the situation and take action."
An expert from thinkmoney commented: "If you find it difficult to plan ahead financially, you may benefit from a managed bank account. The thinkmoney Managed Current Account splits your money into two accounts. One is for your 'essential' costs, such as your mortgage/rent, bills and groceries, and the other contains your spending money, which you can use as you wish. This means that you won't accidentally chip in to the money that you need for your essentials.
"It may be advisable to put some of the money from your 'spending' account into a savings account, to help avoid money worries in the future. This will give you a safety net in case of unexpected costs, such as a high energy bill or car repairs."
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