Brits Paying Everyday Expenses And Bills With Savings

As energy prices and the cost of living rises, around a quarter of Brits are turning to their savings accounts to fund their everyday expenses and bills.

Many people are feeling under pressure due to the rising cost of living and rising unemployment and according to moneysupermarket.com and many of those with savings are having to use this money to pay for everyday expenses and bills.

A further 21% are turning to their savings to fund luxury items such as holidays, suggesting many view their savings as a way to afford non essential items rather than as a ‘rainy day’ fund.

Of concern though is that almost 40% of 18 – 34 year olds have no savings put aside and so do not have any financial buffer should their circumstances change.

Kevin Mountford, head of banking at moneysupermarket.com said : With the cost of living soaring it is difficult to balance the books, and many people will be tempted to dip into their savings, however, it is important to have some savings put aside in case your circumstances change suddenly.

The common theory is that it’s best to have at least three months’ of outgoings put aside in case you were to lose your job or be unable to work for an extended period of time.”

Of course this may be easier said than done but the old saying of ‘save the pennies and the pounds will look after themselves’ really does hold true, every penny counts.

As Kevin Mountford adds “Anyone putting money aside should keep an eye on the interest being offered and if necessary, move to a better deal so their money works harder for them. If you are a UK taxpayer, using your annual tax free ISA allowance is also a no brainer.”

MoneyHighStreet.com comment: It is worrying that so many people are having to turn to savings to fund their everyday living expenses. For those that do not have these to turn though the fear of debt problems will be a constant worry.

As well as trying to save by putting into savings accounts, making sure that you have the best deal on your gas and electricity, car insurance, home insurance etc is also vital. By taking time to compare deals on offer you really can benefit.