Myths and Facts: Savings Explained

As the UK economy slowly emerges from a near three month COVID-19 lockdown, many throughout the country will be concerned about their financial wellbeing. From pensions, family income and inheritance planning to insurances – getting the right information is more important now than ever before.

Having a pot of savings provides not only longer-term financial security but also piece of mind – Our team of experts have listed some of the main myths and facts around savings which we hope you find useful.

Myth 1 – I need a Large ‘Rainy Day Fund’

Whilst many will agree that having a minimum of three months savings for essentials is crucial – every little helps with unexpectedly large bill and can make life that little bit easier.

Myth 2 – You Need a Large Income to Save

This is false – even if you can save a small percentage of your monthly income you can build a useful fund. Even if it means trimming a limited income you can still save – little and often quickly add up.

Myth 3 – You Should be Debt Free Before you Start Saving

Saving isn’t binary – you can both save (as much as you can afford) and reduce debts, a little planning at the beginning of each month will ensure you can save and get your debts down.

Myth 4 – I need to Save 10% of my Monthly Income

Well firstly you can save as much or as little as you can afford – there are no set levels of savings to consider but setting up an automated payment to a separate account will help.

Myth 5 – You need to Save Electronically to be Secured

Digital transactions are certainly easier and allows you to keep a record but so long as you set a monthly, affordable level of savings you can always bank a lump sum when required. It is worth noting also that many bank and savings accounts offer cash back and other incentives.

Myth 6 – If I cut Expenses I can Afford to Save

Saving is a strategy – you can cut expenses which may well free up funds to invest  but you should stick to your plan – if it means cutting expenses then you can save.

In the current climate it is important to have additional funds to mitigate any unexpected or planned expenditures – the key, however, is having the right strategy that is both affordable and sustainable.

We are here to help you
Your first consultation is completely free-of-charge. All you need to do is select a convenient time & date and outline how we can assist you.
virtual advisor
Try out our new Virtual advisor!
Get all benefits of Regular Advice via AI and ML algorithms
Related articles
Featured media
General
Investment
Other
A Guide to VCT and EIS Investments in the UK: Tax Benefits Explained
29 Nov 2024 · Marketing Team

If you’re looking to reduce your tax liability while supporting early-stage businesses in the UK, Venture Capital Trusts (VCTs) and…

Featured media
Investment
Other
How to Navigate the Fine Print on High-Interest Savings Accounts
16 Oct 2024 · Marketing Team

Some high-paying accounts may not always be the best for your situation.  Providers compete to top the best-buy tables, but…

Featured media
General
Investment
Other
Strategies to Reduce Inheritance Tax by Gifting
19 Sep 2024 · Marketing Team

With inheritance tax (IHT) on the rise, here are some strategies to help you save on inheritance tax by making…

Thanks for subscribing!
We’re happy you joined our subscription.
Chech your inbox for future updates.
An error has occured
Please, try again later or
contact us via live chat.