Being frugal is back in fashion
For years the British population has been submerging itself in a sea of credit and debt, taking out loans and credit cards have become the norm for today’s modern spend happy Brit. However according to recent figures the British population are no longer amounting credit at a rate of noughts but are actually choosing to be extra frugal with their cash. In the wake of a global recession the savings ratio has moved up to 4 or 5%, compare that to 12 months ago where we were saving less than any time over the previous 50 years.
The biggest rise in savers has been between the age group 25 to 34 years old; these are people who have traditionally grown up with the easy going lifestyle where loans and credit cards are used to purchase goods in lieu of actual savings. This is a group who often seen to be footloose and free who don’t look further than the weekend, a type of living many have grown accustom to. However the recession has hit them a cold glass of water and made them become extra thrifty and frugal with their savings now choosing to put them in a savings account, with reservations about the future and the economy they are now putting money aside for the proverbial ‘rainy day.
What many financial experts are saying is to be careful with what you do with your money and the investments you make. Avoiding building up any debt that isn’t really necessary, instead be frugal and plan for the future and save for those things you don’t need right away. Some are suggesting spreading any savings over various investments as this will protect your money as it won’t be tied up in one place if the worst was to happen. Investing in commodities and property gives your investment a much stronger support; it isn’t only balancing on 1 leg but being supported by 3 or 4.
However they do recommend you do your research as a lucky ‘punt’ might work on one occasion but it is no way to ensure financial safety for the future. Avoid the pitfalls of bad investments by putting your savings into an account that is guaranteed for a certain amount or a high rate ISA. If something is too good to be true, it usually is.
If you are interested in savings accounts or looking to set up an isa in the near future you may wish to use a savings calculator to help maximise your money and make the most out of your cash. Article Source:http://www.articlesbase.com/personal-finance-articles/being-frugal-is-back-in-fashion-1082724.html
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