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Saving money can be challenging, especially when trying to keep up with day-to-day costs. But it’s essential to have some savings for unexpected expenses or a rainy day. Unfortunately, according to MoneyTransfers.com, 1 in 4 Londoners lack any savings whatsoever.
Speaking on the data, Jonathan Merry, CEO of MoneyTransfers, said.
There are a few reasons why some people in London might not have any savings. For one, the cost of living in London is notoriously high. Between rent, transportation, and everyday essentials, it can be difficult to put any money away. Additionally, many people in London are on low incomes or are living paycheck to paycheck. This means that they don’t have any extra money to put into savings. Londoners need to start thinking about their long-term financial stability and start putting away some money each month, even if it’s just a small amount. It’s important to have a buffer in case of an emergency, and savings can also help you reach your other financial goals.
MoneyTransfers CEO, Jonathan Merry
Savings Might Help in Mitigating Unforeseen Events
Savings are fundamental. The outbreak of COVID-19 taught us the importance of savings. People must save money to enhance their financial well-being to mitigate unforeseen events.
Now, more than ever, individuals need to make an effort to build their financial resilience. Society needs to assist individuals in saving money. This is because it not only helps the individual but also helps to build a buffer for society as a whole.
There are many ways that Londoners can start saving money. One way is to set up a budget and track your spending. This will help you to see where your money is going and where you can cut back.
The government also should offer financial education in schools to make children and teenagers more aware of personal finance. This would allow them to be better equipped when they reach adulthood and have to manage their own money. Financial institutions should also provide support for customers who are trying to save money.
Value of Savings Vs. Salary
The amount of salary people earn is critical in determining the amount that one can save in a month. One’s level of savings should be directly proportional to their income level. Those with higher incomes have more cash for spending and are better positioned to save for the future than those with lower incomes.
Nevertheless, the money people eventually save depends not just on their wages. There are several other circumstances, such as the attitude of the person trying to save. In addition, those with high salaries have high spending and a greater need for increased retirement funds.
In the United Kingdom, low-income families have an average savings balance of £95. At the same time, families with high incomes have an average savings balance of £62,885. The disparity in wealth between homes with low incomes and those with high incomes is widening.
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