In a survey by Portafina* which explored the financial achievements and life goals that help people’s financial confidence, an overwhelming 72% cited savings as the top ‘must have’ to feel secure financially. The average amount of savings that those polled said they would need to feel stable was £34,254.47. According to HMRC, the average ISA saving is £21,339.
The findings revealed that owning a house (65%) ranked second on the list, followed by having no debt (53%). It found that those who own a home are 37% more likely to feel financially secure than those who rent.
Having more money coming in than going out ranked fourth on the list for 35% of respondents, while having a rainy-day fund scored 28%.
Money aside, the researched also found respondents rated having a steady, long-term job as a key factor in making them feel secure (46%), followed by being in a long-term relationship (42%). Having close family relationships, marriage and living near to family were also rated as important.
Interestingly, women were found to feel more secure than men if they have a close relationship with their parents and children or live near to family.
The top 10 financial ‘must haves’ to make people feel secure financially were:
- Savings (72%)
- Owning a house (65%)
- Having no debt (53%)
- Having more money coming in than going out (35%)
- Having a rainy-day fund (28%)
- Being able to own a car (26%)
- Not hitting zero in your bank account (21%)
- An empty credit card/not maxed out credit card (19%)
- Not using your overdraft (17%)
- Knowing you can afford to help your friends/family financially without it impacting your own life (15%)
Ultimately, whether it’s having savings or owning a house that makes you feel secure, the following simple tips are recommended to help people become more financially secure; stick to a budget, have a rainy-day fund and shop around to manage/reduce debt.
* Source: Portafina (05/09/2018)
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