The want to feel secure is something we are born with as we enter the world we rely on our parents to care for us and provide us with this security. This need of feeling secure is something that tends to stay with us during our lifetime and we often have different ideas of what makes us feel secure. Financial security is no different – ultimately wouldn’t we all like to feel financially secure?
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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