19 July 2006
Topping up savings is not amongst many people’s priorities when they get a pay rise, a new survey has found.
Rather than clearing any loan they hold or putting money into a pension plan or savings and protecting their future, IFA Promotions found that a quarter of Britons would rather spend any increase in income on luxuries.
David Elms, chief executive of IFA Promotion comments: “Despite well-documented and countless warnings that as a nation, we are not saving enough, it seems that people are yet to adopt a sensible savings mantra.
“People need to place clearing debt and saving much closer to the top of their list of financial priorities.”
The survey also found that 70 per cent of the population claims it is not in a position to save more, but IFA Promotions believes that this is down to poor budgeting than actual affordability.
This means that even without a payrise, many people could be wasting their money on frivolities such as taking holidays or furnishing wardrobes, rather than saving for a mortgage or the future.
Although these are not the most glamorous of options to put money towards, Mr Elms urged Britons to take financial advice to ensure they do not get caught in a bad credit trap later in life.