Thousands fail to plan financially

Thousands fail to plan financially

Nearly a fifth of all Britons worry about money all the time and 47 per cent find it difficult to make their monthly wage last until their next payday. 

In an Institute of Financial Planning (IFP) survey, three quarters of people said they would be happier if they had more money.

Today marks the start of Financial Planning Week 2010 outlining the major issues people face with their money and also offering advice on how make your money last.

Just 14 per cent of people have financial goals to work towards and 88 per cent of young people, aged between 25 and 34, do not have a financial plan they review regularly.

The bleak results from the survey show that 33 per cent of people hope a lottery win will solve their financial problems and women in particular struggling to make their earnings last.

Geographically, people in the north east worry most about their finances, the use of financial advisers is highest in the east midlands and the Welsh tend to save more for birthdays and Christmas than anywhere else in the country.

Nick Cann, chief executive officer of the IFP, says taking a few small planning steps is all it takes to make a big difference.

Encouragingly, 84 per cent of people surveyed in the IFP poll, conducted by YouGov, refused to take out a credit card or borrow money, and would choose to make cutbacks instead to find extra money.

John Prout, sales director of National Savings & Investments, advises: ‘It’s important to make an honest appraisal of your financial situation on a regular basis, through assessing three key things; the value of your assets/debts, the interest rate you are paying or earning on these and whether you could manage financially if your income was to reduce or your outgoings to increase’.

For more financial planning tips, visit www.financialplanningweek.org.uk.


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