Consumers are evermore keeping their finances in shape as they look to spending cash in the future, according to the results of a new study.
In research released today by Abbey, an estimated 14 million “super saving” Britons are putting cash away for a rainy day. And although such people are doing so in order to make one expensive, large purchase later on in life, this preparation of their money may also help to manage their finances should they encounter an unexpected utility bill or be required to make a payment on a personal loan or other form of borrowing. Overall, these consumers are estimated to have set aside a typical amount of 3,500 pounds – a total of 49 billion pounds.
The research also showed that a luxury holiday is the area on which most consumers are planning on spending their savings as this accounts for 9.8 million – 34 per cent of super savers. Meanwhile, 4.2 million respondents are looking to buy a new car, with 755,000 people (three per cent) aiming on splashing out for their wedding day. Some 3.9 million are also looking to use their money to refurbish their property, with a home improvement loan a possible method of helping to fund such plans. In addition, an estimated 225,000 are set to use their savings to pay for cosmetic surgery.
Commenting on the figures, Reza Attar-Zadeh, head of savings for Abbey, said: “It’s heartening to see that so many Britons are prepared to save up for big ticket purchases, especially as so many young people appear to be doing so. Nothing beats that feeling of being able to splash out on something you have saved long and hard to own. If you’re saving up for a big purchase, it’s important to make your money work for you.”
The financial services provider also highlighted that men are more likely to save for expensive items than women. Four in ten males are looking to put money away, in comparison to some 31 per cent of females. In addition, men are setting aside a typical amount of 3,890 pounds to put towards a major purchase – almost 1,000 pounds above the average of 2,924 pounds being stored up by the opposite sex.
Meanwhile, younger people appear the most financially prepared, as 45 per cent of 18 to 24-year-olds are currently saving up to make a major purchase. Among the over-55s this proportion falls to 22 per cent. And although young consumers are saving less – 963 pounds compared to the 5,740 pounds by older people – their increased propensity to save money may mean they could be in a better position to meet loans repayments as they get older.
For those concerned that they may be unable to set aside enough money to fund making their purchases, taking out a low-rate personal loan may well be an advisable means of supplementing their spending. Earlier this year, findings from Alliance & Leicester revealed that 37 per cent of Britons are set to take out a personal loan to help them buy either a second-hand or a brand new car. Meanwhile, 34 per cent are aiming to use a personal loan as a means of debt consolidation.