This is the amount you need to save to feel financially comfortable
Researchers say that having a savings pot up to £ 2,000 significantly reduces the risk of staying behind with home bills.
Households with a large emergency fund reduces their chances of borrowing by 60 percent compared to those who have less than £ 200, because they can use the money for unexpected expenses.
According to the National Statistics Office (ounces), an average Buffer of £ 2,000 for an average United Kingdom Household, about a monthly salary of £ 2,912.
In the last five years, the cost of life has made people indeed to more and more home bills.
According to the Solution Foundation thought tank, the British household energy debt has doubled in ten years.
However, the study, which is assigned by the Association of Building Associations, shows that the potential of one month income reduces the likelihood of remaining behind with invoices about three (75 percent).
Researchers from Bristol University Personal Finance Research Center followed the financing of approximately 7,000 people for 10 years.
Academics said that £ 2,000 should not be seen as a minimum requirement, because even 200 £ saving can potentially reduce the chance of financial problems.
It is five times higher for households with a mixture of research, savings and investment products to say that they live comfortably.
ADVERTISING
ADVERTISING
Researchers said that regular saving and determining a realistic saving target is the key to success.
However, this month’s Decision Foundation report said that millions of working -age families in the UK is struggling to save, and at least two -fifths have less than £ 1,000 in the current savings.
Andrew Gall, the President of Savings and Economy in the Association, said, “We appreciate that £ 2,000 for some families cannot be reached at the moment.
“However, the research showed that even small, regular savings like £ 10 a month would create flexibility over time and improve people’s welfare.”
He said that people with good saving habits are more likely to have other savings and investments that can help people buy their first houses.
Sara Davies, a part of the Associate Professor and the research team of Bristol, said, “This research confirms the protective effect of financial buffer holding the protective effect of holding a little more for the maneuver if they encounter an unexpected expense or shock to their income.”
The Debt Charity Institution StepChang has previously called for a state action to overcome the Council tax regulations, including a debt evacuation plan to address historical energy debts, and the termination of the rules of imprisonment and to create “household financial flexibility”.
Additional reporting by PA
