Are you saving enough money?

Figures also showed that rising inflation has prompted more than half to reduce the amount they used to save, while more than one in three have stopped saving completely. At the same time, 36 per cent admitted they are relying on savings to get them through the cost-of-living crisis, while 33 per cent said they believe they would not have enough saved up to cover their living costs for a single month if they lost their income.

So where does all this leave us?

Too many of us simply do not have enough money put away for the future and the rising cost of living means lots of people do not feel able to put as much as they would like into savings. Furthermore, a huge number of people are relying on minimal savings to cope with soaring inflation, and do not have enough saved up to get by should they lose their job.

Perhaps unsurprisingly, this situation has led to many people turning to credit, but this too can have damaging effects. According to MaPS, 79 per cent of UK residents use credit, but of this number, more than two-fifths are feeling anxious about the amount they owe. Meanwhile, over a third admitted they feel worried about how many different lending products they have.

Financial stress can be devastating for a person’s mental health, so it’s really important that you take decisive action as soon as problems start to appear on the horizon. The first step to take is to raise the alarm and seek help.

The MaPS survey revealed that more than eight in ten UK adults still avoid talking about their finances, with many admitting this is because they are afraid of being judged, they feel ashamed or embarrassed, or are scared of burdening others.

It can be an uncomfortable conversation when speaking about your own financial situation, but it will only be measured in hours, whereas the mental relief felt should give you a lift over a longer period of time.  This is why formulating a plan of action earlier rather than later can make a big difference to your wellbeing.

Services such as MoneyHelper are available free of charge and offer guidance on issues such as savings and debt. You could also speak with a professional, regulated financial adviser, who can take a detailed look at your finances and suggest ways to make your money work harder for you.

If you have any questions about how to manage your money, please do not hesitate to get in touch with us and we’ll be happy to help.