One expert on personal and business bank accounts recently said that Brits should take steps to ensure that their current account spending does not outstrip the current inflation rate or risk overspending.
Many people in the UK have had no choice but to raid their savings accounts or resort to the use of credit cards in order to make ends meet throughout the global economic downturn. However, Informed Choice chartered financial planner, Martin Bamford, recently cautioned Brits to do everything they possibly could to not go over budget.
The Office for National Statistics recently announced that the consumer price index remained steady last month at 4.5 per cent. This is a far cry from the Monetary Policy Committee’s 2 per cent target for inflation – and even further from the actual 0.5 per cent base rate as set by the MPC.
Despite this, Mr Bamford commented that there were plenty of ways Brits could reduce their expenses, even in an environment with rampant inflation. However, individuals need to be willing to make alterations to their spending habits in order to accomplish such an endeavour.
In related news, another financial expert has recently said that Brits should avoid the use of credit cards to make everyday purchases, especially younger consumers.
Debt Advice Foundation managing director, David Rodger, said that trying to limit credit card use could pave the way for younger Brits to save more for the future. Money management is the most important message to pass on to the younger generation, Mr Rodger noted.
The managing director said that younger Brits in their 20s and 30s should treat their income and expenditure with the highest scrutiny and avoid borrowing cash. He advised that consumers should only buy what they can afford – and only when they can afford it.