The UK is in need of shifting culturally towards saving more cash into personal or business bank account products designed to save money, one expert has recently said.
Financial specialist Alan Easter states that more Brits simply must begin depositing their hard-earned cash into at least one of the several savings account products available in the UK currently.
Mr Easter, who is private investment firm Honister Capital’s strategy director, stated that the behaviours and attitudes of British consumers towards their saving habits is in need of a change. However the financial expert also stated that this will not happen unless consumers gain a better understanding of how more enhanced savings products – such as ISAs – work.
Because the current post-recession economic climate in the UK has led to very low interest rates on savings products, it’s that much harder to get a return on your investment, Mr Easter stated. This lack of return has become a contributing factor to the low levels of savings activity for the country at large, which concerned the financial adviser.
In related news to Mr Easter’s comments, data published recently by friendly society LV= has revealed startling results. The research study commissioned by LV= found that lifestyle-related spending on luxury expenditures, such as going on holiday, have reached a new plateau this year.
Despite households tightening their budgets, LV= found that the average yearly expenditure on luxury expenditures was £5,629.
Additionally, the society’s Lifestyle Inflation Index research found the cost inherent to these lifestyle-related “essential” expenditures rose by a rate of 4 per cent from January to August of this year. This figure actually exceeds the current official Consumer Price Index inflation rate of 3.1 per cent. Additionally this expenditure increase outstrips the pay packet increase rate of the nation, which is currently only 1.7 percent by more than half.