British savers have had it incredibly rough this year as coronavirus continued to impact the economy and the difficulties have impacted people’s relationship with their finances. Recent research from HyperJar found that as many as 79 percent of British people feel they don’t have a healthy, happy relationship with money.
Respondents from the same research also shared they would need as much as £752 each month to feel financially comfortable and debt-free.
Additionally, on average, consumers are owed £607 by friends and family,with baby boomers owed almost double that at £1,188, further adding financial stress to people’s lives.
Worryingly, one in three people spend all their take home pay within the first week of the month according to HyperJars analysis and even those on relatively high salaries of over £75,000 are struggling.
Mat Megens, the CEO and founder of HyperJar, explained: “It’s easy to think we’re fated to be ‘bad with money’.
December is likely to be a particularly difficult month for consumers, with analysis from Plum, the savings app designed to help people put money away, showing a typical household spends over £800 extra in the final month of the year.
With all this expense, many consumers will be keen to get their finances on track as 2021 begins, with it likely being a new year’s resolution for millions.
Fortunately, Plum shared a unique money saving plan which can help people save over £1,300 over the course of a year.
The “52 Week Challenge” is based on the idea that tucking money away little-and-often can help people set more aside in the long-term.
Jess Williams, a Product Lead for Growth at Plum, commented on this plan: “This one is deceptively difficult.
“You start out easy and it gets really tricky towards the end! The key to success is the way it’s broken down into manageable chunks.
“Increasing deposits in small increments means the difference is less noticeable, so it can help you gradually adjust to paying more over time.
“This has been proven to be way more effective than asking for £1,378 up front in the first week!
“If you’re at all competitive, this is a great one to try with your friends, as you’ll be able to egg each other on.”