More than four out ten people have built themselves a good safety net by saving as much as three monthsí salary for a rainy day, research has found.
Three monthsí salary is the recommended amount that people should have tucked away, but this is easier said than done. If you are struggling to save money, you can compare savings accounts with Money Expert.
Research by the Financial Services Compensation Scheme (FSCS) has revealed that, despite the rising cost of living, many Brits are still able to put money aside.
It was found that 43% of Brits have three monthsí wages in savings ñ the amount that experts recommend everyone should have as a safety net.
A further 21% said they know this is the amount that they should have set aside, but it is proving difficult for many to save in the face of high living costs.
Despite a reassuring four out ten people managing to save the recommended amount, 27% of Brits said they have no such safety net to fall back on.
The research found that those in the North East are the most likely to save, with an impressive 61% saying they have three monthsí wages saved up. This is compared to just 34% of those in the North West.
Those who are self-employed were more likely than most to be saving the recommended amount, with 55% saying they have reached the three-month target.
ìIt is encouraging that people are following the experts’ advice to pay down high interest debts and, if they can afford to, keeping money aside for a rainy day,î said Mark Neale, Chief Executive of the FSCS.
ìThese savers should ensure their money is kept in an FSA-authorised institution so their money is protected by the FSCS up to the £85,000 deposit limit. If the worst was to happen, people would get their money back within seven days so there really is no need to worry.î
You can compare savings accounts with Money Expert.