Save where you can.
By Ben Yearsley | 08 Jul, 2008
Two interesting reports were released recently, both intrinsically linked. The first was from Scottish Widows who announced that one in three Britons can not afford to put aside any savings for their retirement. An unsurprising fact given the current state of the economy with rising taxes, oil and energy prices and falling house prices.
A separate report from MoneyFacts estimates that the average smoker who gave up this time last year could have saved over £3,000 in the intervening twelve months. Without wishing to sound like Scrooge, there are many little things in life that could be cut down in order to boost your retirement and savings pot. Cigarettes are the obvious candidate but even having a few less coffees a week at your local coffee shop could leave you with £500 more in your pocket at the end of the year. Even small amounts like this can add up over the long term. Saving £40 a month (your coffee bill) could add up to a pot of £6,500 after ten years if you invest that money and it grows at 6% per annum. Cutting out cigarettes over the next ten years could yield a pot of over £38,000 on the same basis.
Obviously this is just a couple of areas where money can be saved. It is becoming increasingly apparent that self provision for one’s own retirement is vital. With ever increasing demands on spare cash at the moment, maybe it will be the luxuries in life that go as many sensibly choose to save for their future.
