I was intrigued by the Daily Mail headline (20 February 2017) that a quarter of households have less than £100 in savings. So I took a look at the report this was taken from: the AVIVA Family Finances Report January 2016.
The 3 things that really stood out for me were –
Average household debt is up.
1 in 5 families have made no financial provision for the future.
“Almost half of parents have not discussed what might happen to their family if the worst was to happen to them.”
If any of this applies to you, to quote one of my favourite movies
• Most debt is taken on variable rate lending and most people are on fixed incomes.
• As the future comes your ability to earn will likely diminish
• Over 500,000 people a year die in the UK so 1 in every 128 people are likely to die in any given 12 month period.
To quote another of my favourite movie
“…death and taxes…what an odd pairing…”
Odd but true! All financial planning has to take into account the need for tax free lump sums especially in the aftermath of the unexpected death of a ‘bread-winner”.
This lump sum will invariably be eaten into by the need to pay off debts.
I am not preaching. I am just trying to tell it how I wish I had been told when I was starting out.
• AVOID/REDUCE DEBT.
• PROTECT YOUR FAMILY AGAINST YOUR UNTIMELY DEATH.
• PUT SOMETHING AWAY EVERY MONTH FOR THE FUTURE.
I know it’s a struggle. I know it takes time. I also know of the tragedy of loss and the fear that comes with an unknown future.
If you are in this sort of situation please do something about it today. If you need help or guidance email me. I will do my best to help.