I noticed the results of some research that was published on a few sites today with some interesting statistics that made me think. Did you see this?
My first reaction is to be impressed that, on average, Britons now have £10k+ in savings, having seen an increase over lockdown periods. Of course, using one number like this hides that it varies widely, and that over 20% of people in this country still have no real savings at all.
I was interested in the idea that there is a single “pot” figure of £17,465 that everyone needs to aim for to be ‘financially secure’ and that you need to be measured by, no matter where you live in the country or what your aspirations and requirements are … but that’s averages for you again.
That aside, it was enlightening to see the results of the survey question:
“What would make [people] feel more financially secure?”
It is understandable that having more cash savings is top of the list (37%), but paying off debt is then second (25%). I presume (hope?) these must be separate groups, as it doesn’t make much financial sense to have larger cash savings (earning virtually 0% interest) while still paying interest on debt (excluding things like mortgages, etc).
It is also heartening to note that 19% mentioned having more money in investments, which I presume may have been those with the higher balances or more secure jobs, but they don’t give this breakdown.
It left me wondering whether it is useful to give “financial security” a specific £ value, or whether it should be about whether we feel we have a process (of saving money regularly and building wealth) that will keep us going over the long run. That’s Financial Wellness (to me).
What were your thoughts?