Everyone worries about money at some time, but a new study suggests people are concerned about the small things that don’t really matter rather than the big picture.
It’s hard to escape the constant flow of news about the economic implications of Brexit, inflation and fears that the bills won’t get paid or consumer remorse about spending too much shopping for stuff that’s not needed.
But there are some big financial decisions that can really impact on saving that never cross the minds of most people.
Paying the mortgage is probably a major concern for most people.
Skewed financial choices
But home owners have skewed financial choices. Although new research from Legal & General reveals average consumers spend more than a week looking for a new car, they only take three days to pick a mortgage that they will keep for up to 25 years.
Credit bureau Noddle discloses in a study that one in four homebuyers plump for the first mortgage they are offered and a fifth are lumbered with a deal they wish they had rejected.
A quarter of borrowers are paying the lender’s standard variable rate and could save up to £230 a month by switching to a fixed rate deal. That would free up more than £27,000 over a decade.
Tracking savings and helping financial firms find you by regularly making sure your contact details are updated helps savers keep in touch with their cash.
Making an effort
Most people have 11 jobs in their lifetime and regularly move home, which means easily losing touch with accounts over the years.
Being more clued up about pensions can boost retirement income. Legal & General points out that shopping around for the best drawdown and annuity rates can make a huge difference – hiking retirement cash by up to 30% or £6,400 on an average pension pot of £21,400.
So why don’t more people make the effort to improve their finances?
A lack of knowledge about financial matters and a reluctance to take professional advice are two factors that mean some people are not making their money work hard enough for them, say financial firms.
