Essential expenditure `leaving people unable to save`

10 November 2008

Due to the high cost of living in Britain, many consumers are currently unable to build up savings, an expert has said.

Steve Folkard of AXA said that some people do not have any money left to put away - potentially safeguarding them from future financial problems and debt - once they have covered their household bills and expenditure.

However, he added that consumers should not assume it is impossible to save in the first place as doing so can be rewarding.

He went on to advise: "Spend one hour per month - or just fifteen minutes a week - planning and reviewing your finances."

Research conducted by AXA last month found that more than 20 million households have been eating into their savings since the turn of the year and that only those who earn more than £52,785 after taxes and benefits are deducted have avoided spending beyond their means.

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