ii comments on personal finances during Covid-19
Our expert takes a closer look at the latest ONS opinions and lifestyle survey.
26th May 2020 14:34
by Myron Jobson from interactive investor
Our expert takes a closer look at the latest ONS opinions and lifestyle survey.
Commenting on findings of the Office for National Statistics' (ONS) latest Opinions and Lifestyle Survey, Myron Jobson, personal finance campaigner at interactive investor, says: “The ONS has published a series of reports to assess the real impact of the pandemic on people and communities – and it is clear to see that household finances have not gone unscathed during the crisis.
“Hope for the best but prepare for the worst is an adage worth remembering in times like these when the financial toll of the pandemic remains a mystery. With the parameters of coronavirus still unknown and a possible second wave of coronavirus, things could get worse before it gets better.
“Question marks still remain over job prospects once the furlough scheme ends at the end of October and it is important to build up a financial buffer to ensure that your finances can weather the choppy waters that may lie ahead.
“Having three months’ worth of salary stashed away to ensure you can stay financially afloat in a disaster is a good rule of thumb – although those able might want to double that in these trying times. But the ONS findings show that while many people think now is the right time to save, only about 40% of people thought they would be able to save money in the next 12 months which reflects the financial quagmire faced by many at present.
“And while those struggling with expensive debt due to the current crisis have been given something of a reprieve, it’s worth using that three month breathing space to take a look at your personal finances and see where you might be able to make some savings: whether that’s researching and comparing utility providers, looking into cutting down on expenditure more generally, debt consolidation, and more. Keeping an eye on your everyday expenditure always throws up a few surprises – for example there could be some long forgotten direct debits for services you no longer want – data storage is a classic, because there are free alternatives.”
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