Looking to build up savings

April 2nd, 2009

With unemployment now at an all time high, breaking the 2 million mark the country needs its attitude towards money to change. What we don’t need is people being careless with money, wanting to borrow what they can’t afford. We need savers that are careful with money. It’s sad that it’s the savers that are now being punished with amazingly low interest rates. People who have saved hard are seeing their savings earning them next to no interest in some accounts, while people who borrowed large amounts receive very low repayments.

As I have just secured a job I’m thinking about saving. With my wife on a temporary contract that finished as the end of the school year I would like to have a little bit of money saved just to tide us over. It will also give her chance to think about what she would like to do as she’s not sure about carrying on teaching.

We did have savings, but they have all been put into the house one way or another. Putting money into property to reduce debt seems to be popular at the moment. Apparently the UK as a whole has paid off £8 billion of debt at the end of last year. This is the reverse of the previous trend of taking equity out of property to fund luxuries.

I like the idea of security that savings brings with it. With the world of employment and finance a complete mess it’s nice to know that even if everything goes down hill you have a way to support yourself. Even if savings rates are at an all time low there are still benefits to having savings. It brings a comfort that means you do not have to worry about money and you will be able to afford the next bill that falls through the letterbox.

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