Just One In Four Brits Are In Control Of Their Finances

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 - 61% of women who make a budget fail to stick to it -

Just one in four (25%) British adults currently budget and manage to stick to it, with women least on top of their outgoings, according to research from IFA Promotion, the organisation promoting the benefits of independent financial advice.    

A further third of people (31%) say they try to budget but fail to stick to it, because they are either unrealistic or cave in to temptation too often.  14% of adults have never tried to budget, 16% worry that they need to start budgeting soon, and one in twenty have abandoned all hope of controlling their spending.

David Elms of IFA Promotion commented, “The twin ideas of budgeting and thrift seem almost lost to history; and while over half of us claim to work to a budget, most are unable to stick to it in the face of temptation.  The uncomfortable fact is that few people can expect the Bank of Mum and Dad to bail them out if borrowing costs rise, and the State no longer provides a comfortable retirement for those who refuse to save for the long term.”

Women are far worse at sticking to their budgets (61% of women who work to a budget fail to stick to it, compared to 49% of men).  19% of women would like to follow in Colleen McLoughlin’s footsteps, finding spending far more fun than saving, while 28% of women admit getting into debt to fund luxury purchases, like the recent case of Rosie Millard.  As a result of this poor planning, just 23% of women believe they could salt away any more money than they currently do, despite the UK’s multi-billion pound savings gap.

However budgeting could well be the key to financial success, as people in low income groups are only half as likely to budget as those at the other end of the scale (22% compared to 11%). So it seems the rich get richer at least in part by taking more care of their money, like super-wealthy Jennifer Lopez who reportedly doesn’t believe in tipping.  

4 out of 5 married men’s spending habits are influenced by their wives

Partners or spouses actually have most influence on our spending habits (44%) but for married men this jumps to eight out of ten (79%) proving they are more financially under the thumb. In comparison, only two thirds (66%) of married women are influenced by their husbands and are almost equally affected by their family (61%).

Older may mean wiser

Over 55s are three times as likely to stick successfully to a budget as under 25s (35% compared to 10%), although a third of these young people are worried that they will have to start budgeting soon.

Elms continued, “Being on top of our finances has never been so important, but people are increasingly living hand to mouth and storing up trouble for the future.  It should take about an hour to note down regular income and outgoings and to identify what you can and cannot afford.  If you need further help taking financial control and planning for the future, sitting down with an independent financial adviser is a great place to start.”

IFA Promotion has produced a free guide to budgeting and saving, Join the Savings Revolution, available by calling 0800 085 3250.  People can also access the guide and an interactive budgeting tool at www.unbiased.co.uk/getsaving

-ends-

* IFA Promotion’s survey was conducted by BMRB, Sept-Oct 2004, among 2,061 UK adults. With detailed queries call Paul Hersey on 01737 216 940.

For further information please contact:

David Elms                                               Liz Willder/Chloe Merriman

Chief Executive                                        Lansons Communications

IFA Promotion                                          020 7294 3677 / 020 7294 3681

020 7833 3131

    For expert comment or case studies from over 200 media-friendly IFAs, journalists should call IFA Promotion’s Media Services hotline on 020 7294 3682 or search online in ‘Media Services’ at www.unbiased.co.uk

1.  Independent Financial Adviser Promotion

IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public.  It represents around 9,000 firms of independent financial advisers across the UK and is sponsored by 30 leading financial institutions. In 2004, over 440,000 consumers and businesses used IFA Promotion to find local independent financial advice.

IFA Promotion believes Independent financial advice should be:

·        Affordable.  The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.

·        Convenient.  IFAs should be available in the location of the consumer’s choice, wherever they live in the UK.

·        Transparent.  It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.

2.      Independent Financial Adviser Promotion’s sponsors

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