Save, spend, save again!
Since March 2020, the UK population’s view on money and savings no doubt came into sharp focus when Boris announced that we had gone into lockdown. For many this will have brought numerous worries – the health fear first and foremost but probably a close second would have been ‘how will this affect me financially?’ or ‘what if I lose my job?’.
Whilst it has been reassuring to see that those who have been able to have increased their savings habits during the pandemic and are now putting more money aside to build up that financial cushion should it ever be needed, we now need to be mindful that with society re-opening and lockdown restrictions being relaxed or removed, we do not switch back to old habits.
Hello socialising, holidays and fun times!
With more freedom and summer holidays to enjoy, comes the luxury of socialising, staycationing (or taking the plunge abroad), and generally fun times. What we mustn’t forget, and this is not meant to be a killjoy, is that the Government are keen to impress that the pandemic is not behind us.
So, whilst an increase in your social life is no doubt in full flow, it’s important to be mindful that you should still set aside those all important savings and continue with that savings practise of ‘save, spend, save again’!
Save, spend, save again with Foresters
During 2020 and 2021, here at Foresters Friendly Society we have seen a significant increase in new members joining us to place their hard earned money into savings plans for the mid-long term. These types of investments, which pool savers’ money in a with-profits fund which invests in a variety of assets, offer a higher potential of returns than their cash-equivalents, like Cash ISAs, however the key is really to hold the money in the plan for as long as possible.
What is particularly pleasing is the sharp increase we have seen in younger members joining us to save into a Lifetime ISA for either their first home or retirement.
The money invested into our Lifetime ISA, which is designed for savers aged between 18 and 39 years of age and benefits from a 25% government bonus, has increased in the first half of 2021 by 212% when compared to the same time frame in 2020. This is an encouraging sign that younger people are also living by the ‘save, spend, save again’ motto as well as our members investing into ISAs, Bonds, Tax Exempt Savings Plans and more.
As more of society opens up and we hopefully continue in to a new ‘normal’ which may well include a switch to more regular home working and the associated financial benefits it can bring, it will be wise for savers to continue to build a financial cushion to ensure they have future financial security should it ever be needed so any doubts faced at the start of the pandemic, are never to be repeated.
So, set the intention now:
Save, spend, save again!
Plan returns are not guaranteed and will depend on the performance of our Order Insurance Fund and how we decide to distribute any profits. Capital at risk.