Worried about money? This may lead to saving less!

25 April 2012 10:35:21

Most people worry about money at least once a year.

If you spend more time worrying about your financial situation than planning your budget, the chances are you may be doing more harm than good. New research shows that the worriers among us tend to save much less than those who focus on managing their money.

Many do more fretting than planning
Many Brits spend more time worrying about their lack of cash than thinking about how to save the money they do have, according to the latest research from NS&I Savings. The financial provider's survey of more than 1,200 adults suggests that among those who worry at least once a year, more than two-fifths spend more time stressing out about their money than planning what to do with it.

Worriers also seem to adopt a 'head-in-the-sand' approach, as one in 10 people who fret about their finances on a daily basis admitted that they only check on their financial situation once a month.

Planners save more than worriers
Unfortunately, this propensity to worry rather than plan appears to be counterproductive in most cases. The research found that Brits who spend their free time worrying about their money problems save significantly less than those who focus on planning what to do with the money they have.

NS&I's research revealed that, on average, people who tend to worry save just £53.47 a month, while those who plan instead set aside £104.39 - almost twice as much. This means that the average 'planner' saves over £600 more per year than the average 'worrier' - enough to pay their gas and electricity bills for six months.

Take time to manage your finances
The survey findings underline the benefits of devoting time to financial management, according to John Prout, a spokesman for NS&I Savings. He explained: "By taking the time to manage your finances and setting realistic budgets and savings goals, people can reduce their financial worry. If you have a good friend or family member who doesn't worry about their finances, why not ask them what works for them?"

Mr Prout also recommends shopping around for financial products, as this can save you money and help you build up a more sizeable nest egg.

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