A staggering six million homes wouldn’t be able to survive for more than five days on their current savings if their regular income stopped.
The shocking findings from first direct, the online based bank, reveal that six million households have less than £250 in savings, giving them less than six weeks’ worth of funds to live off.
With the average UK monthly household outgoings currently standing at £1,536, the £250 in savings would only last for approximately five days.
Shockingly, a fifth of households have no savings whatsoever. Those aged between 25 and 34 are the least prepared for financial emergencies, with almost 40% having less than £250 in savings.
A further 30% claim to have nothing set aside for emergencies.
Bruno Genovese, Head of Savings at first direct commented; “These findings demonstrate a worrying lack of financial preparation among the British public. With the current climate of uncertainty, it is of utmost importance that families are setting aside a realistic sum of money to be used in emergencies. As a general rule it is advisable to have 3 month’s salary set aside in accessible savings for a rainy day.”
“By putting away small amounts each month Britons can help themselves build up an emergency savings pot as provision for any eventuality without having to rely on a solution that will get them further into debt.”
Women are the worst at saving, according to the research, with 24% confessing to having no savings compared to just 16% of men.
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Those in the North East are least likely to have any cash set aside, with a third admitting they don’t have a financial safety net.
Many also confess turning to loans or credit cards to cover monthly rent or mortgage payments. In case of redundancy, 11% of people would use their overdraft to survive.