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Do you ask for help with personal finances?

Do you ask for help with personal finances?

Category: Money

Updated: 28/04/2015
First Published: 28/04/2015

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

When was the last time you asked for help when it comes to managing your personal finances? For some, the answer will be never – and that could mean you're sacrificing your long-term security.

Research from Legal & General has revealed that 69% of those surveyed have never asked friends, family or professional advisers for help in managing their finances, with 9% of those admitting that it was due to a lack of confidence, not knowing where to turn or being too embarrassed to ask.

However, this could be a huge mistake, as the research went on to reveal that a number of people would sacrifice their long-term financial security in favour of daily luxuries should they experience money troubles, with this 'going it alone' mentality potentially having long-lasting consequences.

For example, the figures show that 33% would rely on their savings to compensate for a permanent reduction in income, rather than reducing their spending on non-essentials such as TV subscriptions, phone contracts or gym membership.

Indeed, 51% of those surveyed couldn't live without internet, 36% needed a mobile phone, 17% wouldn't give up their Sky or Virgin Media contracts and 7% wouldn't turn their back on the gym, while holidays (12%), personal grooming (11%) and shopping for new clothes (9%) also made the list of must-haves.

This could have worrying consequences. If your income was reduced for any reason, using your savings to cover these kinds of luxuries could mean your pot soon runs dry, and without the right planning, it could be difficult to recoup that loss.

"Money can often be a cause of stress and feel too confusing to tackle, meaning many people make ends meet rather than think positively about what a difference financial planning could make to their lives," said Nigel Wilson, CEO at Legal & General.

This is why it's so important to seek suitable advice should you find yourself in financial difficulty. By considering your long-term goals rather than your short-term happiness, you may be more inclined to sacrifice the likes of TV subscriptions and the odd holiday in favour of saving that cash for your future, and speaking to someone about your finances could help you to visualise things better.

At the very least, try to be ruthless with your expenditure. Do you really need that gym membership if you rarely head to the gym? Could you downgrade your broadband and TV package to save a few pounds every month? If you put anything you're able to save straight into a dedicated savings account, you could soon notice the difference, which will hopefully give you the motivation to continue and reach your long-term goals.

What next?

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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