Do financial concerns keep you up at night? It can be tough to get some shut-eye when your finances are weighing on your mind, but it isn't always the likes of debt that can stop people from getting a good night's sleep – a lack of savings could be a significant concern, too.
No safety net
Research from StepChange found that people with money worries lose an average of 11 nights' sleep per year, with nearly one in seven being kept up at night. Now, a new study from TopCashback.co.uk has highlighted the concerns most likely to keep people awake, with around a quarter citing savings as their biggest financial worry.
This concern applies to all age groups, albeit with a slightly different emphasis: 21-40 year-olds worry most about their lack of savings, but between the ages of 41 and 60 this changes to worrying about not having enough money for retirement, while those aged 60+ are most worried about not being able to maintain their current standard of living. The underlying theme is clear – savings, or a lack thereof, is a worry that can affect us at all stages of life.
The figures also revealed that 60% don't have the recommended three-month safety net of savings set aside for an emergency, and only half have a savings pot set aside for a rainy day. Just 45% put money into a savings account each month, but despite worrying about a lack of savings, 41% of those surveyed admitted to splurging on purchases that they didn't need, couldn't afford, or later regretted.
Get a good night's sleep – start saving!
While many Brits are savvy when it comes to saving money – 80% of those surveyed shopped in the sales, around half buy in bulk, and 45% shop out of season – the key to ensuring a good night's sleep is to put that extra cash into a savings account. Building up an emergency fund should be at the top of the agenda, and after that, you may like to start on a rainy day fund. Both of these could benefit from an easy access account that doesn't penalise you for making withdrawals, and if you've got something big you want to save up for, consider a fixed rate bond for higher returns.
You'll want to utilise your ISA allowance, too, particularly if you're thinking long-term and want to build a suitable pot to help fund your retirement. But, no matter what your goal may be, the key is to get started. Even putting away small amounts can soon add up, which can give you valuable peace of mind – and hopefully, you'll sleep better as a result.
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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