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Brits urged to think about financial safety nets

Brits urged to think about financial safety nets

Category: Income protection

Updated: 26/11/2012
First Published: 17/01/2012

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 It is now over 6 months old so the content may be out of date.

Britons have been told now might be a good time to improve their financial safety nets after it was revealed a third of adults spend more than their salary or only manage to break even each month.

A new study by Bright Grey showed that one in ten British adults claim to spend more than their net monthly salary on a regular basis, equating to around 4.9 million people.

Meanwhile, a further 11 million (23%) only just about match their outgoings to their salary, with nothing left over at the end of the month.

On average, Britons spend £1,315 a month, of which £232 goes on supermarket and other shopping and £56 on telephone bills.

However, the insurer warns that the average of £30 a month which is spent on protection insurance products each month is probably not enough for something that could be vital to their finances in the future.

"There is no doubt that 2012 is going to be a tough year for consumers, and the fact that a third of people currently have no money left at the end of the month is a worryingly fragile situation to be in," explained Roger Edwards, proposition director at Bright Grey.

"At a time when money is so tight, consumers should really think about their outgoings, how they can support themselves and their families in the best way, and protect themselves against any future financial difficulties, as times may get worse."

The study also found that in terms of large 'one-off' products and services, the average Briton spends £885 a year on holidays, £214 on big ticket electrical goods such as TVs, cameras and iPods, and £151 on white goods such as fridges and freezers.

"By cutting back slightly on some of their outgoings, most adults should be able to find a small amount of money to help provide the financial safety net they may need in an emergency situation," added Roger Edwards.

"For just a few pounds extra a month, consumers can safeguard their financial future by investing in a protection product that will provide for themselves and their family should they lose their job or their health, for example."

Why not see how much it could cost you to protect you and your family financially should the unforeseen happen?

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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.