Has the financial blues got you losing hope for a secure future?

Has the financial blues got you losing hope for a secure future?
25th August 2022

Has the financial blues got you losing hope for a secure future?

“You may not always have a comfortable life, and you will not always be able to solve the worlds problems all at once, but don’t ever underestimate the importance you can have. Because history has shown us that courage can be contagious, and hope can take a life of its own” – Michelle Obama

Time after time, you hear about overcoming the financial blues and saving to secure your future, but how to do that when your finances are tight, and you see no end in sight.

The cost of living is one of the most significant factors driving financial despair as the costs of essentials such as food, energy, and petrol have soared. According to Money & Pensions Service, 16 million people in the UK have inadequate financial well-being; 31% of adults do not have a good financial relationship with money, which means they are not fulfilled with their life because of their current financial situation. In addition, a third (36%) have admitted to having financial worries when contemplating money concerns.

Furthermore, Trussell Trust charity which are running one of the foods banks, has stated that the main form of debt is currently to the government, with almost half of individuals they assist receiving debt deductions such as advance payments. Advance payments are paid if a Universal credit applicant opts for an advanced payment while their application is being assessed or council tax debts are deducted from their benefits.

Recent data collected by the Joseph Rowntree Foundation has shown how debt is becoming a common issue for people struggling to cope with the increased cost of living. Participants in the bottom 40% of low-income households were surveyed, which found that 4.6 million households had at least one bill they could not pay on time.

The study also found that in the last seven months borrowing for personal matters doubled and that 1.3 million households used credit to cover essentials such as food.

MaPS encouraged people to start 2022 with a financial reboot and try ‘Couch to Financial Fitness’, a free and adaptable course launched in 2021; a 10-week online course to enhance their relationship with money week by week on the Money helper website.

Research has indicated that those with financial well-being are more likely to be content with their lives than those with the highest salaries.

One in two adults (45%) in the UK do not feel confident in controlling their finances daily, according to research conducted in 2021 by Money and Pensions Service for a Financial Wellbeing Survey 2021.

Moreover, according to Sky News, a march occurred to protest the increased cost of living as people expect the government to do more. This march happened as the UK prepared for more significant disruptions to public transport as more strikes were on the way after discussions had not managed to resolve disputes over job losses, salary and working conditions. During the march, songs such as ‘I need a dollar’ and ‘Money, Money, Money was played as part of the protest. The TUC revealed that research had shown that employees had lost £20,000 since 2008 because inflation has increased faster than pay.

How to weather the storm of financial blues:

  1. Brainstorm with family/friends

    Regular meetings with family or friends can be held to brainstorm ideas about saving or earning money methods that could be applied to everyday life, such as selling what you no longer use in a car boot sale or on an online selling app. Research can also be conducted together as a family on coping with financial constraints and how this could be applied to managing finances.

  2. Savings calculator

    Some websites have a savings calculator so that savers or potential savers can calculate how much to save and how long it could take to save this can come in handy if a person has a specific goal but are not sure how much cash to set aside.

  3. Budget plan

    One of the best ways to manage finances is to create a budget plan that covers both a saving and spending strategy. Prioritise a saving strategy by deciding on an amount to put aside and depositing into a saving account; if circumstances change, adjust the amount or up or down. Then include the spending strategy with roughly how much per week is spent on expenses such as food and transport.

  4. Talk to a councillor

    Talking to a councillor about struggles with finances and how this could be having an impact on mental health may be helpful as this will give an outlet to vent frustrations

  5. Talk to someone you trust

    Sometimes talking to a trusted friend or relative about financial struggles might help because they will listen, which may be an effective method to unload financial troubles; they may also have some suggestions that may be useful for handling finances.

  6. Time your grocery shopping

    The longer the grocery shopping spree, the more likely that money will be splurged on the items or food that are not needed; therefore, write a list of what is required beforehand and leave as soon all the items on the list have been obtained

  7. Research into the best saving accounts/and other saving alternatives

    Please research different saving accounts by reading our guides on saving accounts and other types of investment on the money tips section of our website. Also, research and go into different branches in your spare time to find out what saving products and interest rates banks have on offer. Or download the Intellisaving app to compare the highest interest rates in different saving categories offered by several banks and building institutes.

  8. Download a savings app

    Different apps have different uses, and a saving app such as Intellisaving is handy because it helps you keep on top of your finances through easy integration of multiple interest-bearing and saving accounts to the one sole platform ‘Intellisaving’. The platform has a bouquet of features for users to explore, such as a Personalised portfolio that breaks down your finances by displaying information such as balances and returns for each type of account. The dashboard feature displays your portfolio summary and allows you to explore available accounts to compare the best interest rates in the market.

    The website has a catalogue of articles on money-saving tips which cover different topics such as ‘The rising confidence of savers in saving products in current scenario’ and ‘Is it good to be a penny pincher?’

  9. Seek financial advice if you need it from an expert

    The advice can be sought from a financial expert or the Citizens advice bureau, and listings for financial experts can be searched in a local or national newspaper, online search, or phone directory if you find you need some extra assistance.

    The UK government website has information on debt, redundancies, and benefits. And dismissals also have pointers about writing a CV, planning your job search and online applications.

  10. Keep a progress diary

    Keeping a record of your journey throughout your financial journey can be a form of tracking progress; a to-do list can also be written on how to handle your finances and tick them off as you go along.

    The current state of the economy is leaving many individuals hopeless, as the doors feel as if they are closing in, and every time they try to turn the handle, it stays locked. However, most challenges have a solution, and if individuals are proactive in trying to overcome current trials faced and refuse to give up, they could turn the page to better financial security. This is because although these are challenging times due to the increase in inflation and cost of living soaring there is still some support out there for those struggling the most, and organisations where advice can be sought. In addition, the introduction of saving apps such as Intellisaving means that people can organise their finances more efficiently and, at the same time, increase their knowledge and awareness of financial matters through the articles on the Intellisaving website. Where hope is not lost, there is always the possibility of coming out the other side.

“When everything seems to be against you, remember that the aeroplanes take off against the wind, not with it”- Henry Ford