13th November 2014
The equivalent of nine million Britons, are regularly stashing away money in jam-jars and envelopes in a bid to ensure they have enough cash for their important outgoings new research has found.
The survey from budgeting account service think money also found that less than half of the people questioned transfer money from one bank account to another to make sure they do not spend the cash they need for their essential outgoings.
Of these, 78% transfer the funds to a different bank account – either their own or a joint one – and just over one in five, at 22%, transfer it to another person’s account, like a partner’s.
Although different, both of these methods ensure that cash is physically kept to one side so that consumers are not caught short when it comes to paying their most important bills.
But just of half of respondents, at 53%, revealed they rely on brain power alone to ensure their bills are covered, by saying they “mentally” set aside the money they need in their account.
Ian Williams, spokesman for thinkmoney, said: “It may sound quaint, but millions of people still find that putting the cash needed for bills somewhere they won’t spend it – like in a jam jar or an envelope – is an effective way of budgeting, although it’s not very secure. However, some people may also feel it’s less of a hassle than transferring the money between accounts each month.”
But Williams warned that relying on memory alone, on the other hand, may not be the best way to save.
He added: “Household budgets today can be extremely complicated, with many people having multiple incomes coming in each month and numerous bill payments going out, and if you only mentally set aside funds you may find you lose track and end up spending what you need.”