Consider money management steps, financial analyst advises

By Sarah Engle, Tue 16 Sep 2008 - Published in Banking

A research analyst has suggested that people need to examine their personal finances over coming years as economic conditions worsen.

Defaqto suggests that people take one hour a week to plan their finances and takes steps to reduce any non-essential spending, such as takeaway food, satellite TV subscriptions and smoking.

In addition, the organisation reminds people of the need to meet their credit card's monthly payments, while those with high levels of savings could consider offset mortgages to make their money go further.

The analyst also pointed out the importance of some financial products, saying home insurance is needed to protect houses and their contents while car insurance is a legal requirement.

In a statement, Defaqto said: "It is time to return to the old days of seriously managing your money. If you aren't doing so already you need to start saving, even small amounts will help."

Yesterday (September 15th), research from American Express suggested UK savers would consider cutting their spending on financial products if living costs increases, with family savings plans, ID theft protection and payment protection insurance being the most likely to reduced.

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