Martin Roberts discusses mortgage holidays during pandemic
Whether it’s for a financial milestone such as getting on the property ladder or setting aside spare cash in case of emergency, saving is something many people strive to do. However, the temptations of everyday life can no doubt mean savers encounter obstacles during the process.
Treating oneself here and there is a decision some may take for a wealth of reasons – but it seems non-essential spending soon adds up.
Staggeringly, analysis has found British households could save nearly £2,000 per year, if they halved the amount they spend on “non-essentials”.
Using Office for National Statistics data, Atom has calculated that if British homes halved their outgoings on things such as takeaways, beauty treatments and alcohol, they could save £1,899 annually.
Edward Twiddy, Chief Customer Officer at Atom bank comments: “With the huge changes we’ve seen in the financial climate this year as a result of COVID-19, it’s more crucial than ever before for people to understand their finances and how to get the most out of their earnings.
We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.
“Through our research we want to highlight the value and importance of spending money on things that will bring long term happiness.
“Trips away, being together, experiencing something new and shared fun are crucial for each of us, but their cost can sometimes make them appear beyond reach.
“So we wanted to show that these life affirming moments are possible, whatever you might be able to afford. With products such as our Instant Saver account you can open a savings account with £0, get the same great rate no matter how much you save, and not face any limits or penalties on withdrawals.
“With the benefits of saving for something special really clear, we’re aiming to make the whole process easy, accessible and rewarding for everyone.”
Saving is a habit which Deana D’Monte, from Kent, has become well-versed in.
The single mum paid off her mortgage at the age of 42, and has since shared her story.
“My secret was thinking ahead,” she shared.
“I had watched people all my life work hard and not be able to pay off their mortgages until they retired and I didn’t want to be one of them.”
So, how did she go about reaching mortgage free status?
Ms D’Monte said: “At 18 I moved from London and bought a dump in Norfolk.
“A derelict rundown house with horsehair lined walls that hadn’t been touched in years.
“I turned the house around in 18 months (whilst working a full-time job) and sold it for double what I paid for it.
“I did this over and over, whilst moving closer to an area that I wanted to live in until I finally got my four-bed, two-bath house by the sea, mortgage-free at 42.
“It was tough going as a single mum to two for most of that time but I kept my eye on my goal and kept moving toward it. I cannot tell you how good it felt to finally own my own house outright.”
Now mortgage free, Ms D’Monte gave an insight into her saving – and spending – habits.
She divulged: “I have an emergency fund for if the washing machine etc. goes bang. I try to keep that topped up.
“I got rid of all credit cards 10 years ago – I refuse to run up debt. If we want something, we save for it.
“I try to wait for sales before I purchase. I also have a ‘fun’ pot I put any spare (if there is such a thing) money in, then we use that if we want to do something fun.
“I cook from scratch always – healthier and cheaper.”
Source: Read Full Article