The Centre for Economics and Business Research (CEBR) has reported in the Times that the average household increased their savings by £7,100 during 2020 and although many households suffered a fall in income, they also made sure that they spent less!
Overall spending was down 14% and savings have been doubled.
The CEBR conclude that the average household has saved 19% of their income in 2020 compared to just 7% last year and that’s a great thing.
We all need to get into the savings habit and of course, as soon as times get tough as they have been this year, we all immediately start building a nest egg because we realise how important it is.
As a country the UK is one of the least savers in the world and hopefully one of the positives to come out of Covid will be the savings habit as we’ve all been reminded how perilous our finances are when we spend all that we earn.