1 in 4 women are hiding a considerable sum of cash from their partner- according to research done by Auto Europe. Typically women are stashing away £2,768 that they are purposefully keeping from their partner.
The research went on to reveal the reasons for the secret stash – 31% were savings for an exotic holiday but scarily 23% were saving in case they needed an “exit strategy”.
Whatever your reasons for saving here are some hints and tips to make it work hard for you:
- Don’t always go for an ISA over a regular cash account. If you are a basic rate tax payer you have a Personal Savings Allowance of £1000 per year. This means that you can earn £1000 per year in interest before you pay any tax. High rate tax payers get a £500 allowance, whilst additional rate tax payers do not benefit. Therefore is a regular savings account is paying more than your existing ISA, most people will be better off switching and claiming on your savings allowance.
- Have the right amount – most people should have 6 times their monthly outgoings as their cash target. On top of this, you should add any lump sum expenditure for the next 5 years – i.e. a car upgrade, a big holiday etc.
- Set up a direct debit/standing order into you savings accounts the day that you get paid. That way the money is out of mind and out of sight.
- Put an annual task in your diary to make sure that you review your savings accounts. Banks do not reward loyalty, therefore you need to make sure that your rates are not dropping off a cliff without you realising!
Lastly, the research I read from Auto Europe also mentioned that the average female would need at least £21,164 to set up a new life away from their current partner. I can’t get my head around this figure (it seems too much to rent but too little to buy), but anyway it’s a lot more money than the average woman has saved.
Lots of Love