How Will Londoners Handle Their Finances in 2013?

Recent research by thinkmoney has revealed how people in London are planning to manage their finances in 2013 – compared to the rest of the UK.

Londoners’ financial priorities can be broken down into three key areas: budgeting, long-term financial planning and repaying debt. Let’s have a look at these areas in a bit more detail.

Budgeting

54% of Londoners said that sticking to a budget is a priority for them in 2013 – which is only just lower than the national average of 55%.

38% are determined to look for cheaper tariffs on costs like gas, electricity and mobile phone contracts – perhaps to free up room in their budget.

Repaying debt

31% said that repaying unsecured debts (like personal loans, overdrafts and credit cards) is important to them in 2013. 22% plan to pay off their mortgage this year.

Longer-term financial planning

Londoners’ priorities for longer-term financial planning include:
• Starting a savings account – or saving more (41%)
• Paying into a pension (28%)
• Writing a will (26%)
• Taking out insurance (21%)

How your bank account could help

An expert from thinkmoney said: “It’s clear that people in London have their sights set on a number of financial goals.

“If you want to get your finances in order this year, your bank account could help.

“Simply look at your budget and set up Direct Debits so that a set amount of money automatically leaves your account every month into your savings account – or wherever else you want it.

“If you’ve been considering switching your bank account – like 19% of Londoners – it’s worth considering what kind of account is right for you.

“For example if you want a very simple account – or you’re trying to get back on your feet after your credit rating has been damaged by something like bankruptcy – a basic bank account might be suitable. Some accounts come with perks, such as a built-in budgeting service or cashback.

“Having the right bank account could help you keep track of your money – so you can keep your financial resolutions throughout 2013.”

[This post was supplied and sponsored by ThinkMoney. Image courtesy of Images_of_Money]