Consumers urged to focus on financial management

Consumers should spend more time managing their finances as they bid to maximise their income and reduce costs, it has been suggested.

Alison Morris, savings expert at Scottish Widows, said that although the recession is over, the importance of having a financial cushion to fall back on is "at the front of a lot of peoples' minds".

However, she said that many people are continuing to bury their heads in the sand where financial planning is concerned.

"By planning their finances carefully now, they could avoid a lot of this worry in the long-term," Ms Morris stated.

"We know money is tight for many people at the moment, but spending a bit more time on their finances instead of ignoring the problems can only serve to make them feel more financially secure in the future."

She claimed that if UK consumers do not plan for their financial futures now, there is a danger they will not have enough to enjoy a comfortable retirement.

Last week, the Investment Management Association provided some encouraging news about the nation's savings habits, reporting that a record number of Isas were opened during the first quarter of 2010.

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2010-05-04 13:51:03 © Moneyextra.com