Finances need to be prioritised

The fact that people prioritise emotional commitments over finances could be why many are failing to get the best savings interest rates, it has been suggested.

John Lawson, personal finance expert, said that some people have their priorities wrong and should spend more time thinking about their money in order to improve their financial situation.

"Our research shows that [consumers] spend just about half an hour a day thinking about money matters and yet two hours twenty minutes thinking about emotional commitments," he explained.

"The two things are the wrong way around."

That is not to say that people should not be thinking about their emotional commitments, Mr Lawson clarified, but only that they ought to spend more time considering their money matters in order to have funds left over for the best savings interest rates.

David Rodger, managing director of The Debt Advice Foundation, agreed that creating a budget is essential.

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2011-09-15 13:08:00 © Moneyextra.com