Take control of your finances, savers told

Those looking to take advantage of the best savings rates must take steps to get a grip on their finances, an expert has advised.

Martin Bamford, managing director of Informed Choice, has highlighted the importance of taking control and budgeting in order to make the most of the money people earn.

He warned that this could be a scary prospect but that those with a money-based goal – whether saving or reducing debt – should take the plunge.

It is important for people to "tear off the sticky plaster and get on with it", he claimed.

This could take the form of making a concerted effort to open bank statements or examining bills for credit cards as soon as they arise.

Mr Bamford said that the fear of getting to grips with one's finances is often worse than the situation really is but acknowledged that this task is rarely fun.

What is most important is the decision to begin dealing with these problems and to gain control over them, he claimed.

Voluntary ignorance and denial are the major obstacles and by changing one's approach people can begin to address their problems.

His comments follow remarks by Credit Action chief executive Michelle Highman, who claimed that Brits often struggle with financial planning due to a lack of budgeting skills.

One way to enforce the need to budget was recently highlighted by Martin Rutland, spokesman for ING Direct.

He said that he always found it far easier to put money into an account with the best savings rate straight after payday, removing the temptation to spend.

Mr Rutland suggested that setting up a standing order so that this is done automatically would be a good way of achieving this.

"If I don't see it, I don't miss it quite as much," he said.

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2011-11-23 12:43:32 © Moneyextra.com