Scots are taking more control of their finances in challenging times - Brian Byrnes
We spoke to Scots from all walks of life to understand how people are tackling their finances in 2023, and how behaviours and habits have had to change to cope with the rising cost of living. The message was unanimous – the past year has been tough financially. Half (50 per cent) of you said you have less money to spend on the things you enjoy, and 42 per cent are struggling to save money regularly.
But in every crisis there is always hope. One in five (20 per cent) people living in Scotland say they were able to achieve all their financial goals for 2022, and for nearly a quarter (24 per cent) while they did not achieve all the financial goals they set at the start of 2022, they were happy with the progress they had made towards money matters.
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Hide AdFor many Scots, 2022 saw a financial first as well. In 2022, 18 per cent of people in Scotland invested in something other than a savings account or a cash ISA, with many doing so for the first time. Why? People told us they wanted to grow their wealth over time (33 per cent), and others (33 per cent) want to benefit from investment returns as interest rates remain relatively low despite recent increases. Another third (30 per cent) enjoy it as a hobby. Even more encouraging, half of Scots felt more confident about investing their money in 2022 compared to the previous year.
Scots took many other steps to manage their finances and an immediate place for many to start was cutting back on non-essential spending. 34 per cent are choosing to go out less and 33 per cent spending less on unnecessary items. 31 per cent set and stuck to a strict budget, and 29 per cent increased their efforts towards budgeting. Other strategies included working overtime (28 per cent), selling unwanted items (28 per cent), starting side hustles (20 per cent), and shopping second-hand (20 per cent) – making considerable changes to lifestyle and habits to be resilient in the crisis, and proving determination to take control of the financial situation.
By adopting positive financial habits like budgeting, tracking expenses, and setting achievable financial goals, we can effectively manage our money and regain control. These habits and behaviour changes can help us all achieve our financial goals and provide a sense of financial security over time.
In 2023, financial awareness and empowerment is more important than ever before
So, what does 2023 look like? Well money is still very much firmly on our minds. 28 per cent of Scots say building a rainy-day fund is their number one financial priority, followed by saving enough to go travelling (23 per cent), becoming financially secure to start a family (18 per cent), and starting to invest (18 per cent). Financial awareness and empowerment are crucial to this.
Investing can be daunting so it’s more important than ever to foster financial awareness and empower ourselves to take control of our financial futures. Knowledge is power, and that’s certainly true when it comes to our finances. Knowing how to make your money work harder to help you achieve your short-, mid- and long-term financial goals is empowering and freeing. Finding reliable sources of financial education will always help, and speaking to a financial adviser where necessary are all investments we make in ourselves for the future.
We’re all striving for a stronger financial future and it’s positive to see the financial challenges endured in the last year have prompted so many Scots to take more control of their spending, saving and investing, and start planning for their future.
Brian Byrnes, Head of Personal Finance, Moneybox
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