![\"Money](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/09\/1_GENERIC-MONEY-COSTS.jpg\")
Experts are encouraging ‘small, regular savings'(Image: Pixabay)<\/p>\nExperts are encouraging ‘small, regular savings’Experts are encouraging ‘small, regular savings'(Image: Pixabay)<\/p>\n
A savings pot of \u00a32,000 can be a lifeline to households, significantly reducing the risk of falling behind on bills, a study suggests. Those with this financial buffer could have 60% lower odds of falling behind with bills and have a lower risk of problem debt than an equivalent household with less than \u00a3200 put away or no savings at all, according to the research from the University of Bristol\u2019s Personal Finance Research Centre.<\/p>\n
Having one month\u2019s income put by potentially reduces the odds of falling behind with bills by nearly 75%, the research suggests. The research was commissioned by the Building Societies Association (BSA) for UK Savings Week (September 22 to 28 2025).<\/p>\n
The study was based on analysis of data in the Understanding Society survey, enabling researchers to track the finances of about 7,000 people over a 10-year period. While the report highlighted \u00a32,000 as an important protective threshold, it also suggested that this target should not be seen as a minimum requirement.<\/p>\n
Researchers found that even saving \u00a3200-plus could potentially lower the chances of financial problems. It also found that having a basic savings account in the first place can be a \u201cgateway\u201d to people opening other financial products, such as Isas and investments.<\/p>\n
Households with a mix of savings and investment products were five times more likely to say they were living comfortably than those with none, the research indicated. Setting a savings goal that is realistic and achievable for someone\u2019s personal circumstances, and saving regularly, can be crucial to success, the research indicated.<\/p>\n
Andrew Gall, head of savings and economics at the BSA said: \u201cWe appreciate that for some families \u00a32,000 may feel out of reach right now. But the research has demonstrated that even small, regular savings, such as \u00a310 a month, will build resilience over time and improve people\u2019s wellbeing.<\/p>\n
\u201cJust as important, the findings show how a simple savings account is often the first step to achieving longer-term financial goals. People with good savings habits are far more likely to go on to have other savings and investments, which in turn can lead to positive outcomes such as becoming a homeowner.<\/p>\n
\u201cAnd this report makes clear that there\u2019s more we can do. From payroll savings to better financial education, there are practical steps that can help the nation have better savings habits. Everybody\u2019s savings journey has to start somewhere.\u201d<\/p>\n
Sara Davies, associate professor at the University of Bristol and part of the research team said: \u201cThis research reaffirms the protective effect of holding a financial buffer, giving households a bit more room for manoeuvre should they face an unexpected expense or shock to their income.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Experts are encouraging ‘small, regular savings’Experts are encouraging ‘small, regular savings'(Image: Pixabay) A savings pot of \u00a32,000 can…\n","protected":false},"author":2,"featured_media":167975,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,184,185,10894],"class_list":{"0":"post-167974","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-finance","12":"tag-personal-finance","13":"tag-personalfinance","14":"tag-your-money"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/167974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=167974"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/167974\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/167975"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=167974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=167974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=167974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}