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Do you feel in control of your finances?

Unsurprisingly, 59% of us feel that our financial health impacts our well-being. 

And one of the major causes of financial stress is a sense of being out of control. Just 4 out of 10 people feel as though they have control over their finances. 

This page shares some honest views about money and some ideas to help you take back a bit of control. 

"You feel, as adults, we should be more on it". 

 

John leaves it all to his wife, the 'straight man' but has a nagging feeling that he should be doing more. 

Anna told us she felt 'ashamed'. And Sian thought that 'to invest and get anything meaningful, you have to have this huge chunk of cash.' The enormity of it all meant she never got started. So she had never investigated or found out more, quietly worrying about the lack of savings she had or any sort of retirement plan. Sound familiar? 

Small steps

Having a sense of financial control is knowing what to expect and avoiding nasty shocks. It's a delicate balance between avoiding stressful short-term pinches with saving little and often for the future. 

  • Get debt help
    Debt can be a crippling burden to bear. The Government-funded Money Advice Service is a good place to start and read up on some ideas and where to go for help. 

  • Build at least 3 months' income in cash 
    Most financial advisers will recommend we build a rainy day savings account with 3- 6 months' salary in it. Consider a different account to your current account for this and look at the best easy access cash rates. Apps like Moneyhub, Monzo and Starling Bank allow you to set up savings goals that are protected from you daily spending. 

  • Look after the pennies
    Check your direct debits. Are they all still for wanted and needed services? Consider switching gas and electricity providers who often give loyal customers the worst deals - have a look at uswitch or other comparison sites. 

  • Work out what your State Pension would be
    Retirement stresses many people out. The Government has an online service which gives you a forecast of what your State Pension will be. Understand this first.

  • Consider stocks and shares for longer-term savings
    Lots of people are not in debt but also have money sitting limply in a current account, slowly sliding backwards as inflation nibbles away at it.  Look at a robo adviser for a simple way to set up a stocks and shares ISA.

Holly's tip: "Don't think you have to get everything in perfect shape on Day One. Even chipping in £25 a month to a stocks and shares ISA or a private pension and taking this first step can make people feel so much better. Saving is a habit and you just have to start, however you can and however inadequate the amounts might feel at first." 

 

Investor Pulse - what you told us

Every year, BlackRock ask people from all over the world, including the UK, how they think and feel about their financial health.

This year, they went deeper than ever before to understand the connection between our financial health and well-being. 

Conducted at a time of unique political, cultural and social upheaval, this edition of BlackRock’s Investor Pulse seeks to better understand how these forces affect financial health.

When it came to control you feel over your finances, this is what you had to say:

  • Only 41% of us feel like we have control over our financial situation
  • 30% admit that doing a better job of balancing their needs today with their needs in the future would make them feel better about the financial health
  • Currently just over half (56%) of Brits report a positive well-being, with 59% of us feeling our financial health impacts our well-being 

    Visit BlackRock to learn more about Investor Pulse.