It is getting more and more important for people to save – to put substantial sums aside for retirement, a ‘rainy day’ or for those big life changes. State retirement support is gradually reducing, shifting the onus onto individuals to provide for their own long-term financial security. At the same time a recent increase in stockmarket volatility has forced many investors to consider alternatives for them to continue to build wealth to cover the growing costs of major life commitments such as raising children and university fees.

And yet against this backdrop, saving is fast becoming a thing of the past, a luxury many of us think we can no longer afford. A recent survey by IFA Promotion revealed that over a quarter of people believe they are unable to save anything at all, and four out of ten of us say we couldn’t save any more than we already are.

With ‘low-cost’ credit easily available for most people, consumer borrowing has risen to record highs over the past few years. This ‘spend, spend, spend’ culture is leaving an increasing number of people living beyond their means. Another survey also showed that in 2005, 73% of UK adults replaced major items over the last twelve months – buying a new car, upgrading a home entertainment system, splashing out on home furnishings or on new mobile phones – all of which were items that weren’t broken and didn’t need to be replaced.

But this ‘borrow and spend’ attitude cannot continue indefinitely. If we are to stand a realistic chance of financial security further down the line many of us need to rediscover the lost art of budgeting – in short, saving needs to become the new borrowing.

Taking a good look at your monthly income and outgoings, and redressing the balance between a ‘want’ and a ‘need’, could leave you with more spare cash than you thought – cash which can be squirreled away each month can soon build up. Also, cutting down on those costly luxuries that often pass unnoticed could make a huge difference to your long-term financial security.

At SB Asset Management we do not want to radically overhaul the financial lifestyle you currently enjoy. We simply want to help you become more aware and plan to protect you from the financial predicaments that can await you if you do not exercise prudent planning.

So what are you waiting for? We could start by showing you some scary data on ‘The cost of delay’ but we’d prefer you to take a few moments now to review your spending, consider what you could be saving, and start paying yourself first – put a bit aside for yourself, no matter how small. It’s time to get saving!