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Financially unsound: Sorting out finances at the bottom of the UK’s ‘to-do-lists’

More people rank getting fit above paying off their credit card bill as their most pressing ‘life admin’ task September 2, 2013: Financial planning is the task we are putting off the most when it comes to our everyday ‘to-do lists’ according to a new report  released by the Payments Council, the organisation spearheading the new Current Account Switch Service that is launching in September. The...

More people rank getting fit above paying off their credit card bill as their most pressing ‘life admin’ task

September 2, 2013: Financial planning is the task we are putting off the most when it comes to our everyday ‘to-do lists’ according to a new report  released by the Payments Council, the organisation spearheading the new Current Account Switch Service that is launching in September.

The Life’s Long List report*, has been put together using research from a Populus study of 2,085 UK adults. It reveals that whilst bills focus the mind in the short-term, with nearly two-fifths (18%) of us putting ‘paying off our credit card bill’ in our top three most pressing items, planning for the longer-term continues to be left for another day.

Although saving for a rainy day is important for many people – 35% of people include it on their daily ‘to-do list’ – only 5% of us ranked financial planning tasks, such as reviewing pensions or moving their bank account, at the top of their lists. This is a  telling sign of the short-term view that seems to govern much of our financial lives.

The research reveals that it’s not because we don’t know how; half of us think it would be easy to switch a utility provider for a better deal and 24% think it would be easy to review their pension. It is more that we don’t want to do it now; 24% of people claim they would feel overwhelmed if they had to move their bank account for a better deal, 23% if they had to change utility provider and 20% if they had to review their pension.

Social psychologist and life coach Dr Gary Wood who co-authored the report that looks at the nation’s approach to our everyday ‘life admin’ said:

“Where finances are concerned we tend to be more reactive, than proactive. For many people, finance is just paying bills, which has a negative association. In short, we focus on getting-by rather than getting ahead. Often we simply can’t see the benefits of taking time out to plan our finances.

“Paying money out gives us a kind of ‘financial fatigue’ and we don’t want to prolong the agony. We need to wise up to the long-term benefits of sorting out our finances rather than searching for short-term rewards.”

Moving bank accounts for a better deal features on 16% of our ‘to-do lists’, a task that will be made easier from September with the launch of a new Current Account Switch Service. This new service aims to increase competition in banking, making it simpler, quicker and hassle- free for customers to switch their current account.

Adrian Kamellard, Chief Executive at the Payments Council said:

“Our finances can ultimately govern our futures, especially in these tough economic times, and taking time to make them more of a priority can have significant benefits. Managing financial products and services can often be viewed as overly confusing and complex and this is something we’ve aimed to address with the new Current Account Switch Service that is launching in September.  The new service will make it simpler, easier and hassle-free for people to switch to a new current account deal – ticking one more thing off the list.”

Most pressing items on people’s to-do lists:
Task % people ranked as top priority:
Doing more exercise 13%
Doing home improvements and DIY jobs around the house 11%
De-cluttering – donating to charity or friends and family 10%
Paying off credit card bills 9%
Taking care of chores around the house or garden 9%
Eating more healthily 7%
Start to save regularly for a rainy day 6%
Planning a holiday 6%
Making time to apply for a new job 5%
Reviewing lifestyles e.g. cutting back on smoking or drinking 5%

About Gary Wood
Dr Gary Wood is a social psychologist, life coach and author of ‘Unlock Your Confidence’. He specialises in translating evidence-based psychology and coaching for individuals and organisations and is a regular media commentator. His motto for life coaching and life in general is ‘little by little, a little becomes a lot’.

Gary has taught psychology, learning skills and research methods in several UK universities and has published numerous academic papers and reports. His previous coaching and goal-setting book ‘Don’t Wait For Your Ship To Come In . . . Swim Out To Meet It’, has been translated into several languages. Gary is a Fellow of The Higher Education Academy, a Chartered Scientist with The Science Council, a Chartered Psychologist with the British Psychological Society and a full member of its Special Group in Coaching Psychology. He is based in Birmingham and Edinburgh where he has his coaching, training and research practice. In his spare time he eats, sleeps, reads and occasionally sings.
Current Account Switch Service
The Current Account Switch Service is launching in September this year. It will be a free-to-use service for consumers, small charities, small businesses and small trusts, and is designed to make switching current accounts from one bank or building society to another, simple, reliable and hassle-free. For the first time, the Current Account Switch Service will be backed by a new Current Account Switch Guarantee, supported by UK banks and building societies. The new service aims to give customers a first-class switching service, whilst increasing competition in the high street and supporting the entry of new banks in the current account marketplace.

Source : Payment Council

– See more at: http://www.internationalfinancemagazine.com/article/Financially-unsound-Sorting-out-finances-at-the-bottom-of-the-UKs-todolists.html#sthash.hiWiG7fs.dpuf

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