Britons failing to budget despite two-thirds having worries over money

NEARLY two-thirds of people are worried about their finances but the majority are failing to take simple steps to improve their position, a survey has found.

Around 43 per cent of people said they worried about money "more often than not", while 17 per cent said they worried about it all the time - a total of 70 per cent - according to the Institute of Financial Planning (IFP) and National Savings & Investments (NS&I).

Only 3 per cent of those questioned said they never worried about money, a significant drop from the 12 per cent who gave this answer when the same research was undertaken in 2009.

Nearly half of people admitted they found it difficult to make their money last until they were next paid, with women more likely to struggle than men.

But despite being concerned about money, only 14 per cent had taken time to identify their financial priorities and plan towards them - down from 26 per cent two years ago - while 27 per cent admitted they had never drawn up a budget.

Instead, 33 per cent said they were counting on winning the lottery to improve their financial situation.

The research, carried out to coincide with the start of Financial Planning Week, found that 84 per cent said they were not prepared to borrow to fund Christmas, claiming they would cut back instead.

Nick Cann, chief executive of IFP, said: "If people want to steer a smooth course through these challenging economic times, it would appear their chances look gloomy."

YouGov questioned 2,084 people during September.