You need to earn more than £21,888 per annum to be able to save

There was some interesting research from Birmingham Midshires published today, suggesting that 55% of people in the UK do not think they earn enough to save.

The average amount British savers think they need to earn in order to be able to afford to put money away in a savings account each month is £1,824. However, a third (33 per cent) of Brits cited £2,000 or more as the minimum monthly salary they needed to earn to be able to afford to save.

Almost one in ten (8 per cent) people would not put away savings unless they were pocketing an annual salary of £36,000.

It is interesting that the ability to save is often linked to earnings rather than the gap between income and expenditure. Making this gap as wide as possible is the best way to put yourself in a financial position where you can save money each money.

Earning a higher salary is one way to increase this gap but what often happens is a simultaneous increase in expenditure. When people earn more, they spend more!

With savings rates now looking at their highest level for six years, exceeding 7% for some one year fixed rate accounts, now is a great time for savers who can make that gap between income and expenditure just a little bit bigger.