“The three pots” – my interview on BBC Radio Essex this morning

MoneyHighStreet.com is reaching people far and wide, I’m delighted to say, and has even been noticed by the BBC.

BBC Radio Essex kindly asked me to visit them to be interviewed about personal finance for their morning show.

They were interested in my views about the news published in the Guardian on Tuesday, that household savings are at a 16 year high.

Saving, not spending could slow down economic recovery as retail and manufacturing sectors are not receiving an influx of new orders, the Guardian article says.

To comment on such a wide subject matter seemed a bit daunting, however Dave Monk, the presenter was excellent at keeping me on track.

Where do the three pots come in then?

Well, during the interview we were discussing that a sensible balanced approach was required to help pull the UK out of the recession.

People should think of their finances as being in three pots, I suggested.

Pot one was for savings.

Pot two should be for paying off your debts as much as you can, particularly credit card debt, and sensibly overpaying the monthly mortgage.

Pot three, if there is anything left for it, should be for spending.  That is our personal boost to the economy.

I think this is a great approach, actually, and I hope the listeners of Essex benefit from it too.

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