Exposing Your Savings to the Wrong Risks

Are you exposing your money to the wrong kind of risk without even realising it?Everywhere you look online, people are talking about the power of investing—even the government has launched a "savvy squirrel" campaign to encourage it. But what happens when you skip step one?In this episode of Mouthy Money, we dive into a brand-new report from Leeds Building Society that reveals a massive blind spot in how we manage our money. Nearly a quarter of us are either leaving our rainy-day funds exposed to sudden stock market drops, or letting inflation quietly eat away at our future wealth in cash traps.Join us alongside Catherine Wray (Head of Saving at Leeds Building Society) and Chris Tuite (Head of Consumer Finance at MRM Communications) as we discuss the critical importance of building a rock-solid savings buffer before you even think about investing. We cover how much you actually need, the emotional peace of mind an emergency fund brings in an era of "perma-crisis," and how to stop inflation from eroding your hard-earned cash.If you want to protect your money today so it can grow tomorrow, you don't want to miss this! Let us know in the comments: How big is your cash savings buffer?Chapters00:00 – Intro: Are you taking the wrong financial risks?00:20 – The Leeds Building Society report: A huge blind spot in UK savings.01:10 – Guest Intros: Catherine Wray (Leeds Building Society) & Chris Tuite (MRM).02:30 – The Mismatch: Why we confuse short-term needs with long-term goals.03:40 – Market Corrections: Why 68% of people are scared to invest.04:10 – Is Cash a "Trap"? The emotional return on investment (peace of mind).05:00 – The Competence Gap: Why we get basic financial questions wrong.05:25 – The "Savvy Squirrel": Criticisms of the government’s investing campaign.06:05 – Chris’s Strategy: Managing money in an era of "perma-crisis."07:35 – The Cost of Comfort: How a large buffer impacts long-term pension growth.08:50 – Why the Boiler Always Breaks: The reality of emergency expenses.09:45 – Rules of Thumb: The 3-to-6 month savings target.11:10 – Stop "Languishing": Why your current account is losing you money.12:45 – Gamifying Savings: Using regular savers to build momentum.14:15 – Strategy: Utilizing Cash ISAs and fixed-rate bonds.14:50 – Important Update: Changes to the Cash ISA limit coming in April.16:30 – Defining the Goal: House deposits, pensions, and long-term plans.17:30 – Wrap-up: How do you set your savings level?MOUTHY MONEYOur substack mouthymoney.substack.co.uk Get in touch ⁠⁠[email protected] ⁠⁠DISCLAIMERThis video is produced for general informational purposes only. It should not be construed as investment, legal, tax, mortgage or other forms of financial advice. If in any doubt about the themes expressed, consider consulting with a regulated financial professional for your own personal situation. Past performance is no guarantee of future results. Investments can go down as well as up and you may get back less than you started with. Investments are speculative and can be affected by volatility. Never invest more than you can afford to lose. For more information visit ⁠⁠⁠www.fca.org.uk/investsmart⁠. Please note, video captions are auto-generated and may not be 100% accurate.