People increasingly saving for "a rainy day"

People are beginning to think more seriously about their spending habits, according to Alliance and Leicester.

Hetal Parmar, manager for savings at the financial services provider, states they are thinking more about ensuring they have money set aside for "a rainy day".

The expert explains that a good rule of thumb is to have around three months' income set aside, which could be accrued through using international payments systems to build up a nest egg.

He suggests that such an amount is useful "if your car breaks down or if there is a hole in the roof or whatever" as this ensures there is a lump sum to fall back on.

"I think more and more people are starting to think that way," the sector commentator concludes.

Mr Parmar's comments follow the publication of research by Abbey Credit Cards, which suggested people disposable income has dropped by nearly 30 per cent over the past two years.