Thrifty Brits reduce spending by over £3,000 per year
According to new research conducted by Abbey Savings, it would seem that the British are intending to save their way through the recession. Despite falling Bank of England interest rates and the reduction in VAT, the majority of consumers are cutting back on their expenditure. In fact, only 13 percent claim that their spending has remained unchanged.
Director of Savings and Investments at Abbey, Reza Attar-Zadeh, commented: “In the current climate many people are determined to tighten their belts. It can be surprising how even making a few small changes to our way of living, such as buying a cheaper brand of food or ditching take-aways in favour of making something from scratch, can add up to hundreds or even thousands of pounds in savings over the course of a year.”
Abbey’s research revealed five key areas in which people are planning to curb their spending. 69 percent are reducing the amount that they spend on food by means of purchasing cheaper brands or by shopping at a cheaper supermarket, which is saving them an average of £17.10 per week. 61 percent are refraining from going out as much, which is saving them an average of £19.47 per week. 51 percent have decided to alter their holiday plans by going on day trips as opposed to going away, which is saving them an average of £229 annually. 46 percent are walking or cycling more rather than using the car or public transport, which is saving them an average of £17.27 per week. Finally, 35 percent have switched financial products to make savings, which is saving them an average of £139 annually. To summarise the extent of the savings being made, Britons have each lowered their expenditure by an impressive £3,168 during the course of the past 12 months.
In terms of which generation is being the most frugal, it may come as surprising news that those between 18 and 34 are tightening their purse strings more so than their seniors. Within this young group, spending has been reduced by £3,599 during the past 12 months. In contrast, those over the age of 55 claimed to have saved £2,773 of their annual expenditure.
Abbey’s research also revealed that people are most likely to reduce the amount spent on food, regardless of their location. The top three methods of saving money include opting for cheaper goods in the supermarket, reducing the number of take-aways purchased and reducing the number of meals out. These are common across all regions of the UK. However, where other methods are concerned things aren’t quite as consistent. For example, 40 percent of those living in the Midlands claim to be using their car less whereas only 20 percent of Londoners are cost-cutting in this way. Nevertheless, 31 percent of Londoners do appear to be taking advantage of nearby forms of entertainment by making the most of free services such as libraries, museums and outdoor concerts. Just 20 percent of people are doing this in the North, Yorkshire and Humberside.
Those whose finances are tight a result of the recession may wish to consider taking out a secured loan to consolidate existing debts. This finance option could be a solution for those that are juggling multiple, confusing monthly repayments. A secured debt consolidation loan could be used to tie up all those existing debts into one simple, potentially lower, monthly repayment. It should be remembered however, that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
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