Inflation is rising. Prices are spiking. And, we’ve descended into a cost-of-living crisis.
So, it’s about time us Brits adapt the way we’re spending our money. But first, we need to know exactly where you’re spending your dough.
This is where Online Betting Guide’s (OLBG) Discretionary Spend Index can help.
OLBG researched the top 12 categories for discretionary costs, and found the average Brit is spending over £13,000 a year on luxuries.
‘Do It Yourself’ (DIY) projects, motoring, and eating out are just a few of the culprits, according to OLBG.
So, what can we do about it?
Luckily, there are some fantastic money-saving hacks you can use to safeguard your savings, which we’ve narrowed down to the top 10.
Fuelling, maintaining, and buying our beloved motors account for almost a quarter of our entire discretionary spend.
So why not start lowering your car’s fuel consumption. Try lowering the car’s weight load, use it less often, and avoid leakage when re-fuelling.
Make the necessary adjustments to lower your total consumption, and spare some expense.
It’s hard to beat a glass of wine in the evening, or a cool beverage on a hot day. But it gets a little easier when you realise we’re spending over £500 annually on alcohol.
Try swapping your usual brands for cheaper alternatives. The taste difference is incremental, but the savings are big.
And buy your beverages from stores as opposed to restaurants or bars, as these tend to be much cheaper.
The average Brit spends over £260 on gambling, and although this hasn’t changed much from 2019-2020 (less than a fiver), you can start lowering it now.
It’s highly advised that you read OLBG’s detailed guide on responsible gambling.
This will help you have an enjoyable betting experience, which doesn’t stretch your budget past what you can afford.
- Mobile phones
Mobile services have seen a 14% increase in average spending since 2019-2020.
As phones become more prevalent in our lives, it doesn’t mean we can’t find ways to use them more cost-efficiently.
One of the simplest, yet most effective ways, is to choose a different mobile provider. Before you sign a contract, be sure there isn’t a deal somewhere else that’s easier on your wallet.
Here comes the real kicker. DIY was found to be the biggest money cruncher out of all 12 categories, accounting for almost a quarter of our entire discretionary spend.
As home improvements boomed over lockdown, it seems this is where majority of our cash is going.
The biggest tip is to ensure whatever project you take on, you do it correctly.
This will save tons of money you’d have to spend on replacing tools and materials, correcting any sloppy mistakes, or even re-doing entire sections of your project.
Building a better bank balance is as much a DIY project as any!
Whilst this may be the least of all the spend categories – being 0.3% of our spending – streaming services are still a hefty cost these days.
So be vigilant with your subscription plans.
With the average Netflix plan costing £10.99, for instance, it would be beneficial to pause any subscriptions you’re not currently using.
This stops multiple services emptying your account at once, when you’re only wrapped up in one service which has your new favourite show.
Now we’re all suckers for a good holiday, more so now after the pandemic.
However, is that really enough to justify over £1,500 spent a year on getaways? Especially when there are so many things you can do to easily lower the cost.
Here’s a great idea – get yourself a deal!
There are so many great holiday packages every season of the year. Snag yourself an absolute steal, so your wallet can have as much of a relaxing break as you.
- Pet management
Pet management is a constant expense for us pet lovers in the UK – to be specific, £242 a year.
We absolutely adore our pets, but not so much the immense outgoings.
To make it easier on your finances, make sure you’re buying the best pet food for your beloved animal.
Not only does this mean finding a cheaper alternative to the expensive brands, but more nutritious food means less vet visits and bills.
- Eating out
It’s easy to lose track of how much we’re spending on eating out, especially when the food is so scrumptious.
But there are ways you can prevent the current cost of just under £1,000 on restaurants, leaving your account each year.
Try looking for great deals on your favourite spots. This could be a 2-for-1 deal or 20% off on weekdays.
A simple use of deals, but a significantly smaller bite out of your bank.
One of the best tips for beating this cost-of-living crisis, is to keep up with the Discretionary Spend Index from OLBG.
They plan to provide quarterly updates to the Index, detailing exactly how us Brits are spending our disposable income during this crisis.
If that’s not a secret weapon against the cost-of-living crisis, what is?