With prices rising left, right and centre, it might be time to consider tightening the purse strings.
But where and how can us Brits be savvier with our cash, and start saving some money?
It doesn’t have to be cutting out everything and anything in order to save enormous sums of money. Instead, by doing a little bit here and there over the course of a day, you can seriously see the cash add up.
But in what areas can you be smarter with your spending?
Online Betting Guide (OLBG) have recently conducted research into the average annual expenditure of a UK adult, and curated the Discretionary Spend Index.
The Index covers 12 popular consumer categories where the UK public like to splash the cash, comparing the spend on these categories to previous years.
The OLBG Index revealed we’re in fact spending over £13,470 a year on discretionary costs — equal to around £1,122 a month. This is 62% more this year than in 2019/2020, where we spent just under £8,300 of our disposable income on these areas.
With this in mind, let’s take a look at some tips and tricks you can apply to your daily life, to cut the costs of your discretionary spend.
Join us on our journey as we spend the day as a money-saver!
Cut the coffee queues
Let’s start off with a classic morning coffee.
The average UK adult spends £924 a year on eating out, including drinks from cafés, according to the OLBG Index.
This costs around 7% of our income (after-tax) each year.
Plus, from January 2022, the average takeaway coffee in the UK jumped from £2.75 to £3.57 (based on the price of a cappuccino).
So why not brew your own coffee at home?
The easiest way to save money on your favourite caffeinated drink, is to try instant coffee instead.
Make your coffee in a reusable cup before you leave for work, and not only can you save the money you would have spent in a coffee shop, you can also save the time you would have spent in the queue.
If you really don’t like the idea of cutting out your trip to the café each morning, why not switch to a cheaper alternative when you’re there? Perhaps go for the least expensive drink on the menu, or order the smallest size to help reduce costs.
Make your own fake-away
It’s now time for lunch.
It can be so easy and tempting to head out on your lunchtime break for some fast food. Or better still, have something delivered right to your door if you’re working from home.
Based on the research by OLBG, the average UK adult spends over £644 on takeaways in a year, taking up 4.7% of our disposable income.
This is also a huge increase compared to 2019/2020, where we spent just £153 on door-to-door food deliveries.
So why not make your own version of your favourite takeaway? There are plenty of online fake-away recipes, which can massively reduce your spend, and taste just as good as the real deal.
A regular money-saver would also batch cook lunches for the whole week, so you always have your food prepared, and reduce the temptation to grab something quickly from a fast-food restaurant.
Travelling here, there and everywhere
In the day of a money-saver, you’re always on the hunt for the best and cheapest offers, including when filling up the car.
It should come as no surprise that we’re spending more and more on fuel, with record-high prices at the pump. In fact, according to OLBG, we’re spending almost a quarter of our after-tax income on motoring and transport, including fuel costs — equally nearly £3,260 a year.
This is where it’s best to shop around. Don’t always go to the most convenient petrol station, as this may be the most expensive option. Driving a little further could mean saving some pennies when filling up.
Chilling of an evening
Your day of money saving is nearly coming to an end, and it’s time to sit down and relax in front of the television.
But a money-saver’s job is never done. Do you know how much you’re spending on streaming subscriptions?
The OLBG Index discovered we spend an average of £49 a year on streaming our favourite TV shows and movies.
This may only cost us 0.3% of our annual after-tax earnings, but it’s one of the easiest areas to reduce spend.
Why not take a look at your current subscription plan and see if you can opt for a cheaper alternative? You can spend less each month if you choose the budget plan, especially if you don’t need things like ultra-HD streaming or viewing on multiple devices.
Same great shows but for a lesser price. What’s not to love?
These are just some of the ways you can start cutting costs each and every day, but with these handy tips you can begin your journey to become a fully-fledge money-saver!