Skip to content

Cost-of-Living: what are People Cutting Back on?

The rising cost-of-living has been an increasing issue – in the past few years, the UK alone has seen an increase of up to 25%. Prices of everything are on the up, and almost daily. However, families still have to maintain their livelihood in some way. Cutting outgoing costs is the only answer for families looking to survive and with almost 80% of households reining in their personal finances, crunch time is certainly upon us.

In fact, it is now estimated that 80% of all 22 to 35-year-olds work full-time while still looking for ways to spend less. If you find yourself in this situation, here are some of the most popular methods people are using to reduce their living costs.

Budgeting

© wutzkohphoto / Shutterstock

Reducing Energy Use

Energy costs throughout the UK have risen up to 80% in some areas. That is a significant rise, but when you factor that up to half of a home’s monthly expenses are generally devoted to heating, that number is astronomical. Contending with the rising energy costs can be daunting, but more homeowners are working to reduce their energy costs by turning off and unplugging devices throughout the home when they are not in use. Up to 63% say they are attempting to reduce energy consumption.

Cutting Grocery Bills

Grocery bills are skyrocketing almost as quickly as energy. Prices of eggs, poultry, and meat in general have risen substantially over the past year. Currently, 47% of those surveyed claim they are looking for ways to reduce their grocery expenses by cutting out expensive brand names and opting for store brand options. 45% claim they are shopping at discount supermarkets to cut costs.

Reducing Big Spending Occasions

Spending on big occasions is not essential, but it is nice to treat someone on big occasions. However, during the cost-of-living crisis, everything must be reimagined. Therefore, big occasions such as weddings, birthdays, anniversaries and others are receiving a cost-conscious makeover. Brides are making their own wedding necessities and families are chipping in services and using their skills as wedding presents to reduce costs.

Less Socialising

We go out less these days and it is not solely due to our fear of contracting some illness. 37% of individuals in the UK report cutting back on socialising as a means to reduce their personal expenses. Taking the family out to a restaurant for a night or going with friends to an event are taking a back burner to simply staying home.

Using Vehicles Less

Driving for leisure can be a remarkable escape from your daily life, but it is also an added expense. Vehicle maintenance and the increasing cost of fuel have led up to 29% of vehicle owners to park their cars for a while. Drivers are driving less and keeping their drives sanctioned for necessities. Leisure driving is slowly disappearing.

Reducing Holiday Spending

Taking a weekend away or an extended holiday is something we used to look forward to, but these days, 28% of households report not taking a trip over the last year. Although holidays are an excellent way to relax and enjoy time together, you cannot possibly relax if you are worried about spending too much. More and more people are simply staying at home rather than loading the family up for a true holiday and saving that money for something else.

Cancellation

Subscriptions are everywhere these days. Subscriptions for apps on the phone, television, radio, and more are becoming the new norm. 28% of individuals claim they have reduced their monthly expenses simply by cancelling those subscriptions. If it is something you can live without, why pay monthly for it?

Logbook Loans 247 Can Help

The cost-of living-crisis is here to stay, at least for a while, but that does not mean you have to go it alone. Logbook Loans 247 is here to help with your financial dilemmas. We work directly with vehicle owners to ensure they receive the funds they need quickly – and all while maintaining the ability to continue to drive their vehicle. FCA registered, we will work with you to solve some of your financial shortfalls.

Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk.

Facebook
Twitter
LinkedIn