We’ve all been hit by the cost-of-living crisis, rising inflation and increasing energy prices — not to mention the fact we’re still recovering from the covid pandemic.
However, despite the doom and gloom, us Brits are still spending more and more on luxuries and services.
In fact, according to research by Online Betting Guide (OLBG), UK adults are spending 62% more this year, with nearly £13,500 of annual earnings (after tax) spent on discretionary costs, compared to just over £8,000 in 2019/20.
The OLBG Discretionary Spend Index has tracked the discretionary spend of the average UK adult, across 12 categories of expenditure, including:
- Takeaways
- Eating out
- Hairdressing
- Streaming services
- Transport
- Mobile phone services
- Pets
- Home improvements
- Alcohol
- Tobacco
- Gambling
Dining out and fast food have seen a massive boom, with a rise of 320% in this area since 2019/20, increasing from a spend of £153 to a whopping £644 in 2021/22.
‘Do it yourself’ home projects are also at the top of list, with Brits increasing their spend by 366% over the past couple of years, and splashing out an incredible £3,304 in 2021/22 alone. A likely side effect of recurring lockdowns!
There are plenty of areas where UK adults are overspending on non-essential goods and services.
So, if you’re feeling the pinch, it may be time to start thinking about cutting costs.
And here’s how! We’ve put together our top tips and tricks, from slashing subscriptions to fighting fuel costs, so you can start saving the pennies.
1. Check, cut, cancel — subscription detox
The first place to start, and perhaps the easiest, is to strip-back your subscriptions.
According the OLBG’s Discretionary Spend Index, we’re spending £49 on streaming services and TV subscriptions annually — an increase from £38 the year before.
This is no surprise when Netflix have increased their prices by 28%, and the average monthly subscription now costs £10.99 per month.
How can you combat this?
Make a list of all the subscription services you have, which you can deduce from the transactions in your bank account.
Are there any you no longer need? Or a few you forget you were still paying for? Are there some which you can reduce the package to a cheaper price, or temporarily pause whilst not using?
By checking and cutting back on your subscriptions, you can save yourself some serious money.
2. Steer your way to cheaper fuel costs
Motorists have been majorly hit by increasing fuel costs.
The research by OLBG reveals we’re spending nearly a quarter (24.1%) of annual average earnings on motoring and transport — which equates to over £3,250 a year compared to just under £2,050 in 2019/20.
Surprisingly, it’s worth shopping – or should we say driving – around for your fuel.
Take the time to find the best petrol prices in your area, as a slightly different route to another petrol station could see you save money by the litre.
Make the most of loyalty cards and schemes from the petrol garage, as you could earn yourself extra rewards or money-off vouchers for your fuel.
And finally, apply some life hacks to your car itself.
Removing excess weight, checking your tyre pressure regularly, and using your windows instead of air con, can all help to reduce the amount of fuel you use, and keep your tank going for longer.
3. Responsible gambling
It seems out of all the categories monitored by the OLBG Discretionary Spend Index, gambling spend has remained fairly consistent, increasing slightly from £263 in 2019/20 to £267 this year — 1.9% of average annual earnings.
Many bookies and casinos have a number of tools which can help you keep in control of your budget, as well as keep things fun and safe.
So firstly, set yourself a monthly maximum betting budget, so you never bet more than you can afford, and can manage the amount you’re spending.
Then, take advantage of your chosen online betting site’s deposit limit function.
This allows you to set a certain maximum amount of funds you can deposit into your account over a certain period of time. Once the limit is reached, you cannot deposit any further funds.
This limit can be set for daily, weekly, or monthly amounts, and can not only help you to gamble responsibly, but also manage your money.
