Living costs put a squeeze on household finances – with Brits having an average of £250 less to spend monthly
Brits have an average of £250 less disposable income each month, compared to last year – as the cost-of-living crisis continues to squeeze household finances.
The study of 2,000 adults found those who pay rent or mortgages are laying out just over £60 more each month now compared to 12 months ago, while gas and electricity bills have risen by around £100 a month to £248.
And travel expenses have set commuters back in excess of £104 per month more, going from £116 in 2021 to £221 this year.
Personal savings have also suffered a decline of 21 percent in the past 12 months. Three in 10 people now live paycheck to paycheck.
However, despite having less cash to spend after bills each month, Brits are still doing all they can to plan for the future – with six in 10 managing to continue to save regularly.
In fact, adults are still putting away the same now as in 2021 – with nearly 20 per cent of their monthly pay-packets being stowed away on average, despite many having to dip into their savings this year.
It was also found that 35 percent have achieved all financial goals set for them in 2022, while another 19% are happy with the progress made.
Respondents were able make progress by cutting down on non-essential expenditures across the board (38%), going out less (27%), budgeting more (27%), and sticking to a strict budget (22%).
Others found ways to make more money by selling unwanted items (21%), starting a side business (18%), working overtime (18%), securing a promotion (12%) or changing jobs (11%).
Brian Byrnes is the head of personal finance at Moneybox [www.moneyboxapp.com], said: “It’s clear from this research that where possible, people are doing all they can to protect their savings and achieve their financial goals despite personal finances being stretched so much in such a short space of time.
“But of course, not everyone has the flexibility in their budget to plan for the future right now.
“If that’s the case for you, remember the most important thing you can do for your financial wellbeing in 2023 is build positive financial habits that will set you up for success in the long term.”
2023 could be saved with rainy-day savings
Many people are now taking a fresh look at their finances after the financial crisis. 27% of respondents have set a budget for the first year.
41% of respondents have begun to plan for the future and 26% are already making plans.
34% of respondents feel they have greater control over their finances and 29% feel they are better at managing money now than they were before the financial crisis.
Looking ahead to 2023 is similar to 2022. Building a rainy-day account is the top financial goal for next 12 months. 34% of respondents want this safety net in case there are further price rises in 2023.
30% also want to have enough cash in case of job loss due to the impending recession.
Nearly a fifth (19%) of Americans are saving towards a home deposit, and 11% are setting themselves the goal to max out their annual savings. Lifetime ISA government bonusIn 2023.
25% plan to prioritize investing and saving more in 2023.
OnePoll’s study found that 29 percent of respondents were optimistic that they can achieve their financial goals this year if everything goes according to plan.
23 percent are confident about their financial position and are focused upon long-term opportunities for building wealth.
16 percent are anxious about how they will manage their money in the next year. 24 percent don’t think their financial situation will change in the following year.
Brian Byrnes added: “At one time or another, most of us will admit to not spending enough time managing our finances to help us achieve our future goals.
“Committing to taking some simple steps now to build positive financial habits such as budgeting, regularly reviewing your spending, and setting achievable financial goals, will all help you take control of your future finances and manage the impact of rising costs of living with greater confidence.
“It will also set you on the right path to achieve your goals as quickly as possible in the future.”
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