As the UK faces record-high inflation rates, and concerns rise over a global recession, you might think we’d be cutting back, and spending less of our disposable income.
However, recent research from Online Betting Guide (OLBG) reveals us Brits are still splashing the cash, spending 54% of our annual earnings (after tax) on discretionary costs.
This includes spending over £3,000 a year on maintaining our motors, more than £1,500 on holidays abroad, and nearly £270 on gambling, including sports betting and lottery tickets.
OLBG’s Discretionary Spend Index has tracked the average spend per UK adult over the years 2021-2022 (excluding living cost) across 12 popular consumer categories, and compared them to the year before (benchmarked against data from the Office of National Statistics).
The research discovered the UK public have massively increased their spend on things such as eating out — rising from £698 a year in 2019/2020 to a staggering £924 this year — looking after their pets, and treating themselves to takeaways.
According to financial advisers, working adults should be following the 50/30/20 rule, which means spending 50% of income of essentials, 30% on discretionary spending, and 20% into savings.
But based on the study by OLBG, we’re actually spending around £3,000 more per year on discretionary costs, than the recommend amount.
So how can you cut back on your spending?
Here are our top tips for saving the pennies and being smarter with your cash:
- Cut out unwanted subscriptions
With Netflix recently increasing their monthly charge, it may be time to rethink the services you subscribe to.
According to OLBG, we’ve spent £49 this year on streaming and TV subscriptions – an £11 rise from the year before.
One way to save your hard-earned cash, is to cancel any unwanted subscriptions you may have, or perhaps have forgotten about.
If you still feel the need for these services, why not look into their different packages, and see if you could opt for a cheaper option? Or you could pause the service and resume at a later date, saving you the monthly outgoings when you’re not using it.
- Try fake-aways
Eating out and takeaways top the list as one of things we’re spending our money on, in OLBG’s Discretionary Spend Index. In 2021/2022, we spent a combined total of over £1,500 on our favourite fast foods, restaurants and cafes.
If you have a taste for dining out, why not swap for a fakeaway at home to cut costs. These delicious meals are designed to imitate your favourite takeaways, but at a much lower price, easily cooked in your own kitchen.
Just search online to discover the range of amazing recipes available.
Not only can these types of meals help you save money, they’re usually a healthier option too! Plus, you can improve your culinary skills along the way.
- Be safe with your sports betting
In addition to their research, OLBG are committed to promoting responsible gambling and staying safe when gambling online.
With a safer and smarter approach to betting, you can not only cut back the costs, but also gamble responsibly.
There are several tools provided by bookmakers which you can use to do this, such as deposit limits and session limits. These can help you keep control of the amount you deposit, as well as the amount of time you spend on the betting site.
- Look out for the best deals
Whether you’re thinking of upgrading your phone, or planning your next trip away, it’s always best to shop around before you commit to a purchase, so you can get the best value for money possible.
Take your phone contract for example. You may be tempted by shiny offers from the top provider, but find a better deal from somewhere less known, which could see you save some serious money.
- Know where your money goes
It may seem simple, but keeping on top of your bank statements regularly can help you keep within a budget, and be the quickest way to start spending smarter.
We often have distance between what we think we’re spending, compared to the reality of what goes in and out of our bank accounts.
If you check your bank statements often, you can see where you’re spending the most, such as on home décor and improvements, car maintenance or beauty treats.
Evaluate whether these purchases were necessary, and think about if you can spend less on them in the future.
