Three quarters of Britons are planning to cut back and save this year

23rd January 2015

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Three quarters of UK adults are planning to adapt their lifestyle this year to help them save for the long-term.

 

A survey by insurer Standard Life shows 76% of people are prepared to moderate their spending now to prioritise long-term saving and nearly half, 46%, have made a money-related New Year’s resolution to try and improve their financial situation.

 

Almost a quarter, 22%, plan to save more this year and one in five hopes to cut day-to-day costs.

 

The resolution to save more could help increase the number of people happy with the amount they save, with less than a third happy with the amount currently.

 

A quarter of adults are not saving anything at all despite thinking they should and 37% don’t save as much as they think they should.

 

Although Britons are interested in saving more this year, 65% say they are still planning a ‘big ticket’ spend.

 

Over half, 53%, plan to cover the cost of the big ticket spend from their savings and 27% plan to cut back on day-to-day spending to afford bigger buys.

 

Holidays topped the list as the most coveted big ticket item – with 36% saving for a trip away. Home improvements came second on the list with 19%, a new car or motorbike was third at 8% while 5% were saving for a property and 3% for a wedding.

 

Standard Life’s consumer finance expert Julie Hutchinson said: ‘It’s clear that lots of people are trying to get on top of their finances and spending a little time planning can help us take control and remove that sense of stress.

 

‘I encourage everyone to take stock and set out a plan for 2015, looking at the big ticket items they aim to spend on, and how much and how often they can save. Now is a great time to start planning, understand your options and the key money moments coming up, including ISA deadlines for this tax year and the new pension reforms in April.’

 

To take control of your finances this year, Hutchinson said:

 

  1. Review your finances to see if you can pay off debt and cut regular outgoings, as well as set a budget
  2. Make the most of the £15,000 ISA allowance that allows you to save tax free
  3. Understand the changes that affect you, such as the pension reforms coming into effect in April
  4. It you have a big ticket item to pay for try to save towards the cost rather than running up debt by putting it on a credit card
  5. If you file your own tax returns, remember the deadline is midnight on 31 January so make sure you do it otherwise you will incur a fine.

 

 

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