UK COUPLES KEEP CALM AND CARRY-ON SAVING AS FINANCIAL SQUEEZE MAKES SAVINGS GOALS HARDER THAN EVER TO REACH
SAVINGS GOALS are firmly front of mind for Brits as the cost of living impacts the nation’s savings, and households question spending in a bid to keep savings goals on track this year.
In fact, research shows nearly 1 in 2 Brits (49%) say it’s harder than ever to save since the start of 2022, with 45-54 year old age groups feeling the strain on savings most at 66%.
A study by financial coaching company Claro Money has today revealed that nearly half of Brits (48%) plan to cut back on eating out in favour of home cooked meals to boost savings, which is a significant blow to the struggling UK hospitality industry.
It’s set to be a romanceless time for all, as 46% of British couples plan to cut back on date nights with a firm focus on protecting savings goals.
It seems that it’s British hospitality that is set to bear the brunt of the nation’s couples tightening their purse strings most, with cutting back on eating out (48%) and curbing date nights (46%) topping the top five ways Brits plan to continue saving towards their goals list*, during the rising cost of living.
Completing the list includes, questioning and cutting back on all outgoings (29%), taking fewer holidays (26%) and taking on overtime at work to boost savings pots (19%).
It’s women who are the savvier savers across the country it seems, as nearly a third (32%) of UK women plan to question the household budget and cut back on all outgoings in a bid to save towards savings goals. Compared to just 19% of men.
37% of Brits say they save more than their partner, with only a quarter (26%) saying they save the same amount as their other half.
Sadly, taking a once in a lifetime holiday (19%), renovating the home (18%), buying a house (17%), buying a new car (15%), and taking a career change (12%) are what Brits have already delayed due to low savings in 2022, Claro Money has found out.
While the headlines might say many Brits are frivolously spending, or money hangovers from the pandemic and the cost of living increases are heavily impacting outgoings, Claro Money has found that Brits are tightly focussed on reaching their savings goals still, and putting in place realistic plans or delaying milestone moments in life to obtain their savings goals and succeed with saving.
A staggering 41% of Brits report that outgoings increasing, i.e., rise in bills etc. has meant that they can’t save as much as they hoped to, and that this has had the biggest impact on reaching their savings goals. With over half (52%) of 45-54s feeling this delay most.
It’s apparent that changes in the nation’s ability to save is coming to everyone, with households that have a joint income of over £100,000 also weathering the impact of this perfect storm on savings.
54% of households with a joint income over £100,000 say it’s harder than ever to put savings aside in 2022, and while actively cutting back on eating out (62%) in a bid to help savings. For most of this group (54%), it’s simply been a time of having to spend money on other things so far this year.
Mike Barrow, Financial Coach at Claro Money, comments: “While it’s disheartening to reveal the delays to life’s milestone moments like taking that once in a lifetime holiday or affording a career change dream, it is encouraging to see the nation realigning their savings goals to suit the given situation of rising outgoings and cost of living.
“Temporarily changing habits to take fewer holidays etc. all helps to stay on track of spending and for you to make realistic plans to save when you’re able to – but not at the cost of your own wellbeing and happiness. Flexibility and being mindful about your money is the key to successful savings goals, being able to adapt when needed or circumstance dictates, knowing that you have a plan to put back or make-up those savings goals while still enjoying life.”
When it comes to ways in which Brits can help save towards their goals still, savvy Brits were clear what topped their list and stood to boost their savings most:
*Brits Top Five Ways To Help Save Towards Goals:
1. Cut back on eating out in favour of home cooked meals (48%)
2. Cut back on date nights (46%)
3. Question and cut back on all outgoings (29%)
4. Take fewer holidays (26%)
5. Take on overtime at work (19%).