Impulse buying is something that we all do, and later regret when it comes to checking our online banking. We all make New Year’s resolutions, and they can often be disastrous, with 80% of people failing by February and regretting it instantly — have you managed to stick at yours? One of the most common New Year’s resolutions is to cut down on spending, and although this sounds achievable, if you don’t have a fully-pledged strategy in place, the likeliness of failure spirals out of control. Check out how to cut your costs and save money.
How to cut your costs
Unfortunately, unexpected expenses can arise at any time and leave us in a difficult situation to deal with — from broken boilers to needing to make a third trip on a return bus ticket; and we need to pull out the extra money. It all adds up.
We’ve teamed up with Stagecoach, who have competitive bus pass prices to make some assessments on how extra savings can come in handy if something like that was to occur and listed the following methods below:
If you opt for travelling smart, you can see yourself making enormous savings — but how? Using a megarider ticket, you will be able to travel as much as you want and can tailor your own needs to the ticket type. Whether you’re in need of a weekly bus pass for your travels, or a monthly one — you will find yourself making a huge saving in comparison to buying a ticket every day.
Motorists on average spend £168,880 on their car; are you prepared to spend so much? With efficiency growing in public transport, there is no reason for you not to consider making the bold move that could help you fulfil your resolution this year and save you a fortune.
The main cost of running a car is petrol, which stands at around £1,052,04 each year. Servicing a vehicle costs can add up to £441 over a twelve-month period — which can change depending on the individual’s situation. MOTs can cost up to £168.46 annually. Cost of parking is on the rise, and with more vehicles on the roads, there seems to be a higher demand. Over the year, a motorist can find themselves paying £145.80 on parking. When it comes to insurance, this can sway dramatically as younger drivers will find themselves paying a higher cost to be on the road — on average, insurance costs an experience driver £436 every year. Tax can equate to £116.35 on a yearly basis. Car supplies can cost a driver £29.61 and if you were to go abroad and wished to drive, holiday rental cars can leave you £180 out of pocket. Speeding tickets equal £25.12 for the average driver here in the UK. This would cost a driver £2,594.38 in total where commuters find themselves paying considerably less for a significant service — imagine the saving you would make with a megarider ticket!
How much is your lifestyle costing you?
Is coffee really that expensive?
Britain has been captured by the coffee craze and has over 21,000 coffee shops in the country — with this, MyVoucherCode has estimated that people in the UK visit at least three times each week; which can be extremely costly. This means that Brits visit coffee shops around 156 times a year with an average spend of £8.52 — with travel expenses, this could go up to £13.85. This creates an annual average spending of £2,600, a majority of which could be saved if you were to opt for taking your own coffee to work.
If you were to buy a 250g pack of Douwe Egberts ground coffee, you could make an estimated 30 cups. When looking to see how much a 1kg pack would cost, Amazon has priced the coffee at around £15, meaning that each cup of coffee would cost close to 13p. Try taking a flask to work and even purchasing an on-the-go coffee cup that will see you through your day.
How to cut your costs by quitting smoking
Not only is smoking harmful for your body, but detrimental to your bank balance — smoking 20 each day with the average pack costing £10.20, you could save an incredible £3,796 each year. MoneySupermarket.com has stated that non-smokers pay around £6,309 less for life insurance, which could be something worth investing in for the new year.
Vaping is always a healthier and cheaper alternative too. 10ml bottles of liquid cost around £5 on average — saving those who turn to vaping around £1,900.
Is buying lunch on-the-go damaging to our bank accounts?
Gone are the days where we’d prepare our lunch the night before work as it’s becoming much easier to buy our food on the go — whether this is a meal deal at our local supermarket or from those food trucks parked outside our offices. But what if we told you that, on average, forking out for lunch every day could cost you £1,288 according to research carried out by VoucherCloud. Evidently, you could make a huge saving by preparing your lunch at home — whether this is making a quick sandwich or taking in a tin of microwavable soup to heat up. When we looked at the total working days in 2017, there was 252 — if we went by Poundland’s price of tomato soup, which is 50p, you would find yourself paying £126! A massive saving for anyone looking to cut down on costs.
Do unexpected expenses happen that often?
54% of 2,000 people surveyed said that they had to fork out some extra money to deal with an unexpected expense. On average, these costs totalled £248.70 — showing that any saving is beneficial for occurrences like these. 47% of these issues happened in the kitchen, a room which is essential to the day-to-day running of any home, and if you don’t have the money to pull out instantly, it could cause an everyday stress. Using the savings you would have made by taking your own lunch and coffee to work, quitting smoking, and travelling smarter — you will be able to make life easier. It was also found that 35% of people had to use a credit card to cover the costs of unexpected expenses. With 18% of them not being able to pay more than £100 on their own, 17% had to borrow from friends and family!
How are you pledging to save more of your money?
Did you know how to cut your costs before reading this post?
You may want to check out real help for people on a low income.