The rising cost of living expenses means UK households are spending up to 40 per cent of their salary on basic expenses like utilities and food, according to new research from Santander.
The study, which questioned more than 2,000 people in the UK, found that:
- Electricity: 85% say their bill is rising
- Gas: 78% say costs are going up
- Water: 61% say it is getting more expensive
- Just 3 in 10 felt positive about the state of their future finances
- Cutting back: 83% have sacrificed certain luxuries such as clothes or holidays to cover the cost of basics such as food and bills.
And this is having a worrying impact on family finances, with 38% of families struggling to put away more than £99 a month, and 31% not able to save anything. Just 3 in 10 respondents felt positive about their financial prospects.
Jasmine Birtles, founder of Moneymagpie recommends the following tips to help you save Money:
Make your bank account work harder for you - search for a current or savings account that offers a better rate of interest rate of interest or lower fees
Shop around for better rates amongst utility companies - suppliers are always looking for new customers and often offer great introductory offers and a painless transition
Use online, telephone or mobile banking - put yourself back in control of your finances by identifying payments due to come out, charges or any irregularities rather than waiting for a bank statement at the end of the month
Stick to a budget – writing a list before you go the supermarket will help you avoid spontaneous or unnecessary purchases. Make your pennies go a little bit further by buying home brand, basic or reduced price goods.