Brits are nation of cost cutters, but many still failing to save smart
We’re becoming increasingly good when it comes to cost cutting, according to the latest findings of an annual online survey from long term savings and investment specialist Standard Life by YouGov Plc.
Today, more than 9 out of 10 of us (92%) actively manage our costs to make our money go further. There has been a strong growth in the number of people reviewing phone tariffs, internet tariffs and utility providers and more of us than ever now go online to find the best deals.
More young people in particular have taken steps to actively control their costs in the past year. 42% more under-25s are regularly reviewing their phone and internet tariffs to save money and 33% more are making sure they pay off their credit cards each month.
Top Cost Cutting Tactics: Main Movers
Tactic - Year on year change
Reviewing phone/internet tariffs regularly to save money +21%
Reviewing utility providers and tariffs regularly to save money +20%
Reviewing insurance contracts regularly +17%
Selling things no longer needed +4%
Regularly going online to seek out the best deals +3%
Buying things second hand +3%
Paying off credit card each month in full +3%
Meanwhile, 21% more people aged 55 and over report that they set themselves a weekly or monthly budget– although as a nation, the number of people budgeting has declined by 5% this year.
But while most Brits are busy cost cutting - buying things second hand, reviewing insurance premiums, budgeting and ensuring they get the best deals all round - those who are “saving smart” by using a Cash ISA (41%) or a Stocks and Shares ISA (11%) remain in the minority. Even fewer say they plan to actively save in a Cash ISA (38%) or a Stocks and Shares ISA (9%) this tax year.
Commenting, Standard Life’s Julie Hutchison said: “The clear message from our research is that we, as a nation, are great at cutting costs but aren’t so savvy in translating that into ‘building savings’. We still need to give the savings we are making for our future a bit more TLC.
“From July this year we will be able to save up to £15k in the New ISA and we will also be able to transfer ISA savings freely between cash or stocks and shares. So rather than squirrelling all of our money away in a savings account, we now have a chance to save smart with even more of our money. The higher ISA limit also increases the opportunity we have to invest in stocks and shares tax efficiently, with the potential for higher returns than if we keep everything in cash.”