A quarter of UK adults plan to reduce spending in 2015

A quarter (25%) of UK adults plan to reduce their spending in 2015 as they expect next year to be harder on their personal finances, according to research released by the Money Advice Service. One in five (20%) adults think they will find it harder to cope in 2015, whilst just half as many (10%) expect things to get easier.

Top reasons UK adults expect to find it harder to manage financially in 2015 versus 2014:

Inflation (54%)

No pay rise (36%)

Expecting a pay cut (17%)

Top reasons UK adults expect to find it easier to manage financially in 2015 versus 2014:

Expecting a pay rise (48%)

Will have paid off loans (20%)

Had a major expense in 2014 (17%)

Taking control of personal finances in 2015

A significant proportion of UK adults are taking proactive steps to take control of their money. Almost half (47%) of those who plan to reduce their spending are hoping to cut back by buying cheaper alternatives to their usual products. Forty one per cent also plan to spend less socialising, while over a third (35%) say they will spend less on clothing.

In addition, over a quarter (26%) say that they plan to spend less on presents for others in 2015, while 25% will take a packed lunch to work in a bid to reduce day-to-day spending.

Twenty two per cent plan to make changes to the way they manage their daily finances in 2015 – 56% in this group say they will stick to a monthly budget. Nearly half (45%) say they will put aside some money each month, and 36% will simply make more of an effort to live within their means.

Commenting on the research, Jane Symonds, from the Money Advice Service says: “Although many people are expecting to find it a bit harder to make ends meet in 2015, it is great to see so many plan to take proactive steps to deal with this rather than just bury their heads in the sand. Managing finances better and thinking about ways to reduce spending are great New Year’s resolutions – whether you are making them out of necessity, or to free up a little extra cash to spend on the things you enjoy. 

“We have a range of tools on the Money Advice Service website, such as our Budget Planner which makes it much easier to plan your outgoings in 2015. We also have a Cutback Calculator which can show you where you can free up some extra money – and just how much you can save over a period of time.”