The death of the takeaway and other treats

Almost nine out of ten Brits (89%) are keen to cut spending on non-essential items this year to safeguard against a looming recession, according to leading independent personal finance website Fool.co.uk.

A British institution, the good old takeaway, is set to receive the biggest blow with over two-thirds (67%) of the nation planning to cut back on curries, chow mein and late night kebabs in the wake of the economic slow-down.

Other planned changes discovered in Fool.co.uk’s Cracking the Credit Crunch report, which quizzed over 1,000 adults, include curbing shopping sprees (67%) and less jetting away on holidays (49%). Some parents are even keen to pass on frugal messages to their children with 3% of Brits planning to reduce their children’s pocket money this year!

Luxury vs Necessity

Brits who earn over £50k per year are most likely to reduce impulse buying (75%) and curb spending on gadgets for themselves (56%). Those on lower salaries are more likely to cut down on staples such as groceries, with almost half (45%) of those earning less than £20k planning to slash supermarket spending.

Other major findings include:

Up in Smoke: One in ten (12%) Brits plan to stop smoking this year for financial reasons, but this rises to a massive 50% of those who are unemployed, meaning a recession could be good for the health of the nation.

Frugal Festivities: Over a third of the nation (37%) plan to reduce money spent on friends’ birthday and Christmas gifts meaning we could be experiencing a skinny Christmas this year.
Beautiful Brits? One quarter (25%) of Brits also plan to cut spending on beautifying, both in the salon and on products.

David Kuo, Head of Personal Finance at Fool.co.uk, comments on the study: “When the going gets tough, the tough get going, and it’s reassuring to see that most of us are going to great lengths to cut non-essential spending from our budgets.

“During a recession, cash is king. And those with the leanest budgets will be best placed to not only survive the downturn but also generate cash.

“In order to enjoy jam tomorrow, we need to make sacrifices today, even if it means giving up the occasional Chinese takeaway. Downturns never last forever, and the recovery will feel so much sweeter if you endure a bit of sourness now.”