Impulsive Brits overspend by not planning ahead
Cash rich, time poor Britons are throwing away £2,256 each year by failing to plan ahead on their purchases reveals a study by direct bank first direct. The tendency towards last minute spending on everyday items can add up to a staggering £43 per week.
The survey of 1,000 adults reveals that seven in ten (71%) adults said they regularly fail to plan ahead on their spending, despite admitting that they have paid too much for items as a result. The fairer sex is more likely to veer towards impulse purchases than men, 74% of women admit they do not always plan ahead compared to 68% of men. Those aged over 45 are the worst offenders when it comes to leaving their purchases to the eleventh hour (76%).
Nearly four in ten (37%) do not plan their family meals in advance, prompting last minute stops at pricey convenience stores to buy ingredients. Just under a third of people (31%) say that they believe they have paid too much for groceries as a result, with the potential annual overspend totalling £446.
Britons waste an estimated £988 on rail and air fares each year, while insurance for a home or car can cost an extra £280 on average by not shopping around before the renewal date.
Indeed, 30% of women don't think about what they're going to wear until the day of a big night out. Twenty-eight per cent of women have bought an outfit on the day they need to wear it and 26% say they've paid too much for an outfit as a result of buying it at the last minute.
More than a third of people (34%) say they have bought petrol, only to find it cheaper elsewhere afterwards. With the price per litre of unleaded petrol varying between 131.9p and 113.9p this could mean a difference of £173 over the course of a year.
Other items that respondents have purchased only to find them cheaper elsewhere include electrical good such as TVs (32%), groceries (31%), clothes (24%) insurance (17%) and travel tickets (11%).
Top 10 most regretted last minute purchases
Petrol (34%)
Electrical goods (32%)
Groceries (31%)
Clothes (24%)
Insurance (17%)
Air / rail tickets (11%)
Theatre / cinema tickets (9%)
Repair services e.g. mechanic / plumber (8%)
Jewellery (6%)
Savings account (5%)
As the festive season approaches, as many as one in five (21%) say they don't start their Christmas shopping until up to a fortnight before the big day. This is true of three times as many men (31%) than women (13%). Fifty-seven per cent of women start their Christmas shopping at least a month before the 25th December, compared to just over a third (35%) of men. 2% of men only begin to shop for gifts on Christmas Eve.
Richard Brown, Senior Savings Product Manager at first direct commented: "By failing to plan ahead Britons are needlessly throwing away their hard earned cash that could otherwise be used to add to their savings pot. With rising inflation and VAT set to rise in January, it is more important than ever that people take advantage of potential savings. Taking a few simple measures could save both time and money."