Over half of Brits managed to save £1,499 on their spending last year, according to the latest research.
The Lloyds Bank Spending Power Report, which looked at how people changed their spending across 2018, found that 58% of people had cut back on spending – saving an average of £125 a month.
It also showed that youngsters took the lead in tightening their purse strings with 61% of 18 to 34-year-olds changing spending behaviour to save some money. This is compared to 47% of those over 55 doing the same.
Robin Bulloch, managing director for Lloyds Bank, said: “Although 2018 has been a year of uncertainty for consumers across the UK, the majority are taking positive steps towards keeping back cash, showing that they recognise the need to take action and engage with their finances.
“Taking the time to research your purchases to obtain the best deals possible can ultimately save you a pretty penny.”
The analysis also showed that savvy spenders made cuts across the board, with 64% cutting back on spontaneous purchases and 62% reducing their grocery shopping. Interestingly, 59% made reductions to the amount they splashed out on leisure activities.
Consumers also turned to coupons and loyalty discounts in order to manage their spending – with 43% having collected and used vouchers from retailers, and 23% turning their heads to savings websites for cut price goods.
The North West reported the largest proportion of spending savers across the UK, with 68% taking action. Savvy regions also included the West Midlands at 62% as well as, Scotland and the South East at 57%.
Despite the saving, fewer people said they now plan to cut back on their spending in 2019 compared to 2018, with exactly half believing they will take action to reduce spending.
Jon Bean, chartered financial planner at Eldon Financial Planning, said he noted that clients were focused on making each penny count. He said: “Rather than a switch from investing to saving, it’s been a case of making sure their money is working as hard as possible – whether that’s investing in the best way whilst reducing costs, or making sure that their house insurance is providing suitable cover for a competitive premium.
“I think people on the whole are becoming more engaged with ensuring they’re getting the best deal and saving where they can.”
When it comes to saving this year, Andy Hart, financial adviser at Maven Adviser, said people can make simple changes to save. He said : “My tip is to automate your savings and investing. The key is to start small now but increase big at least annually. Also, if you invest 20% of your net income you’ll retire rich.”
Aamina Zafar is one of the UK’s leading financial journalists. She has previously worked as a senior reporter at FT’s Financial Adviser. The award-winning journalist writes regularly on the IFA community, mortgages, pensions and financial regulation.
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