Brits cut back on basics to afford ‘lifestyle essentials’
Almost eight out of ten Brits are cutting back on their everyday spending in order to pay for some lifestyle luxuries.
Protection specialist LV's “Lifestyle Inflation Index” reveals that Brits have spent an average of £5,850 per household (£149 billion overall) in the last year on what they see as ‘lifestyle essentials', such as holidays, nights out and take away meals.
In order to afford these luxuries, Brits have had to make some adjustments to their everyday habits. 47% of Brits are not buying brand food any longer and 36% are buying personal items at cheaper shops. A third (33%) are taking their own lunch to work, 21% are growing their own fruit and vegetables, 18% are buying clothes and other personal items second-hand and 11% are even taking their coffee/tea to work in a flask.
Worth the effort
Holiday and weekend breaks are at the top of the list with 51% of people considering it a lifestyle essential. Other “necessary luxuries” are meals out in restaurants (36%), cultural events (22%), nights out in pubs (21%), going to the cinema (21%) and having take away meals and stylish haircuts (both being essential for 20% of Brits).
In relation to this, the recent 2011 ABTA Consumer Trends survey revealed that one in five sees these breaks as a necessity rather than a luxury. Four out of ten Brits (37%) said that a holiday is the thing they would be least willing to cut back on.
Comparing the financial products we use such as credit cards or bank accounts is fundamental to saving some money on a daily or monthly basis. Regarding the “need” to go on holiday, there are other products that can help to make the most of your finances, such travel money cards.