Brits make up to nine impulsive buys a month on โgood dealsโ, spending almost ยฃ200.
That’s according to research fromย Share to Buy, which hasย analysed where the average Brit spends their disposable income.
The median annual income per household is aroundย ยฃ29,400, with eating out, putting money away for a holiday and buying new clothes topping the list of things most likely to put a dent in our bank balance.
Last year, average weekly householdย expenditureย was ยฃ572.60 a week, or over ยฃ29,700 a year โ ยฃ300 more than what we bring in.
One in 10ย people experience a โShopperโs Highโ during an impulse purchase, and these often go to waste, according to MyJar.
One study of the high shoppers get when splurging revealed that up to ยฃ9,000 of the money we spend a year is wasted on items that we donโt even use.
Top Money Wasters Per Year
ยฃ628 – Rarely used TV packages
ยฃ528 – Unused mobile phone credit
ยฃ733 – Unworn clothes
As a nation, we love bargains so much that, these spontaneous sprees end up adding upโ around 6,500 impulse buys a lifetime, adding up to a whopping ยฃ144K.
UKโs top 10 impulse purchases include:
| Chocolate | 6. Books |
| Clothes | 7. Beauty Products |
| Takeaways | 8. Shoes |
| Coffee | 9. Magazines |
| Lunch | 10. Underwear |
- Unwanted subscriptions: Around half the country has been caught out by free trial subscriptions according to YouGov, either by forgetting to cancel or being unable to, and it cost us around ยฃ800 million in the last 12 months. One in eight people has paid for an unwanted subscription for over four months before cancelling, with 23% paying for up to three months.
- Mobile data: Most mobile users waste around 2GB of data a month, and 71% of mobile customers are overpaying for data they donโt use, at a total cost of ยฃ800 million per year.
- Clothing: A study commissioned by Vanish revealed that one in 10 Brits admits to throwing away clothing that doesnโt fit rather than returning it, while the average person throws away eight items a year, adding up to around ยฃ500 of wasted cash per person. One government report state that 300,000 tonnes of clothing ends up in household bins in the UK each year.
How to Save Money: Basic Ways to Boost Your Savings
- Learn how to budget: To learn how to stop spending money, keep a list of debt and savings targets in your wallet to stay on track with a planned budget for the month. This is a good way to see how much you really spend on entertainment, travel and more.
- Stick to a list: One of the simplest money-saving tips is to decide what to prioritise by creating a list before you go shopping. The trick is to stick to it to avoid impulse purchases like chocolate or clothes.
- Prioritise spending: From health and beauty to takeaways and tech, prioritise spending habits from highest to lowest across each major category, and see where you can cut down. Try to spend money across just one of the categories each month.
- Create a waiting list: Help to reduce impulse spending and increase disposable income savings by creating a two-week waiting list for bigger purchases to see if they really are worth the spend.
- Use technology: Finance apps like Money Dashboard and Tandem can help you stay one step ahead of your finances by tracking how much you save and spend.
- Recheck all your subscriptions: Stop wasting your disposable income through unused gym memberships, magazines, TV channels and more. Do an audit of every group or service you belong to and cut everything you no longer engage with by using a helpful app like Emma.
- Set short-term goals: Alter your spending habits by creating specific goals you can work towards, like cutting your entertainment budget from ยฃ300 a month to ยฃ200. If youโre looking to step onto the property ladder, use this mortgage comparison tool to discover what kind of mortgage you could afford to begin setting your goal. Whether you fall into the average disposable income in the UK or not, any amount of savings is a good start!
Nick Lieb, Head of Operations at Share to Buy, said:ย โIn 2019, the average deposit put down by first-time buyers on the open market in London was an eye-watering ยฃ110,182. For those looking to buy their first home on the open market, spending less on subscriptions, clothes and food will go a long way in helping their savings balance increase, but even if millennials can save 20% of their wage each month, it will still take an average ofย eight years and four monthsย for one person to save enough for a house deposit.ย
โIn stark contrast, saving to buy a Shared Ownership home can prove to be much more achievable for first time buyers. For example, if a couple are able to put aside ยฃ400 a month, then they could save for a deposit in a third of the time needed for a deposit on the open market.”
