Prudent Brits are resolving to get their finances in order in 2009 with some serious cost cutting measures, after an average Christmas bill of £705.21.
Prudent Brits are resolving to get their finances in order in 2009 with some serious cost cutting measures, after an average Christmas bill of £705.21.
The study by Norwich Union, soon to be Aviva, reveals that millions of people up and down the UK will be taking action to help make it through January. The most popular cost cutting measures are:
- Giving up on socialising and entertainment for the month (37%)
- Cutting back on food (34%)
- Cutting back on gas and electricity (20%)
- Selling presents (15%)
- Putting off booking holidays (14%)
- Selling personal items (14%)
- Giving up alcohol (10%)
The cuts come after Brits on average spent over £700 during the festive period on presents, fun and food:
- Travel - £34.65
- Christmas gifts - £365.33
- Socialising - £79.12
- Sale shopping - £86.31
- Festive food & Drink - £139.80
A third (33%) of the UK admitted that they'd overspent this Christmas with women being the hardest hit. Over one in three women (37%) didn't plan and ended up overspending compared to one in four men (26%).
To help Brits beat the January blues Norwich Union has teamed up with Lawrence Gold, TV financial expert to devise some money saving tips.
Lawrence says: "Despite the credit crunch, the research clearly shows that many of us have struggled to budget effectively for the Christmas period and will face a long and difficult January.
"In order to get through 2009 in sound financial shape people urgently need to take a more serious attitude to financial planning this year and these cost cutting measures are a good start."
Lawrence Gold's 10 steps to solving your financial worries this New Year:
- Get organised - firstly get together all your financial documents and work out how much you owe on everything from credit and store cards to loans and overdrafts.
- Budget - work out your weekly and monthly expenditure. Most of us know what our income in but have no idea about outgoings so it's a good idea to look in detail at recent bank and credit card statements to find out where your cash goes.
- Put the two together and see what you can afford to pay off starting with the most expensive debts first (eg store cards often have high interest rates). Avoid minimum repayments as they are designed to keep you permanently in debt.
- If you struggle to keep track of spending, ditch the plastic and start drawing out the cash that you plan to spend at the start of every week. If you're easily tempted, cut up your credit cards or leave them at home so they're only used in an emergency.
- Don't buy something just because it's on offer. Check prices online first as they are often cheaper, then see if the high street store will match the price. Don't be afraid to haggle!
- Think about switching utility companies as they often offer good deals to new customers. Also, stop paying for services you don't use - for example what's the point in paying out for satellite channels that you never watch.
- Managing your money online could save time and cash. Paying bills by direct debit is also a great way to avoid admin fees.
- Why wait until next Christmas? Plan ahead by setting up a savings account and use a direct debit to move a small amount of your income into it every month. Just £30 per month is a Christmas kitty of £360 in 12 months.
- Pick up a few gifts each month so you can spread your spending across the year rather than let it all add up in December.
- Don't suffer in silence, there are organisations that can give you good, practical advice such as the Citizens Advice Bureau.
David Barral of Norwich Union, comments: "January is almost always the longest month in terms of money. It is also the right time to take stock of money matters and how we arrange our finances over the longer term."
-ends-
For further information or to arrange an interview with Lawrence Gold contact:
Jessica Gooch
Telephone: 0207 908 6447 / 07970 152155
E-mail: jgooch@lexispr.com
Neil Watts
Telephone: 0207 908 6451
E-mail: nwatts@lexispr.com
Notes to editors:
Norwich Union commissioned research with Opinion Matters / Tickbox.net amongst 1,275 adults in employment across the UK, between 18 December and 29 December 2008.
About Norwich Union
Norwich Union is one of the UK's biggest life insurers. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union has strategic alliances with building societies and other leading UK brand names including CIS and The Royal Bank of Scotland Group. Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media
In the summer of 2009 Norwich Union will change its name to Aviva. Aviva is the world's fifth largest insurance group and operates in 27 countries. Aviva is to become the customer brand worldwide, thus enabling the company to compete even more effectively on a global scale for the benefit of customers, staff, business partners and shareholders.