One in 10 who tried to save in January ‘are about to give up’
One in 10 people who tried to save in January will have given up by the end of this week, a survey suggests.
With their January pay now banked, 10% are now set to break their self-imposed spending ban, according to loan services and peer-to-peer investments provider Zopa.
On average, people expect to spend £391 more in February than they did last month – rising to £568 for Millennials aged 24 to 39.
Not buying clothes, shunning takeaways, sticking to a budget and drinking and going out less are the money-saving measures people are most likely to ditch first, the survey of 2,000 people found.
However, nearly a third (32%) do want to continue most of their January savings habits, with over half (54%) aiming to carry on some improved habits into the rest of the year.
The research estimates that if people did stick to their better money habits throughout the whole year, they may potentially save £4,692 on average.
Clare Gambardella, Zopa’s chief customer officer, said: “After a frugal January, it can be tempting to splash out once you get paid, but making small financial changes can help people feel in control and good about their money all year round.”
Here are some tips from Zopa for managing finances:
– Keeping a budget to manage income and outgoings provides clarity over your finances.
– Consider cutting out unnecessary expenses such as unused gym memberships and subscriptions. Consider which you are really using and if there are any savings that you can make.
– Set yourself monthly challenges. Zopa’s research suggests taking part in events such as “veganuary” and “dry January” returned savings for some people who tried it. Consider trying something that you think could suit your lifestyle for a month.
– Consider consolidating debt if you are on several different interest rates.
You may find your credit position is improved if you register on the electoral roll. Try not to make many “hard” searches for loans. This happens when a company makes a complete search of your credit report. This can have an impact on your ability to get credit.
It is also possible to make “soft” credit checks. Companies can look at certain information without fully examining your credit history so that it does not impact on your credit score.
Zopa has a “borrowing power” tool that offers personalised tips based on the factors impacting someone’s credit health.