Expensive sandwiches, underused gym memberships and cups of coffee on the way to work are identified by IFA Promotion alongside its latest annual survey of savings habits that has found 71% of UK adults claim they cannot save more money.
And, these people are the lucky ones who are still managing to save something: IFA Promotion’s figures suggest 26%, or 12 million UK adults save nothing at all.
The results are based on surveys of some 2,000 UK adults.
Logic, or lack thereof, plays its part with two-thirds of those who claim they cannot save more even while admitting to spending spare cash on “expensive and unnecessary luxuries”.
Additionally, the problem seems worse for women than men, the survey suggests.
A third of women admit to getting into debt to fund costly purchases, with the number of “self-confessed spendthrifts” rising to 19% from 11% at the same time last year.
Women are increasingly relying on credit to fund their spending habits too, with credit cards used to fund 50% more so-called “big ticket” items than in the previous year. The increase in use of credit comes even as the UK base interest rate has since November 2003 been raised more than 35% to its current level of 4.75%.
The proportion of women who take on debt to fund spending sprees has risen to 28% compared with 22% of men, IFA Promotion says.
According to the organisation’s research the annual cost of ordinary everyday activities that could be put into savings include:
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