A day in the life of a money saver: How and where to be smarter with cash

With prices rising left, right and centre, it might be time to consider tightening the purse strings. But where and how can us Brits be savvier with our cash, and start saving some money?

It doesn’t have to be cutting out everything and anything in order to save enormous sums. Instead, by doing a little bit here and there over the course of a day, it’s possible to see the cash add up.

But in what areas can people be smarter with their spending? OLBG have recently conducted research into the average annual expenditure of a UK adult, and curated the Discretionary Spend Index. The Index covers 12 popular consumer categories where the UK public like to splash the cash, comparing the spend on these categories to previous years.

The OLBG Index revealed we’re in fact spending over £13,470 a year on discretionary costs – equal to around £1,122 a month, which is 62% more this year than in 2019/2020, where we spent just under £8,300 of our disposable income on these areas.

With this in mind, here’s a look at some tips and tricks to apply to the daily life, to cut the costs of any discretionary spend.

Cut the coffee queues

Let’s start off with a classic morning coffee.

The average UK adult spends £924 a year on eating out, including drinks from cafés, according to the OLBG Index. This costs around 7% of our income (after-tax) each year. Plus, from January 2022, the average takeaway coffee in the UK jumped from £2.75 to £3.57 (based on the price of a cappuccino).

So why not brew coffee at home?

The easiest way to save money on everyone’s favourite caffeinated drink, is to try instant coffee instead. Make the coffee in a reusable cup before leaving for work, and not only it will save money but it will also save the time spent queueing at the shop.

For those who really don’t like the idea of cutting out a trip to the café each morning, why not switch to a cheaper alternative? Perhaps go for the least expensive drink on the menu, or order the smaller size to help reduce costs.

Make a fakeaway

It’s now time for lunch.

It can be so easy and tempting to head out on a lunchtime break for some fast food – or, better still, have something delivered right to the door for those working from home. Based on the research by OLBG, the average UK adult spends over £644 on takeaways in a year, taking up 4.7% of our disposable income. This is also a huge increase compared to 2019/2020, where we spent just £153 on door-to-door food deliveries.

This is a great reason to make a homemade version of a favourite takeaway. There are plenty of online fake-away recipes, which can massively reduce the costs, and taste just as good as the real deal.

A regular moneysaver would also batch cook lunches for the whole week, so there’s always food prepared, reducing the temptation to grab something quickly from a fast food restaurant.

Travelling here, there and everywhere

A good moneysaver is always on the hunt for the best and cheapest offers, including when filling up the car.

It should come as no surprise that we’re spending more and more on fuel, with record-high prices at the pump. In fact, according to OLBG, we’re spending almost a quarter of our after-tax income on motoring and transport, including fuel costs– equalling nearly £3,260 a year.

This is where it’s best to shop around. It pays not to always go to the most convenient petrol station, as this may be an expensive option. Driving a little further could mean saving some pennies when filling up.

Chilling of an evening

The day of money saving is nearly coming to an end, and it’s time to sit down and relax in front of the television.

But a moneysaver’s job is never done. Many people aren’t even aware of how much they’re spending on streaming subscriptions! The OLBG Index discovered we spend an average of £49 a year on streaming favourite TV shows and movies. This may only cost us 0.3% of our annual after-tax earnings, but it’s one of the easiest areas to reduce spend.

Why not take a look at current subscription plans and see if it’s possible to opt for a cheaper alternative? One can spend less each month on a budget plan, especially if things like ultra-HD streaming or viewing on multiple devices aren’t needed. Same great shows but for a lesser price. What’s not to love?

These are just some of the ways to start cutting costs each and every day, but with these handy tips it’s possible to begin a journey to become a fully-fledged moneysaver.

The editorial unit