We all love payday — the day where we think we can splash out the cash and buy items that we probably don’t need. We all make New Year’s resolutions, and they can often be disastrous, with 80% of people failing by February and regretting it instantly — have you managed to stick at yours? One of the most common New Year’s resolutions is to cut down on spending, and although this sounds achievable, if you don’t have a fully-pledged strategy in place, the likeliness of failure spirals out of control.
We’ve all been victim to an unexpected expense, and most of the time we’re not financially prepared to deal with it — from broken cars to faulty electrics. It all adds up. For that reason, we’ve made some assessments on how those extra savings can come in handy if something like that was to occur.
The cost of travel
Travel can be costly, but there are ways that you can make appropriate changes to make huge savings. Using a megarider, you will be able to travel as much as you want and can tailor your own needs to the ticket type. Whether you’re in need of a weekly bus pass for your travels, or a monthly one — you will find yourself making a huge saving in comparison to buying a ticket every day.
If you drive your own vehicle, the cost over your entire lifetime can come to £168,880 — an astonishing figure when looking at the yearly contributing costs. With efficiency growing in public transport, there is no reason for you not to consider making the bold move that could help you fulfil your resolution this year and save you a fortune.
The main factor into the overall cost of your vehicle comes from petrol expenses — which totals £1,052.04 annually on average. Servicing a vehicle costs can add up to £441 over a twelve-month period — which can change depending on the individual’s situation. MOTs can cost up to £168.46 annually. Cost of parking is on the rise, and with more vehicles on the roads, there seems to be a higher demand. Over the year, a motorist can find themselves paying £145.80 on parking.
When it comes to insurance, this can sway dramatically as younger drivers will find themselves paying a higher cost to be on the road — on average, insurance costs an experienced driver £436 every year. Tax can equate to £116.35 on a yearly basis. Car supplies can cost a driver £29.61 and if you were to go abroad and wished to drive, holiday rental cars can leave you £180 out of pocket. Speeding tickets equal £25.12 for the average driver here in the UK. This would cost a driver £2,594.38 in total where commuters find themselves paying considerably less for a significant service — imagine the saving you would make with a megarider ticket!
How much does your lifestyle cost you?
How much you could save for making your own coffee
With over 21,000 coffee shops in Britain — MyVoucherCodes suggest that coffee drinkers across the UK visit three times per week or more. This means that Brits visit coffee shops around 156 times a year with an average spend of £8.52 — with travel expenses, this could go up to £13.85. This creates an annual average spending of £2,600, a majority of which could be saved if you were to opt for taking your own coffee to work.
A 250g pack of Douwe Egberts ground coffee can make up to 30 cups — which shows that you could be making more for less. When looking to see how much a 1kg pack would cost, Amazon has priced the coffee at around £15, meaning that each cup of coffee would cost close to 13p. Try taking a flask to work and even purchasing an on-the-go coffee cup that will see you through your day.
How much you could save from quitting smoking
After a packet of 10 cigarettes went off the market, the only alternative was a packet of 20 which have an average price of £10.40 — if you were to smoke 20 cigarettes each day, you could make a huge saving of £3,796. MoneySupermarket.com has stated that non-smokers pay around £6,309 less for life insurance, which could be something worth investing in for the new year.
Many people are turning to vaping as a cheaper solution. 10ml bottles of liquid cost around £5 on average — saving those who turn to vaping around £1,900.
How much you could save from making your own lunch
With food trucks and office deliveries becoming more common, workers are taking the more convenient route to buying lunch rather than making it themselves. But what if we told you that, on average, forking out for lunch every day could cost you £1,288 according to research carried out by VoucherCloud. Evidently, you could make a huge saving by preparing your lunch at home — whether this is making a quick sandwich or taking in a tin of microwavable soup to heat up. When we looked at the total working days in 2017, there was 252 — if we went by Poundland’s price of tomato soup, which is 50p, you would find yourself paying £126! A massive saving for anyone looking to cut down on costs.
The most common types of unexpected expenses
54% of 2,000 people asked said that they experienced an unexpected expense that they weren’t financially prepared for. On average, these costs equaled to £248.70 — showing that any saving is beneficial for occurrences like these. 47% of these issues happened in the kitchen, a room which is essential to the day-to-day running of any home, and if you don’t have the money to pull out instantly, it could cause an everyday stress. Using the savings you would have made by taking your own lunch and coffee to work, quitting smoking, and travelling smarter — you will be able to make life easier. It was also found that 35% of people had to use a credit card to cover the costs of unexpected expenses. With 18% of them not being able to pay more than £100 on their own, 17% had to borrow from friends and family!
This article was brought to you by Stagecoach, who offer cheap bus fares — how will you be making financial changes this year?