It’s easy to waste money without realizing it. In fact, most of us probably do it without even thinking about it. We might go out for drinks a few nights a week, or spend too much on our monthly Netflix subscription. Regardless of where the money is going, if it’s not adding real value to our lives, then we’re wasting it!
Surveys consistently show that the average U.K. household wastes around £9,000 each year. That’s around 28% of the median household income! If you want to get a handle on your wasteful spending, keep reading—we’ll be going over the four things Brits waste the most money on!
The 4 Biggest Wastes of Money
1. Clothing and Beauty Products
According to the Independent, households waste an average of £1,200 each year on clothing and beauty products that are never worn or used. Why? In most cases, the decision was motivated by the fear of missing out on a sale.
To stop wasting money due to impulse buying, you should step away from the temptation — take 24 to 48 hours to think over the purchase. If you can’t stop thinking about it, it’s likely that the purchase will add value to your life. If you instantly forget… well, it was probably for the best!
2. Takeaways
Ordering takeaways can be one of the biggest drains on your bank account each month.
In the UK, people waste an average of £2,000 on takeaway meals and drinks that end up in the bin.
Independent
To stop wasting money on takeaways, you should set a strict monthly budget to get your spending under control. Many banking apps have budgeting features built-in, but if yours doesn’t, we recommend financial aggregator apps like: Chip, Plum, or Emma
In addition, it can be helpful to keep your kitchen stocked with the ingredients you need to make low-effort comfort meals for the days you’ll be tempted to order in.
To help with this, read our article explaining how you can save money on food shopping.
3. Mobile Phone Contracts
The average U.K. household wastes around £528 on unused data, minutes, and texts each year.
How to save money on your mobile phone bill
If you’re guilty of overspending on your mobile phone bill, it’s time to make a change!
The easiest way to save money on your mobile phone bill is to switch to a prepaid plan. Many providers offer prepaid plans that are significantly cheaper than their postpaid counterparts.
Another way to save on your bill is to downgrade your current plan. If you don’t need unlimited minutes or data, there’s no reason to pay for them! Finally, consider using a mobile phone contract comparison tool (like Compare The Market) to find the best deal for your needs.
4. Subscriptions
Whether it’s your Netflix subscription, your gym membership, or your monthly cable bill, subscriptions can be a big drain on your wallet. If you’re not using them or if you could find a cheaper alternative, then it’s time to cancel them!
On average, U.K. households waste around £265 a year on subscriptions they rarely use. To avoid wasting money here, take a closer look at your monthly outgoings and cancel the subscriptions you don’t need. If you’re not sure which subscriptions to cancel, ask yourself these questions:
- Am I using this service to its full potential?
- Could I find a cheaper alternative?
- Do I really need this service?
Bottom Line: You Could Save Up To £9,000 A Year!
We’re all guilty of wasting money in some way or another, but it’s time to get those bank accounts in check. By taking some of these tips on board, you might be able to save as much as £9,000 a year!
If you’re ready to start saving, we highly recommend writing a budget. This will help you stay on track to achieving your financial goals.
James Banerjee is an Account Director who graduated from the University of Kent in 2014. He works in SEO on clients such as HSBC UK and Nestle and he has a keen interest in personal finances and money-saving advice.
