Little Spending Cuts Can Go a Long Way

Written by Karen Bryan

Virgin Money has a new infographic which illustrates just how much you could benefit in the future by reining in your spending now. The infographic illustrates that you could save up to £5,000 a year by making some lifestyle changes.

Saving £5,000 a year for 10 years would net you a total of £55,090 (with interest added). That amount of cash could be enough for a deposit of a least 20% towards buying a property in most of the UK. You could also use the saved cash to build up a personal pension to top up your state pension, or allow you to retire early. A tax free Cash ISA, with a current annual allowance of £5,760, is another more flexible home for that extra money.

virgin-cost-of-lifestyle

I went through the money savings tips on the infographic. To a large extent, it preaches to the converted. It’s also easier for us not to be tempted into spending money, as my husband is retired and I work from home.

I estimate that taking lunch to work saved my husband and I more than £1,000 a year over a period of more than 25 years.  We never buy takeaway coffees, we have our flask with us on days out. I always think that food takeways are a waste of money. Why spend £6-£7 on a pizza takeaway? You can buy a pizza for £2 at  the supermarket and pop into the oven at home; an instant saving of a few pounds, even after factoring in the cost for electricity to heat the oven.

We do eat out once or twice month; generally spending under £10 each on a meal. That’s the one area covered in the Virgin Money infographic in which we could cut back. However, that’s something I’d only do if money was really tight. I always advocate having a leisure budget; I allow £60 a month in our budget for days and meals out.

Neither of us smokes and my husband has an occasional glass of wine or beer. We don’t buy magazines. We wash the car at home, but that could be harder if you live in flat.  Our daily walks give us plenty of exercise, so no need for gym membership.

 

 

One Response to “Little Spending Cuts Can Go a Long Way”

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