Three in five Brits worry they won’t have enough money for the year

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Takeaways are the most common “luxury” that almost two-thirds (63 percent) of Brits plan to slash their spending on, followed by clothing, shoes, and accessories (59 percent), and holidays (40 percent).

And the poll of 2,000 Brits, conducted by the UK’s largest digital bank, Monzo, between December 22 and 29, further revealed that almost half (46 percent) have already cut costs by switching to shopping at a cheaper supermarket.

When it comes to savings, almost a fifth (18 percent) expect to put aside nothing this year, in the face of rising energy bills, higher interest rates, and needing to pay more for essential goods.

And 69 percent said the idea of trying to save money feels “overwhelming” at the moment – with 26 percent even having given up on their dreams of buying a house, as a direct result of the cost-of-living crisis.

However, almost two-thirds of those polled, admitted they had never heard of a savings challenge – simple budgeting activities that help people achieve specific financial goals, often in a more manageable and realistic way.

But encouragingly, those who had tried such a challenge have saved, on average, an impressive £1,700.

Sujata Bhatia, Monzo’s Chief Operating Officer, said: “Understandably, the prospect of saving is daunting for many at the moment, but it doesn’t have to be.

“At Monzo, we know that saving small amounts over a long period of time can still have a hugely positive impact on your finances.

“Monzo customers saved over £175 million last year using our saving tools and features, such as Round-ups – meaning whenever more than £1 is spent, the difference is rounded up and added to a Savings Pot automatically – and IFTTT challenges.”

Monzo has partnered with financial educator and author, Alice Tapper, who has shared her top financial tips to help people feel more empowered to save small in 2023.

The digital bank has also shared a series of ideas to help customers stay on top of their money and make it go a little further, as part of its Small Change campaign. To find out more, visit here.

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