Almost nine in 10 (88% ) people living in Ireland are planning to take cost-cutting measures in the hope of slashing their spending this year.
This comes as more than a third (35% ) report to being in a weaker financial position today than they were a year ago.
Research released today by Aviva Insurance Ireland DAC (Aviva ) has also revealed that the top five cost-cutting measures which people are planning to embark on this year are:
Shop around for better deals, with more than half (54% ) planning to do so
Eat out less - more than four in ten (42% ) intend to do so
Buy less clothes (38% )
Use home heating less (32% )
Do more ‘free’ activities, such as cycling, walking and sea swimming (27% )
In the survey of 1,000 adults nationwide 37% of women said they were in a weaker financial position, compared to 31% of men. The research also revealed that age was found to have a considerable sway as to how upbeat an individual is about their finances. Those aged between 25-34 were most likely to say they’re in a stronger financial position today than a year ago, with more than half (52% ) expressing this view. However, those age 45-54 are most likely to feel they are in a weaker financial position at 39%, while those over 55 are most inclined to say their position is the same (42% ).
The Aviva survey also found that, although the majority of respondents (65% ) are in the same if not better financial situation than they were 12 months ago, almost all are still planning to make some changes to their consumption and spending habits to cut household expenditure.
Further highlights from the Aviva survey include:
One in three (32% ) plan to use their home heating less in order to cut costs, while only a fifth (19% ) are prepared to cancel their streaming services.
People are more inclined to give up takeaway teas and coffees, with 26% saying that they would do so, rather than using their car less at 17%.
Women (61% ) are far more likely than men (46% ) to shop around for better deals.
Women are more likely than men to say they’ll buy less clothes (46% v 29% ).
Men are more inclined than women to say they’ll use their car less (20% v 15% ).
One in ten (9% ) of those surveyed aged 25 – 34 are prepared to cancel their health insurance in order to save money. This was three times as high as the number of people aged 55+ (3% ) who were prepared to do so.
Unsurprisingly the youngest age group (18-24 ) are the least likely to be willing to socialise less (13% ).
Those over 55 are the most likely to say they don’t plan to make any changes to their spending habits with more than one in five (22% ) saying this. By contrast, the youngest cohort (18-24 ) and arguably those with the least amount of money are most likely to change their spending habits, with 96% saying they would do so.
“There is no doubt that households have come under pressure as a result of the cost-of-living, but if a positive can be taken from this, it’s that it has probably made a lot of people more budget-conscious and more aware of simple steps they can take to save money. It is often only at times like this that people learn the value of cutting back and as a result they take up good budgeting habits that they continue to use well into the future,” Julie Frazer, Aviva, commenting on the findings, said.
