The British public’s personal financial confidence has rebounded in the last 12 months, according to research from discount website VoucherCodes.
According to the company’s research, three quarters (75%) of Brits are positive about their personal finances in 2018. This is a remarkable turnaround in consumer confidence from just two in five (41%) last year.
Those who are positive about their personal finances expect a pay rise this year and more disposable income, on average £360 per month - a 3% increase on 2017.
But many still plan to take time to budget their finances responsibly (22%) and shop around to get better deals (25%) in order to help achieve their financial goals.
Holidays, house renovations and paying off debts are the biggest spending priorities. However, indulgences in takeaway food, meals out and expensive groceries are expected to be sacrificed in order to achieve these goals.
For those who felt negatively about their personal finances, the biggest concerns were rising food prices (62%), household bills (54%), concerns about the weakness of the pound (38%) and uncertainty surrounding the outcome of Brexit (30%).
See the table below for the full results.
Top 10 2018 spending priorities and cut backs:
|Holidays - 39%||Takeaways - 26%|
|House renovations - 16%||Meals out - 24%|
|Pay off personal debt (e.g. credit card) - 14%||Expensive groceries - 21%|
|New car - 9%||Socialising at bars/clubs - 16%|
|White goods and appliances - 8%||Items for the home - 15%|
|High-street clothing - 8%||High-street clothing - 15%|
|Personal technology (e.g. tablet) - 7%||Coffees - 13%|
|Home technology (e.g. TV) - 6%||Holidays - 13%|
|Fitted kitchen - 5%||Personal technology - 11%|
|New bathroom and paying off mortgage - both 4%||Designer clothing and gym memberships - both 10%|
Source: VoucherCodes, January 2018.
Getting into the savings habit
Brits are hoping to save more money in 2018 too, according to the research. They plan to save, on average, £221 - an increase of 13% from 2017. People cited that they wanted to save for a holiday (25%), top up their retirement funds (15%), or buy a property (10%).
Paul Lewis, senior director of marketing at VoucherCodes, comments: “It’s reassuring to see the nation feeling positive about their finances for the year ahead, despite ongoing economic uncertainty having an impact on the cost of living for many in the UK.
“As prices on day to day expenditure continue to rise, we expect to see a rise in Brits shopping around to try and get the best deal for themselves – or indeed making sacrifices and cutting down on smaller indulgences like takeaways and daily coffees to help save up for bigger expenses like holidays.”