Would you change your spending habits if you had more money?

The cost-of-living crisis has been a hot topic for a while now, affecting how we shop, what we buy, and how much we save. But would we change our spending habits if we had a bit more spare cash?

That’s the question accounting firm KPMG asked, to shed light on buying and saving behaviours during these challenging times.

And the results may surprise you.

The findings

When people were asked about their potential actions if their household essential costs eased, the results were quite telling:

• Only 9% would buy less own brand or value products.
• Just 9% said they wouldn’t shop at discount or lower price stores as frequently.
• A mere 6% indicated they would buy fewer promotional or discounted goods.
• Another 6% said they’d use retailer loyalty schemes less.

These numbers suggest that most of us have developed habits we don’t want to change, even if our finances improve.

Saving over spending

Interestingly, most people said they would prefer to save any extra funds, while others said they’d opt for more conscious purchases:

• Two-thirds of respondents said they would save more.
• 14% would choose to buy more sustainable or ethical products.
• 12% said they’d buy more branded goods.

Current spending trends

The pressures of essential costs have led many to tighten their belts.

So far this year, around half have cut non-essential spending. On average, they’ve reduced their monthly spend by about £72 compared to January 2023 – a significant amount for most households.

For those who haven’t cut back, many reported spending at the same level as the end of 2022, indicating a level of financial stability.

Looking ahead

The cost-of-living crisis has undeniably changed the way we think about money. Even if the pressure on essential costs eases, it seems many of us will hold onto new habits. Expenses can quickly add up so check out our tips for saving and boosting your money.

If you’re struggling to cover your essential costs, it might be time to ask for help.

We can help you with everything from budgeting to making sure you’re getting all the benefits you’re entitled to, as well as advising you on debt solutions (some are free, there’s a fee for others).

All of our debt advice is free and impartial, and you can access it online 24/7 or over the phone during our office hours – 0161 518 8285.