Almost two-thirds of adults are planning spending cuts – with takeaways, holidays, and charity donations among the top items to curtail. The study of 2,000 adults found those looking to curb spending are plan to cut down on days or evenings out (22 percent), and donations to good causes (26 percent).
Products such as booze (16 percent) and cigarettes (10 percent) also face the chop, along with shopping for clothes or shoes (18 percent).
This could be in part due to a sustainability drive, with 34 percent more likely to buy second-hand items.
There’s also a growing sense of self-reliance, too – as 36 percent of people are likely to tackle DIY projects themselves, as opposed to hiring tradespeople.
Vicki Joshi, chief customer and brand officer at AXA UK, which commissioned the research, said: “People are having to make tough choices when it comes to their finances, and will likely have to continue to reduce spending on things they otherwise would like to keep up.
“Especially when it comes to insurance, it’s no surprise that cost continues to be the main consideration for most, as people rightly want a competitive price and to know they’re getting a good deal.”
Despite the economic downturn and cutbacks, people remain optimistic about their financial health, with 57 percent rating their situation as above average.
And 57 percent also think they’ll be in a better position next year.
Despite reducing spending in many areas, there is a reluctance to ditch insurance policies – with 70 percent and 71 percent having car and home insurance respectively, while 44 percent have breakdown cover.
Other popular insurance products include travel (28 percent) and pet insurance (25 percent).
Almost half of those polled (47 percent) consider price to be the most important factor when buying insurance, ahead of the level of cover (26 percent), and it being from a brand people trust (12 percent).
For those thinking about getting insurance in the next three months, half said they were doing it for peace of mind.
Vicki Joshi added: “It’s essential their policy has the right level of cover for when they need it the most.
“While there are unquestionably difficult circumstances, it’s encouraging to see most people are optimistic about the future, and are making short-term changes to protect the things that matter to their future.”
