We’ve all cut down on social spending and many of us are now working from home. So, exactly how much are we saving each week by not socialising? And what should we be doing with that money?
How much are we saving?
A study by finder.com showed that on average we’re saving £54.67 each week by not doing leisure activities. This means that over 10 weeks, some of us will have saved over £500 by curbing our social habits.
According to finder, Millenials (those born between 1981 and 1996) are currently acquiring the biggest savings. The average weekly amount saved for these young professionals is £125.51, which is calculated by saving £70.35 on going out and £55.16 by working from home (so not spending on lunches, commute, etc).
Find out more here.
So, what should I do with my savings?
It’s a personal decision. Only you know what’s best to do with your new savings fund, but here are some of our most sensible tips:
Pay off existing debt
It might seem a bit dull, but the benefits are three-fold. 1.) You’ll reduce your debt-to-income ratio and potentially your credit utilisation ratio too. 2.) improving those numbers will likely see an increase to your credit score and 3.) You’ll save money in the long run, as it’s highly unlikely the interest you’d gain from a savings pots would be anywhere near the interest added on to debt.
Open a savings account
Whether you look at a Lifetime ISA or a high-interest savings account, make sure your savings are somewhere they can gain interest. Find out more about different savings accounts.
If you’re looking for a longer-term investment, speak to a financial advisor to explore stocks and share, pensions and other options.
Whatever you decide is best for your circumstances, ensure you don’t leave the extra funds in your current account where they’re easier to spend and are unlikely to gain any interest.
Note: Of course, many of us have taken pay reductions, are currently on furlough or job hunting, so a reduction in outgoings might not mean spare funds for everyone. Find out what to do and what help is available if you’ve recently lost your job.
Disclaimer: All information and links are correct at the time of publishing.