Talk thrifty to me
On high alert to price hikes, so what is gaining attention?
Two years of living in pandemic times have had a significant impact on our finances. While some have been fortunate enough to see their savings increase, the reality is that many are seeing their financial struggles deepen.
Stop the spend!
With prices skyrocketing while salaries have stayed the same or even shrunk, savings have become a luxury that few can afford – and this is especially true for families. In plain terms, almost half have seen their savings decrease and the majority could not survive more 2 months without income.
Naturally, this has led to a change in attitudes and behaviour when it comes to spending. We have become less spontaneous, as the cost of things now takes centre stage; and in turn, this creates the disconcerting feeling of ‘double spending’:
We spend once when planning by mentally adding up the imagined total as we book an activity
And then we spend again during the experience, when we actually pay the bill
It’s the worst of both worlds.
Overthinking about prices, we change our narrative and hopes to a simple life our aim – and rein in spend wherever we can to foster a feeling of financial safety.
Protect the money I have
Splashing on clothing, cosmetics and brands might have been a simple treat before, but it now feels downright extravagant. Many are turning to buying cheaper clothes, but even these are purchased in a more mindful manner – buying what I really need, rather than what I find on sale.
On a day-to-day basis, we look for tactics to balance smart spending without completely neglecting our needs:
Going for own-label goods
Back to basics on beauty
Copies of designer brands
Credible, streamlined choice at discounter supermarkets
Searching for creativity to make average look top
But more than that, we want to future-proof our money, and this is difficult when we feel less and less confident about our ability to manage our finances – so talking to banks for support and switching to a fixed-rate mortgage have become increasingly popular.
How to win?
Supermarkets have been playing well to this goal of a simpler, more affordable life, earning trust from customers. Brands can help by acknowledging the nation’s financial struggle and coming up with inspiring ways to make their money go further.