A quarter of UK adults plan to cut their spending in 2015 amid fears that it could be a tougher year than 2014, new research shows.
One in five people expect to face financial hardship in the coming 12 months, according to the Money Advice Service.
Meanwhile just one in ten people think they’ll cope in a better way than they did this year with personal finances the main point of concern.
There were a wide range of reasons why people felt things could get more financially difficult in 2015 than 2014, with the main issue being inflation – noted by 54% of people.
Some 36% also feared they would not get a pay rise in their workplace while 17% are even expecting a pay cut.
Of those that expected the situation to improve, 48% expect a pay rise and one fifth thought they would not face the burden of loans as they would all be paid off. Just shy of this figure (17%) also said they faced a major expense in 2014 that they did not expect to have again in the coming year.
More than just a hope, these projected improvements in pay and personal financial situations could become a reality as improvements in the economic condition of the UK continue to be felt.
Managing finances in 2015
Nearly half of all adults in the UK who plan to cut their spending next year will do so by finding and purchasing cheaper alternatives to items they have bought in the past.
Socialising less and reducing clothing spending were also key areas where people could save – noted by 41% and 35% of adults respectively.
Cutting down on day to day spending by taking a packed lunch to work was viewed as one way to reduce costs, with a quarter of workers saying they were planning to take this approach.
Spending less on others was also viewed as a handy way of reducing bills in 2015 while 22% of Brits will target their daily finances by creating weekly or monthly budgets.
Saving and thinking ahead
Putting some money aside each month can help to build up savings and 36% of people felt they need to put more effort into living within their means in order to boost their savings pot.
Taking proactive steps towards money management is the first step towards a financially strong 2015, as failing to take action could result in serious financial hardship.
With the turn of the year comes an opportunity to manage money differently and ensure that there is cash set aside for a rainy day if it should ever be needed.