Single-minded about savings
| Published date | 22 April 2024 |
| Publication title | Huddersfield Daily Examiner |
Some 8.3 million people across the UK were living alone in 2022, according to Office for National Statistics (ONS) figures.
More than half of them were women (4.4million,) while 3.9 million men were also living alone.
A recently-released Family Resources Survey from the ONS also found that, in the financial year 2022/23, among single working-age adults with no children, nearly a third (32%) of men and 27% of women reported either no savings or investments.
Lone parents were also particularly likely to have less than £1,500 in savings according to the ONS research - 45% reported this level of savings and a further 36% reported having no savings.
Shona Lowe, financial planning expert at abrdn says it's no surprise the extra costs are sometimes dubbed the "singles tax".
Here, Shona shares some tips to help make some savings:
Keep tabs on your money Shona suggests putting time aside each month to check bank statements. "The main source of income for many will be their employment, but it could also include refunds and payments from friends where you picked up the bill," says Shona.
"Making sure everything is there that should be is the foundation for the rest of your financial decisionmaking." When looking at regular payments, such as subscriptions, make sure you understand how often they come out, whether it's monthly, quarterly or annually.
"Understand what expenditure is essential for you and what is optional," says Shona.
"This is about prioritising and will help you to choose an amount you can realistically afford to save each month, and set yourself a specific goal that will allow you to measure your progress and check if you're on track."
Financial expert
If you really don't want to ditch a subscription, there might be ways to make it cheaper. For example, some gyms offer discounts for NHS workers. Or it might be more cost-effective to take out an annual subscription rather than paying monthly.
Shona says going through payments should be treated "as an down the drain". People will need to weigh up the pros and cons of water meters to decide what's right for them.
Water companies also offer social tariffs for eligible customers, to help reduce their water bills. Find out more by contacting your company.
Some people living alone may also be particularly vulnerable if they have extra communication, access or safety needs.
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