MONEY saving is key to many Britons, and looking to reduce bills could be one way to efficiently cut costs. And with a new study revealing the staggering cost of bills throughout one’s lifetime, people may be encouraged to take action.
Money saving is a challenging endeavour for many households, and looking to reduce spending where possible is a significant task. It is often the case that costs of essentials as well as luxuries are not fully evaluated, especially if they are set up on an automated direct debit. As such, the average cost of these day to day usages over a person’s lifetime can rack up, without a true understanding of the amount being spent.
Recent research undertaken by telephone company O2 has revealed that across an adult’s average lifetime, a shocking £1million is spent on bills.
These range from the more essential gas and electricity, to entertainment such as TV and music streaming.
But adults were also found to spend more on tech subscriptions than they do on utilities, potentially signalling a shift in consumer spending.
The survey asked 2,000 adults about their spending, and where their expenditure was going.
It found the average consumer will spend £926,720 across 63 years on gas, electricity, water, their phone and other bills.
However, while these costs are essential for many households in their day to day lives, tech related bills, which some suggest can be slashed, are also significant.
Britons were found to rack up a total average of £1,555 a year on such expenses.
And this compares to a spend of £1,491 on utilities across the same time span.
The study also found 35 percent of those asked believe they currently pay for things they don’t make the most of, or use at all.
However, while such expenses can prove a significant burden for households, many are not investigating how they can save money.
Out of those asked, 70 percent said they would not compare prices on services and contracts they pay with other providers, even it it means they can save.
But at the same time, it was estimated consumers paid an average of £170 more annually than they should for failing to shop around for a plan which suits them better.
And it also appears a lack of money saving is simply attributable to inertia by many people.
One in four of those asked said they could not be bothered to shop around for a new mobile deal specifically, and 20 percent said they did not have the time to look for better deals.
Nina Bibby, Chief Marketing Officer at O2 commented on the findings surrounding bills.
She said: “Our research shows just how much unnecessary expense we outlay over the course of our lives. Taking the time to shop around for more flexible deals that suit your individual needs, so that you’re only paying for what you use, can save a huge sum of money in the long run.
“Time poor consumers struggle to prioritise the admin of switching things up, which his why it is vital businesses do more to provide greater transparency over contracts, and that customers aren’t being penalised for loyalty.”
However, for those who are looking to save money by reducing their bills, there are ways in which to do so.
Setting time aside to look for new deals which suit personal circumstances in every area of life is considered to be a worthwhile endeavour.
Indeed, the use of price comparison sites can also help Britons in their understanding of the market, and what could work for them.
And finally, evaluating direct debit payments is thought to be a good way to cut costs.
Cancelling subscriptions or payments which are not used, or fully utilised, can help Britons potentially save hundreds across the year.