Households plan cutbacks - how can you make your money go further?

As the Middle East crisis sends oil prices surging, millions of households are worried about the prospect of higher energy bills, fuel costs and prices in the shops - so it’s no surprise that many are planning to make cutbacks.

In fact, research from PwC shows that eight in ten people are planning to cut back or change their spending habits over the next three months.

So where exactly are people planning to reduce costs?

Buying less

Four in ten people (40%) plan to make fewer purchases in the coming months.

That’s one reason why it’s so important to get on top of your budget.

If you know how much money you’ve got coming in and going out, you know what you can afford to spend on essentials, occasional treats and luxuries - something we all need every now and then.

Check out our guide to how to create a budget to get started.

And give our budget planner a try - it’s free and easy to use.

Eating out less

Nearly two-fifths (38%) are choosing to stay at home more rather than eat out.

But that doesn’t mean you can’t still enjoy great food, good company and a fun dining experience.

Check out our ideas on cheaper alternatives to eating out.

Switching to cheaper products in the shops

Cost-of-living pressures are prompting almost four in ten (37%) people to buy cheaper items in the same stores.

We’ve put together some tips on how you can keep costs down in the supermarket to help you get more value at a time that costs are going up.

Getting fewer takeaways or deliveries 

One in three households (33%) are cutting costs by spending less on takeaways and deliveries.

However, you don’t have to go without your favourite meals.

Instead, try making your own fakeaway at home, such as:

• burger and chips
• a tasty chicken curry
• egg fried rice
• tortilla pizzas

It’s cheaper, often healthier and can still feel like a treat.

We’re regularly publishing tasty and budget-friendly recipes, so make sure you check back for more great ideas.

Going to a cheaper store 

One in three (30%) plan to switch to shops where they can get the same items for less.

That’s a great way to save money, particularly if you’re in the habit of going to the same shop each week.

Find out here where you can get your weekly shop for less.

Going out less 

Almost a third (29%) are cutting back on socialising to keep costs down.

So it’s important to say that if you’re worried about what you’re spending, there are ways to stay connected with friends without blowing your budget.

Check out our five ideas on how you can spend time with friends for less.

Using less energy

High utility bills have prompted more than a quarter (27%) to cut back on how much energy they use.

Small steps such as only using your washing machine when you’ve got a full load, defrosting your freezer and not leaving devices that are plugged in on standby can make a big difference to your bills.

We’ve put together a list of 50 smart energy-saving tips to help you get started.

It's also worth contacting your supplier if you’re starting to fall behind with your payments and worried about how to pay your next bill.

They might be able to offer:

• grants
• payment plans
• advice on managing your account

Using the car less

Nearly one in four (24%) people are driving less because of rising petrol and diesel prices.

Of course, leaving the car at home isn’t always an option.

So if you’re worried about how much you're paying to fill up, it could be worth making a few small changes to how you drive.

We’ve compiled a list of 50 ways to cut your fuel costs to help you save some money.

Delaying big purchases

Almost a quarter (23%) are postponing big ticket purchases, like home improvements, new furniture and new cars.

But putting off important purchases can sometimes be a false economy and cost you more in the long run.

So that’s another big reason why you need to be on top of your budget and know how much money you have available.

Buying more second-hand items 

One in five people (20%) are thinking of turning to the second-hand market to save money.

This comes at a time that more people than ever are buying and selling pre-loved goods, such as clothing, furniture and technology.

Check our recommendations on where you can find second-hand items at knockdown prices.

Delaying a holiday

Almost one in five (19%) households are planning to postpone their holiday.

If you’re desperate for a trip away but worried about the cost, check out our tips on how to keep the cost of a holiday down.

Cancelling TV or music subscriptions 

More than one in ten (13%) are pulling the plug on various streaming services.

The average UK adult wastes around £170 a year on unused subscriptions, like streaming services, gym memberships and beauty boxes.

So it’s well worth reviewing your subscriptions and see where you’re wasting money and what you could afford to live without.

The money you save could make a big difference if you’re struggling with essentials like your food shop, energy bills or debt repayments - or help build a bit of breathing space in your budget.