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Lifestyle 'essentials' that aren't essential at all
Apparently we think holidays, nights out and cinema trips are spending essentials, but is this sending us into financial ruin?
Lifestyle 'essentials' that aren't essential at all
The economy is in tatters, savers are getting dismal returns on their cash and inflation is still running above the Bank of England's target rate of 2%. Despite this, we're spending even more now on luxuries.
In fact, the average spend per household is a whopping £6,194 on so-called ‘lifestyle essentials’, which include nights out, holidays, haircuts and takeaways, according to new research from LV=.
Although studies like this do generally need to be taken with a large pinch of salt, the interesting news to me is that spending on these ‘essentials’ has increased by £9 billion since last year to a total of £158 billion.
That’s quite a lot considering in the same time one in five people has experienced a pay freeze.
Our top lifestyle essentials
Top of the list is unsurprisingly holidays with households spending an average of £3,250 on their yearly summer break and also on weekend trips throughout the year. Just under half (44%) of those asked classify it as an essential, while 27% put meals out in second place in their top ten lifestyle essentials.
Also featuring in the results were gym memberships, TV subscriptions and trips to the cinema.
Top 10 spending essentials
Rank | Lifestyle essentials | Total amount spent in the year to August 2012 (billions) | Total amount spent in the year to August 2011 (billions) |
1 | Holidays and weekend breaks | £83.3 billion | £81.5 billion |
2 | Meals out in restaurants | £20.2 billion | £19.4 billion |
3 | TV Subscriptions | £8.1 billion | £7.8 billion |
4 | Haircuts | £4.5 billion | £4.4 billion |
5 | Nights out in pubs and bars | £12.1 billion | £11.6 billion |
6 | Takeaways and delivery meals | £12.5 billion | £12.1 billion |
7 | Culture and arts | £2.8 billion | £2.7 billion |
8 | Gym and sport memberships | £6.5 billion | £6.3 billion |
9 | Trips to the cinema | £833 million | £804 million |
10 | Premium foods | £7.3 billion | £7 billion |
Total | £158 billion | £149 billion |
What would you class as essential?
Now while I do love a good meal out, and spending a week or two in the sun is a lovely thought, I wouldn’t call either of these essential to my life. So I find the study a little hard to accept.
This is the same for cinema trips, takeaways, haircuts and pretty much everything on this list. I don’t see them as essentials, at all, but rather nice luxuries. If money is tight there are other things I’d spend cash on first.
Rent, utility bills and food all come under the essential category for me along with travel. This is the kind of thing I would like to see included in the list and I’m interested to know how people have struggled, or not so, in paying day-to-day essentials.
According to LV= a third of us are saving money by bringing in our own packed lunches while 11% take their own tea or coffee into work, but despite this we are still spending more than we used to on these luxury items.
There’s also a slightly worryingly trend revealed by the study which shows that 23% of us wouldn’t cut back on a holiday if money was tight, while 17% refuse to give up a TV subscription and 16% would still cling onto meals out.
If you agree with this essential list and wouldn’t cut back on something like a night out if your pay packet was frozen let me know. Alternatively if you disagree, then what would you class as an essential spend?
More on budgeting:
Things you can get for free this month
Free MoneyTrack iPhone app live on iTunes
Five tips to control your spending
What should you do with £10 a month?
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7Comments
24/10/2012 10:58
Most of the things on that list are luxuries. I'd class a haircut as an essential however when someone describes a £100 trip to the hairdresser as an essential (and I know someone who pays that) then that's entirely different. I've heard the example of someone who did n't know how she was going to pay for a boiler repair then a couple of weeks later not only had a weekend away but booked an expensive foreign holiday. It's nice to go away on holiday but if money is tight, a fortnight in Mexico is n't an essential. I think it's a question of priorities and some people's priorities, especially these days, are wrong.
24/10/2012 09:29
30/10/2012 18:33
Well, I suppose everything and nothing is essential. It really just depends on your life circumstances and income coming in. For example a smartphone mobile is not essential to someone on £10k salary working on a sandwich production line whilst it's essential for somone earning £100k working at Canary Wharf. All of us have a choice, some do not choose wisely.
24/10/2012 21:49
well... it depends what kind of holiday and wat kind of hair cut? Holiday is quiet esencial for me to have a break from work and have some rest, but I usualy go hiking and stay in the motels and try organize everything myself reserch in advance and get best prices.
Haircut is also esential, but again I pay around 10-20£ and go 3-4 times a year only.
Othe listed things are much les important. The most unessential are meals in the restaurant, Pubs Night clubs and TV prescribtions. I don't even have a TV.
Haircut is also esential, but again I pay around 10-20£ and go 3-4 times a year only.
Othe listed things are much les important. The most unessential are meals in the restaurant, Pubs Night clubs and TV prescribtions. I don't even have a TV.
23/10/2012 14:06
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