Brits have around £250 a month less disposable income due to cost-of-living crisis

One in six Brits (16%) are feeling anxious about managing their finances over the coming year – as the cost-of-living crisis has left them with around £250 a month less in disposable income.

The biggest financial hits adults have taken this year include household expenses and travel costs – with commuting costing around £221 a month this year, compared to just £116 a month in 2021.

And those who pay mortgages or rent have been set back an extra £60 a month on these payments over the last 12 months, while gas and electricity bills are now around £100 a month more pricey, costing an average of £248.

This has left personal savings pots struggling, too, taking a dive of around 21% in the last 12 months – with three in ten now living paycheck to paycheck.

And almost a quarter (24%) don’t expect their financial situation will change during 2023, according to the poll of 2,000 adults.

However, despite having less cash to spend after bills each month, Brits are still doing all they can to plan for the future – with six in ten managing to continue to save regularly.

In fact, adults are still putting away the same now as in 2021 – with nearly a fifth of their monthly pay-packets being stowed away on average, despite many having to dip into their savings this year.

It also emerged 35% have achieved all the financial goals they set for themselves in 2022, while a further 19% are happy with the progress they made.

Respondents were able to make progress by cutting back on non-essential spending across the board (38%), going out less (27%), budgeting more (27%), and sticking to a strict budget (22%).

Others found ways to earn more money by selling unwanted possessions (21%), starting a side hustle (18%), working overtime (18%), securing a promotion or pay rise (12%) – and even changing jobs (11%).

Brian Byrnes, head of personal finance at Moneybox, said: “It’s clear from this research that where possible, people are doing all they can to protect their savings and achieve their financial goals – despite personal finances being stretched so much in such a short space of time.

“But of course, not everyone has the flexibility in their budget to plan for the future right now.

“If that’s the case for you, remember the most important thing you can do for your financial wellbeing in 2023 is build positive financial habits that will set you up for success in the long term.”

The financial crisis appears to have prompted many to take a fresh look at how they manage their finances, with 27% setting a budget for the first time in the last year.

Two in five (41%) have started thinking about how to become more financially resilient in the future, and a quarter (26%) are planning ahead more now than ever before.

More than a third (34%) even feel they have more control of their finances, and 29% feel they are better at managing their money now than before the financial crisis.

Looking ahead to 2023, as with 2022, building up a rainy-day fund is the top financial goal for the next 12 months – with 34% wanting this safety net in case of further price increases in 2023.

And three in ten want to ensure they have enough cash to fall back on in case they run into any job issues caused by the impending recession.

Nearly a fifth (19%) are saving toward a house deposit, while 11% are setting themselves the goal of maxing out their annual Lifetime ISA government bonus in 2023.

And 25% intend to prioritise saving and investing more in 2023.

The study, carried out via OnePoll, found 29% are optimistic that if all goes well, they will be able to achieve their financial goals as planned this year.

A further 23% feel confident about their financial situation, and are focused on long-term opportunities to build wealth.

Brian Byrnes added: “At one time or another, most of us will admit to not spending enough time managing our finances to help us achieve our future goals.

“Committing to taking some simple steps now to build positive financial habits – such as budgeting, regularly reviewing your spending, and setting achievable financial goals – will all help you take control of your future finances, and manage the impact of rising costs of living with greater confidence.

“It will also set you on the right path to achieve your goals as quickly as possible in the future.”