Despite the generally gloomy outlook of the British economy, new research reveals that the nation is spending £149 billion on ëlifestyle essentialsí.
The latest research from LV= found that the average household spent £5,850 in a year on luxury items. This includes holidays, expensive meals, cultural events, nights out and cinema trips.
The latest figure represents an increase of £5.7 billion on the amount spent on luxury essentials from last year.
The cost of living is soaring and inflation recently increased to 5.2%, this is having a direct impact on the nationís personal finances. The research found that over three quarters of people are making financial cutbacks on basics to maintain their lifestyle.
51% of people still consider things like holidays and weekend breaks a ëlifestyle essentialí though. The nation spent £81.5 billion on such trips during the first 8 months of this year. This is the equivalent to £3,200 per household.
ëEating outí is also valued highly as 31% of those questioned saw this as a ëlifestyle essentialí.
Mark Jones, LV= Head of Protection, said; “The nation is clearly reluctant to give up what they class as ëlifestyle essentials’. And the increasing cost of these items and services is putting people under pressure financially. The need to ëget away from it all’ is important to people when economic times are hard, which explains why holidays and breaks remain the lifestyle aspect that most people are unwilling to do without.
“People’s lifestyles are, rightly so, very important to them to maintain, despite the economic conditions. And people should be encouraged to consider how they will continue to pay for the real essentials as well as some of the little luxuries should their financial circumstances change.”
If Brits were to experience a drop in income, 20% said they would not want to go without holidays and 12% wouldn’t trim their budget for haircuts.
Further research from a price comparison website found that 71% of people are now turning to credit cards in order to pay for everyday essentials and luxuries.
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