Survey finds more people focused on saving money — and dipping into their savings to cover costs

Ireland has caught the savings bug. A new survey shows people are taking steps to save money anywhere they can — but still end up dipping into their savings.

The survey of more than 500 people found the effects of the recession had made many of us more frugal. About 95% of those surveyed said they actively shopped around for better deals to cut costs, while 71% said they intended to cut back even more on non-essential items as part of their monthly budget.

Of those questioned, 57% said they hoped to make further savings on household bills and expenses, with 58% adding that they actively planned to increase the amount of money put aside each month in savings.

While the survey results might not make easy reading for those who want greater consumer spending to help boost the recovery, it does indicate a sharper focus on keeping domestic finances in order.

The survey revealed that:

-89% of women have cut the amount spent on clothing, with a move towards secondhand and vintage, while 81% of men have slashed their fashion spending;

-66% of people said they had walked or taken public transport rather than a taxi;

-24% of people have car-pooled in the past year and 29% have cycled to reduce costs;

-79% of people said they were making more meals from scratch while 73% said they made lunch to eat at their desk at work;

-19% of people have chosen a “bring your own” (alcohol) restaurant in the past year;

-74% of people said they had cut down on take-out coffees.

The survey, conducted for RaboDirect, also found that despite the various measures undertaken, just 23% of respondents actually managed to put aside money each month, with 39% saying they saved when they could.

However, while many people want to save more money — and three out of four people wish to have more money put aside for emergencies or unexpected expenses — just 37% are confident they will be able to meet their financial targets over the next year. In addition, 71% said they had dipped into their savings over the past year to cover costs, often for an unforeseen bill.

On the new culture of saving, Dr Melrona Kirrane, organisational psychologist at Dublin City University, said: “The downturn has had an enormous effect on consumer behaviour, changing the way people in Ireland think about spending and saving.”

And while personality has a big role to play, it seems that most of us are now keeping track of our finances to an extent that would have been unheard of just a few years ago.

“This shift in attitudes is likely to have a very positive, long-term effect on how people manage their finances.”