ASPIRATIONAL SPENDERS

Did you come back from holiday absolutely broke, but with a fantastic new handbag and an iPod from duty-free? Then you could be an aspirational spender...

The age of celebrity, advanced technology and competitive gender relations has created a new breed of consumer: the Aspirational Spender.  Known to want to keep up with the Jones’, these individuals’ spending appetites are fed by what they don’t have whether relating to their home, wardrobe, social life or car.  The Aspirational Spender wants to impress and to do so, regularly lives beyond their means.     

Gill Wrigley, founder of www.goodbye2debt.co.uk says: “Today, consumers are privileged to have such an incredible amount of choice when they hit the high street however, as UK debt levels spiral, it is worrying to still see consumers choosing to jeopardise their financial health simply to keep up appearances.

“In an increasingly materialistic world the worst thing to do when you are feeling the pinch is to continue to try and keep up with the Jones’; more often than not those who seem to have it all are the worst off and owe far more than you.

“If this sounds like you, always remember that the most important thing is to take control – acknowledge the situation you are in and seek professional help if necessary.”

How to spot an Aspirational Spender:

• They own more than one credit card and/or store card and only pay off the minimum payment
• They spend more than they earn by
  • Often trading in their existing car for one more expensive
• Insisting on paying for meals/drinks
• Making a show of their latest extravagant purchase
• Regularly sporting the latest branded fashions
• Going on holiday to the latest “hot spots”
• Living in a ‘trendy’ area where property prices are inflated
• Eating and drinking at the most exclusive bars/restaurants

If you feel like you can relate to some of these points, fear not, you are not alone.  Gill has compiled the following tips to help you wave goodbye to your aspirational spending debt and feel more positive about your finances:

Every-day money-savers

• Stop, think and make a list – before purchasing an item, whether clothes or food, think about how much it costs and ask yourself if you really need it.  Making a list before shopping can help you avoid those impulse buys.
• Seek cheaper alternatives – they may say cheap chic is coming to an end but if it can save you £30 on a top you will wear twice, opt for it.  Similarly, opt for own-brands – supermarket food and clothing ranges are affordable and exciting.
• Eat out less – whether it’s your morning coffee shop latte, lunch deli sandwich or drinks after work that lead to a bite to eat, it adds up.  Let your wallet and your figure feel the benefit of home prepared sustenance.  Batch cooking large amounts of food and freezing it is also a cost effective option in terms of ingredients and the energy used to cook the food.
• Walk – keep your carbon footprint to a minimum and save money at the same time.  Whilst you’re at it cancel your gym membership unless you are going to go three times a week.  If it is impractical to walk, car share. If you commute to work, or do a school run, team up with neighbours and share the journey.
• Quit smoking – it may be what’s making you feel better when you look at your bank statement but your 20-a-day habit is costing you nearly £2,000 a year- leave your cigarettes out in the cold and start saving your loose change - you'll be amazed how quickly silver and pound coins in a jar turn into notes.

Long-term money-savers

1. Make a list - list ALL your outgoings and compare these with your income, you may be surprised at hidden expenditure that is eating away at your bank balance.  Once you’ve listed your outgoings, ensure you pay all your bills by direct debit. This means they're paid on time, you get used to not having the money and you can budget properly. Often there are discounts for doing so too.
2. Clear your credit cards – if you can’t pay off your bill in full at the end of each month, you can’t afford what you’re buying.  If you are purchasing something necessary but expensive eg: furniture, consider a low-cost loan as an alternative.  Do the sums: a credit card debt ( APR 15%) of £2,200 over three years will cost £545 in interest. A loan at 6% will cost £209. A saving of £336, based on repaying £100 per month.
3. Re-consider your fuel/telecoms supplier - as the global demand for power threatens to outstrip supply, prices are rising.  However, the domestic market for fuel is competitive and you can benefit from researching different supplier price options.  Similarly, small changes in your energy usage will soon add up to a significant reduction in your bills.  For example, don't leave electrical equipment on standby, turn off the lights when you leave the room and switch to energy-saving light bulbs, available at all major Tesco stores.
4. Create your own bespoke holiday – research and construct your own holiday on the internet and compare the price to the package holiday advertised in the brochure; you may be pleasantly surprised at the saving you can make.
5. Make your money multiply –take advantage of an Isa tax-free savings account which means you don't pay any tax on the interest accrued.  Make use of any spare money in your current account and transfer it to your Isa – you could earn up to £150 a year without even trying.  

Visit www.goodbye2debt.co.uk to view the different debt solutions available.