It is in our human nature to want things that other people have. Hence, at times people spend their savings on something outrageous or something they have been dying to buy for ages. It might be a television set your next door neighbour had just bought or a gaming console that just came out that triggered the impulse. However, every person has different needs and from time to time they get the urge to splurge a little.
Following are some of the things that people spend their savings on:
People often open a bank savings account just for the sake of saving up for a big investment, like buying a car. They might see their neighbour or friend driving something fancy and decide it is time for them to upgrade too. An average person spends around £3,900 in a year, which means around £80 a week. This means, if a person decides to invest in a car, then this amount increases and the money is spent from a savings account.
However, how much they earn on their savings account varies depending on their choice of bank and terms. This directly translates into the time required to save up on their investment.
Restaurants and Hotels
A single person living in a dorm or an apartment usually does not cook. There might be a dozen reasons for ordering food such as working late or they often forget to eat and groceries go bad, etc. An average person spends around £3,016 in a year, which means around £58 a week on food. This amount is only 8% lower than the amount spent on restaurants and hotels. Most people order pizza, Chinese or Thai food on a regular basis, which is how they explain spending their savings on something they love.
Clothing and Footwear
Everybody likes to wear good clothes, especially on special occasions. People often spend extra money on clothes for their first day at job, for a wedding, or for a party, among other occasions. Though the amount spent on clothing is less than that spent on cars and restaurants, it is still something that people pay from their earnings from their bank savings account.
Nowadays, men and women both spend equal amount of money to make themselves look beautiful. While a woman might go to a spa to get the royal treatment, a man will go get a sauna bath to relax from his hectic work schedule. The additional cost of these services are often borne using one’s earnings from a savings account.
People often go a little crazy in buying the latest household appliances or goods such as a baker might want a six burner stove with an oven while an avid football watch might want a 52″ inch plasma. People usually indulge in these items if they have a bank savings account.
In UK, people spend most of their money on transport, food, and recreation. The amount of money used above their spending limit usually comes out of the earnings they gain from a savings account.