What Is Cost Control?
Cost control is the process of managing your expenses in order to assist you in reducing unnecessary costs as much as possible as well as identifying areas of cost overspend. The calculation of your expenses, the developments of an agreed-upon budget, as well as the management of potential expenses are all part of cost control.
How Much of Your Income Should You Spend on Everyday Expenses?
Your everyday living expenses will differ depending on your income. When trying to save, the 50-30-20 approach might help to simplify the procedure. Your income is divided into three categories such as needs, wants, and savings. This budgeting procedure suggests that individuals save up to 20% of their monthly income, which leaves 50% on necessities and the other 30% on optional items you want.
Maintaining control over your spending and income is critical, and you can do so by using the FREE worksheet we’ve created for you. Developing a consistent sense of organizing your expenses into needs, wants, and savings can assist you in making good financial decisions. Additionally, it will add to your financial wealth by allowing you to make the most out of the resources you have earned through planning and saving.
Calculate the money you need for important expenses
Food, accommodation, transport, and fuel account for more than half of our expenses. When it comes to other necessary expenses such as food or clothing, you could find inexpensive solutions for it. For example, with stores such as Costco, Lidl, One Stop, Morrisons, Makro, to name a few, you could get good quality products with relatively low prices.
In addition to that, Kimbino provides you with leaflets containing offers and special deals from these well-known retail brands in the UK. Purchasing discounted items assists you in establishing quite a larger budget to improve your savings.
Check the table below to see how much you could save:
|Costco||Filippo Berio – Organic Extra Virgin Olive Oil||£6.39|
|One Stop||Babyleaf Salad 90g||£1.00|
|Makro||Chef’s Essentials 2 Ply Centrefeed Rolls||£4.99|
Data source: https://www.kimbino.co.uk/
The Average Household Budget in the United Kingdom
According to the ONS Family Spending report, the average UK household spends around £2,548 a month (£30,571 a year) on everyday living costs which include food, clothing, house bills, transportation to and from work, and more. This is based on an average of 2.4 members per house. Find a more detailed graph of household spendings in the United Kingdom from 2005 to 2020.
When it comes to saving, the average adult in the United Kingdom has less than £100 in savings, as conducted in research done by Yorkshire Building Society. The research also included data showing that 13% of UK adults don’t have any savings at all, while 26% of Brits admit to having less than £500 in savings.
However, due to the coronavirus pandemic, 20% of people have increased their savings. Additionally, the Yorkshire Building Society conducted a nationwide survey with the objective of encouraging an estimated 1.8 million people to start saving by 2024.