Nearly half of Brits have either stopped completely or reduced their saving in the past year, as the economic turmoil alters our priorities.
That is the finding from research by MoneySupermarket, which has found that 47% of British people have changed their savings habits in the last year.
It was found that as many as 12 million people have been forced to stop or reduce their saving just to pay for day-to-day living expenses.
Other reasons for not saving include using the money to pay for rising household bills. 42% of those questioned said this was the main reason they cannot save any longer.
It was found that more than a third of Brits had been forced to stop saving because of a reduced income, which meant they could no longer afford to put money away.
“It comes as no surprise that many people have reduced and even stopped saving completely at a time when the cost of living is high against a backdrop of ongoing low interest rates,” said Kevin Mountford, Head of Banking at MoneySupermarket.
“It is easy to accept rising costs as a fait accompli, but there are many ways people can lower the impact. The first step should always be to review outgoings, ensure you are on the best deal for your needs and start looking at ways you can be more savvy with your spending.”
The research also revealed that many of us are cutting back on certain luxuries in order to save a bit of extra money.
The most common sacrifice was eating out, with 45% of people choosing to eat at home more often. This was closely followed by clothes shopping and going on holiday.
“For the large number of people with no savings at all, it is important to try and start to save, no matter how small the amount,” added Mr Mountford.
“Even putting away just a few pounds a week can add up – as every penny counts. Over time this will build up and help to pay for unexpected bills.”
You can compare savings accounts with Propertywide.