Brits spend £149 billion on essential luxuries

Brits could end up with more money to put in their accounts with the best savings interest rates by re-evaluating their priorities.

A new poll by LV= revealed that people in the UK are spending more than £149 billion on what they consider to be "lifestyle essentials".

Although 77 per cent of people admit they are making cutbacks in order to make ends meet or contribute to accounts with the best savings interest rates, the average household still spends £5,850 on top ten 'luxury' essentials in a year.

Over half of Brits consider holidays and weekend breaks to be essential, 36 per cent said the same about meals out in restaurants, while 20 per cent said they could not live without professional hairstyling.

"The nation is clearly reluctant to give up what they class as 'lifestyle essentials'. And the increasing cost of these items and services is putting people under pressure financially," said Mark Jones, LV= head of protection.

Brits have also been encouraged to think about switching their energy supplier in order to save money.

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2011-10-21 13:06:50 © Moneyextra.com