WE spend our hard-earned money on a variety of necessities and indulgences every year, ranging from groceries and energy bills to vacations and marking those important, special occasions.

Therefore, it's intriguing to see how much people value making what could be considered discretionary purchases, especially in hard economic times when money can be scarce.

New data from banking giant Barclays shows that UK consumers have reduced their spending on home upgrades and new clothing due to rising living expenses.

However, individuals are still spending a lot of money on events like holidays, get-togethers, and live performances.

What does this therefore indicate about us and our spending patterns in these lean economic times?

You would expect that in this environment of high inflation and slow economic growth, individuals would prioritise long-term and daily expenses, such as house improvements and energy bills.

However, it seems that people value memorable, social, and shared experiences highly and that we are prepared to shell out a substantial amount of money to create priceless memories.

For instance, according to the data from Barclays, prominent events like Beyonce's Renaissance tour and the Eurovision Song Contest, in Liverpool, drove a 7.5% increase in entertainment spending last year.

Meanwhile, expenditure at cinemas increased by 6.3%, in part because of popular films like Barbie and Oppenheimer.

Similarly, 2023 was a record-breaking year for the travel industry, with airline revenue rising by over 30% and travel agency spending rising by 10.4%.

This trend will be influenced by a variety of factors, not the least of which is the pandemic's legacy.

After the Covid lockdowns, a lot of individuals will still feel as though they're making up for lost time, and the experience might have given them a renewed respect and desire for activities that take them outside of their own home.

The current state of political and economic unrest and instability may also be having a significant psychological effect.

You may have the attitude that you only have one life to live and wish to make the most of the moment if, for example, you're having financial difficulties or feel that particular lifestyle aspirations are too far off at the moment.

But sound money management is essential when it comes to securing your long-term financial security.

However, life is clearly meant to be lived, filled with cherished moments spent with loved ones and fulfilling pursuits of happiness.

By finding the ideal balance, you can be sure that you're living within your means and not jeopardising your overall financial condition.

This will allow you to have both.

By considering your priorities, motivations, and life goals, you can ensure that your overall financial strategy takes these things into account.

To enable you to live the life you choose, both now and in the future, our experienced financial planners may collaborate with you to create a plan that takes into account your objectives, circumstances and ambitions.

Please don’t ever hesitate to reach out to the Future Life Wealth Management team HERE or by ringing 01246 435996.

We will always work with you to achieve your hopes and aspirations, if at all possible.