Four in five people (81%) have altered their spending habits during the recession, with three quarters (75%) saying they are more frugal with their finances as a result.
Almost half (44%) say they now set themselves a budget, one in three (33%) have stopped relying on credit and a similar number (35%) are focussing on tackling their debts. One in five (20%) say they are actually saving more.
In a bid to tighten their purse strings, nearly three quarters (71%) are opting for cheaper brands or deals on groceries, while over half (54%) are choosing cheaper brands of clothes or making them by hand. Nearly half (47%) are making their own lunch instead of buying it.
Continuing with the ‘make do and mend' mentality, over a quarter (28%) are shopping at charity shops or via auction websites, with a fifth (20%) walking or cycling rather than using a car or public transport.
In spite of the 0.5% interest rate, Norwich Union found there is still a fondness for saving. Nearly half (42%) are saving money in a bank account or building society, and almost a third (28%) are putting money into an ISA, although more than a third (36%) admit they are not saving money on a regular basis.
And as a direct result of interest rates, more than one in five (22%) say they have decreased their mortgage payments, with 15% of people saying they are using the money they're saving on their mortgage to help cover living costs. Although more than half say they (56%) are receiving less interest on their savings than before the cuts.
And showing that people are erring on the side of caution in the current climate, one in three (33%) think that paying off debt is more important than saving, whereas one in eight (12%) want to build up savings quickly to protect themselves from the recession.
