UK inflation rose again in July to the highest annual rate since the beginning of 2024.
UK inflation rose again in July to the highest annual rate since the beginning of 2024. The Office for National Statistics (ONS) said Consumer Price Index (CPI) inflation increased to 3.8 per cent last month, from 3.6 per cent in June.
Put simply, the current inflation rate means something that cost £100 this time last year, now costs £103.80. For many people it’s the little things and everyday purchases that quietly chip away at their household budgets – and now is the perfect time to take stock and make some changes to help boost your bank balance.
Everyday purchases and forgotten subscriptions may seem harmless, but over time, these sneaky habits can silently drain your finances without you even noticing.
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Will Fenton, CEO of Sterling Savvy, explained: “Managing your money doesn’t have to be about strict budgets or giving up the things you enjoy. Often, it’s the small, unnoticed behaviours that make the biggest difference. Recognising these can empower anyone to take control of their finances and build better habits.”
According to Fenton, three everyday money habits are quietly costing the average UK household more than you might realise.
Daily Small Purchases That Add Up
That £3 coffee on the way to work often seems like a harmless treat, but if you’re buying one five days a week, that’s roughly £780 a year – enough to cover several months of Netflix or contribute toward a family day out.
Add meal deals, snacks, and the odd takeaway coffee into the mix and before long, those little purchases rack up to a shocking amount.
Fenton added: “It’s not about cutting out your daily treats altogether, but about being mindful and setting small spending limits. Try batching your treats. Maybe one takeaway coffee a week instead of five, or make your own coffee at home some days. These tweaks can save you hundreds without feeling like a sacrifice.”
Not Shopping Around for Renewals
Many people simply stick with the same providers for insurance, energy, or broadband without checking if they’re getting the best deal. This often results in overpaying by hundreds of pounds each year.
Fentson explained: ““For example, an energy tariff that costs just £10 more per month than the best available deal adds up to £120 a year wasted. The convenience here is that switching providers has become easier than ever. Setting a calendar reminder to review your bills every six months can make a huge difference.”
Fenton recommends using comparison websites and seeking advice from regulated experts to ensure you’re not leaving money on the table.
Ignoring Small Direct Debits
It’s very easy to overlook those small, regular payments that quietly slip out of your bank account each month.
Many people are still paying for gym memberships they no longer use, magazine subscriptions they forgot they signed up for, or streaming and app services they barely touch. Individually, these may seem insignificant, but together, they can become a substantial drain on your finances.
Fenton explained: “A £5 monthly subscription might seem trivial, but over the course of a year, that adds up to £60. Now imagine having three or four such subscriptions you don’t even remember signing up for – that’s £180 to £240 wasted annually without you noticing.”
Fenton recommends taking the time to review your bank statements every few months or using budgeting apps that track recurring payments.
He continued: “This habit helps you spot those sneaky charges. Once you identify unused or forgotten subscriptions, cancelling them can free up money that can be redirected to savings or essential expenses.”
Fenton also encourages people not to feel guilty but to celebrate the small wins. He said: “Everyone slips up with money sometimes, and that’s okay. The key is spotting these habits and making manageable adjustments. Financial health is a journey, not a race.”
By being aware of these everyday drains and taking practical steps, households can save hundreds each year, easing financial pressure without the need for drastic lifestyle changes.
For more practical advice on money management and personal finance, visit Sterling Savvy.
