Britons unwilling to change lifestyle in face of recession

Thursday 26th March 2009

Experts warn people in Britain experiencing their first recession are less prepared to compromise their lifestyle and are leaving themselves vulnerable to debt.

Lloyds TSB has found that only a fifth of the13.5 million Britons living through their first recession as workers have become more frugal.

Lloyds is offering a free online "savvy guidance" service as well as in-person financial advice to assist with money management, but there are also plenty 'recession veterans' willing to loan out tips on how to survive the credit crunch.

Adrian Faiers of South Hampton is one such veteran. He lost his online business during the market downturn between 2000 and 2002 and also experienced the recession of the early 1990's.

"This is the second recession I've been through. I know what it’s like for a lot of people," he explained.

The ability to manage money in the current economy is a big problem, the Lloyds survey found.

Sixty-eight per cent of those who have been through another recession say they don’t overspend, compared to only 57 per cent of recession novices.

Mr Faiers advised those struggling to budget to always ask the question "Do I really need this?"

"Make a list of what you need and what you want," he said.

Mr Fariers shared ways in which he cut his costs, including buying only staples at the supermarket - cut out unnecessary luxuries and select the cheaper brands - and drinking your coffee at home, instead of in a pricier coffee shop.

"Everything that is not essential, we don’t buy," he said.

And although winter is almost at an end, Mr Fariers said turning the heat on and wearing more layers in the house is a great way to reduce monthly expenses.

For those who have lost their jobs, Mr. Faiers advises people to view the situation as an opportunity, and not dwell on the negative.

"When my company went down I tried to do one positive thing a day to better my situation,” he said, giving the example of job hunting.

"Through two recessions I’ve realised there’s good times and bad times. You have to just keep going forward."

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