Managing money has been a tough task for many people for a range of reasons in recent years. Unemployment or saving more have all left less cash around to go out and spend.
The task has been made harder still for those who have had their pay frozen, which a survey by uSwitch.com has found amounts to 65 per cent of the population, with 15 per cent having it frozen for three years.
Furthermore, the poll found that of those who will get a pay rise, the average will only be 2.1 per cent, well below inflation. Overall, 80 per cent will see a pay rise that falls below the increase in the cost of living.
Inevitably, this means a squeeze on household budgets and the site found 54 per cent believe they will only be able to handle this by making major cuts in their spending. A further two out of ten will look to take on a second job or increase their hours to earn more, but 15 per cent have no idea how they will cope.
And while some consumers may be pleased to see energy bills falling as EDF became the first of the big six to cut its tariff this year after wholesale gas prices dipped, commuters are currently absorbing new year hikes in rail fares.
Personal finance expert at the site Michael Ossei said: "While the cost of living continues to rise, pay isn't keeping up, which means that workers are seeing their disposable income drain away."
He added: "In the face of another tough year, those who plan to severely rein in their spending have hit the nail on the head - this year more than ever people will have to watch their spending and cut back where they can."
Mr Ossei suggested people compare prices to find better deals, but another way consumers can get their spending under more control is to use a budget planner.
This can enable consumers to establish exactly what they are spending their money on – and where they can make savings by trimming expenditure on the things they do not need, while managing to pay for essentials.
A study by Santander this week indicated consumers used their credit cards less last year, which may have been one sign that many are getting the message about the need to be more frugal.
