These days, many Brits are choosing to prioritise things like travel over settling down, with some embracing the “DINK” (double income, no kids) lifestyle. This shift in priorities, coupled with the rising cost of living felt across the UK, has undoubtedly reshaped our financial goals.
To find out what Brits are focusing on with their hard-earned money, the loans team at Compare the Market surveyed nearly 5,000 people across the UK about their biggest financial priorities for the next five years. The study also reveals if these have changed at all due to the current economic climate.
You can find the full research here: https://www.comparethemarket.com/loans/content/biggest-financial-priorities/
Brits’ number one financial priority is building up a rainy day fund (27.7%)
When asking Brits what their financial goals for the next five years are, building up a ‘rainy day fund’ comes out on top, with 27.7% prioritising having a safety net in place. This goal is particularly significant among those aged 78 and above, where 30% have made it a top concern, compared to only 15% of Generation Z considering this a priority.
The second most important financial goal for Brits is saving up to go travelling, which 17.9% of people are focusing on. That’s closely followed by paying off debt completely, with 17.2% of Brits aiming to be debt-free.
| Rank | Financial choices that are a priority over the next five years | Percentage |
| 1 | Building up a rainy day fund | 27.7% |
| 2 | Saving up to go travelling | 17.9% |
| 3 | Paying off my debt completely | 17.2% |
| 4 | Saving to retire (early) | 15.4% |
| 5 | Reducing debt | 15.1% |
| 5 | Buying a car | 15.1% |
| 6 | Buying a property (house, flat etc.) | 14.2% |
| 7 | Investing | 13.7% |
| 8 | Starting my own business | 7.6% |
| 9 | Moving out | 6.6% |
| 10 | Starting a family | 6.2% |
*Note: Table showing the top 10 results, ranked by highest percentage
Millennials are prioritising financial gains over spending on things like travel and luxury items
Millennials are prioritising financial security, with just over one in five (22%) looking to buy a property first, followed by building an emergency fund (21%), investing (21%), or paying off debt (19%) before spending on travel, new cars, or luxury items.
Gen Z also prioritises homeownership, with a quarter saying buying property is their top financial goal for the next five years, followed by achieving independence through moving out (19%).
13% of people have cut back on buying luxury items due to cost of living concerns, while one in 10 have stopped saving for travel
While for some people, building a rainy day fund or saving to go travelling is a priority over the next five years, a number of Brits have had to change their focus due to rising living costs. One in 10 people (13%) have cut back on buying luxury items, and 11% said they can no longer prioritise building a rainy day fund, even though this is a top financial goal for many. Although having an emergency fund is important, high living costs and other essential expenses, like rent or mortgage payments, make it currently unattainable for some.
Additionally, one in 10 Brits (10%) have stopped saving for travelling, with this number rising to 15% among millennials and 16% among Gen Z. This shift reflects the broader impact of cost of living pressures on financial planning.
| Rank | Financial choices that people have stopped making due to the cost of living rise | Percentage |
| 1 | Buying a luxury item (such as a luxury handbag, designer watch, etc) | 13% |
| 2 | Building up a rainy day fund | 11% |
| 3 | Saving up to go travelling | 10% |
| 4 | Investing | 9% |
| 5 | Buying a car | 8% |
| 6 | Saving to retire (early) | 8% |
| 7 | Moving out | 7% |
| 8 | Saving for a wedding | 6% |
| 9 | Buying a property (house, flat etc) | 6% |
| 10 | Buying a holiday home | 6% |
*Note: Table showing the top 10 results, ranked by highest percentage
