While it is common sense that people who use their brain are more likely to be better off than those who don’t, a study of 2,000 people by Quotemehappy.com has found that those who apply common sense are £844 better off a year.

Of course, it should come as no surprise that those who plan their spending in advance, think ahead and stick to budgets, save money across the board – from household expenditure to leisure and entertainment – compared to less savvy shoppers. 

Sarah Willingham, finance expert and founder of letssavesomemoney.com, said: “Common sense can sound dull – but it’s anything but. This research shows you can get massive payback if you apply common sense to everyday life. A few changes to your behaviour and how you plan your spending can have a huge impact on your bank balance – and your overall wellbeing.”

But while we love a bargain, the majority of those surveyed could still do more to adopt a more common sense approach.

How to unlock the value of common sense:

1) Homeowners spend as much as a third of their income on their mortgage. If you thoroughly research the right deal for you, the potential for saving thousands becomes more apparent in the long run. Be sure to know the difference between fixed-rate and variable – and know what you are signing up for.

2) Brits waste a huge amount of cash on unused gym memberships. If you go once a week or less you might be better off doing your exercise routine outside for free or even following a class on YouTube. If staying on the health-kick is especially hard for you, ditch paying out the monthly fee and get together with mates to workout outdoors.

3) How much your water bill costs is usually down to where you live and is often not based on usage. Installing a water meter means you’ll be charged for the amount you use rather than a fixed annual amount – this can mean an average saving of £100. As a general rule, if you have more rooms than people in your house – a water metre could save you a packet.

4) Over a third of us don’t combine our telephone, broadband and TV with one provider even though we can achieve average savings of £413 a year by doing so. Make sure you compare with deals from your current provider and remember that you can upgrade or downgrade even when under contract.

5) Going on holiday can be a big expense so you need to be extra savvy with your cash. One golden rule to follow is to never change your money at the airport – £21m is wasted a year through poor exchange rates – so get on to it.

6) Make sure that you think about the year ahead and plan for big events such as a friend’s wedding, birthdays and planned holiday dates. Pop these dates in a diary so you can see at a glance some of the extra outgoings that you have each month and start putting money aside so that should an emergency occur, you’re not left without a buffer.

7) When you take out car or home insurance make sure you take a look around online. As a general rule, this works out cheaper – but make sure you comb-through the policy fine print so that you know exactly what is covered.

8) Consider setting up a direct debit to go into a savings account every month. Putting just £50 aside will save £600 a year, plus any interest – which should be at least 2.5%. This can be the buffer you save up for rainy days.

9) Check that you’re on the right tariff for your energy bills. It’s worth shopping around as energy prices are always on the rise and it’s important to know that you are getting the best deal. It only takes 10 minutes and could potentially save you hundreds of pounds a year. A total no brainer.

10) Why shell out for something you no longer use? Do a regular direct debit cleanse to check that you’re not paying for any goods and services you no longer need.