The current financial situation over most households in the UK
As in other Western countries, as a whole, the British people are quite prosperous but they remain in the “middle”, working every day to pay monthly bills and not dreaming that one day they can just get out of this tedious financial trap. Increasing inflation followed by wage failures to follow has awakened so many people in this country that they can’t rely on their monthly salary anymore. Everything has changed and unfortunately … in a worse direction.
They may have wasted their money unwittingly
To realize, every household has different expenses but of course we have an estimate of the average household expenditure in the UK. In our calculations, the average household expenditure in the UK is £ 2,000 per month but … our focus is not on its value but how most British people use the £ 2,000. Our calculations are in line with an infographic from Loanable which says that most Britons spend up to £ 2,000 per month on general living.
The most wasteful sectors
There are some wasteful sectors where people spend a lot of their money. Transportation is one of them. This is a sector where the average household spends up to £ 100.00 every week. Housing follows in second place where the sector spends up to £ 80.00 per week, represented by housing, electricity and fuel. Recreation, though included in “secondary needs”, can cost up to £ 70.00, ranks third on our list. This certainly does not include food and drinks in cafes and restaurants as an important element of how people (especially Londoners) spend their time on weekends. For some people, hotel costs are a monthly mandatory fee and for most elderly households, routine medical expenses take up quite a lot of their income. With the various expenditures above, the average household expenditure is around £ 700.00 to £ 800.00 in total.
Different regions mean different expenses
Above we discuss the average expenditure of households in the UK, but each regional difference means the difference in expenditure even though in many cases, the difference is not significant. Expenditures in the northern regions tend to be cheaper and increasingly south, tend to be higher.
How people spend their money is a subjective matter
How people spend money is a subjective matter and therefore allows some adjustments to come. These adjustments lead to savings that in the future (if done continuously) can result in a valuable investment. Actually, most people understand how they can save but consistency is their biggest problem. It will always be a problem until everything feels too late and they realize that they have been trapped in an endless bill.
Financial education is very important
Financial education is probably one of the most important educations in human life. This allows everyone to manage how they use their income and if possible improve it. Any education or financial advice must certainly be adapted to the area where “students are” and in the case of England, many food stamps can save significant monthly expenses. This does not include free bank services, using a smart meter to control gas consumption and so on.