Irish Wedding News
09/05/2012
The mind-boggling figure consists of mortgage or rent, utilities, insurance, food shopping and motoring, plus the cost of dressing the family, owning a mobile phone and landline, travelling to and from work and maintaining a property. However the sum excludes any luxuries whatsoever - such as takeaways, restaurant meals, night outs, weekends away or holidays.
Andrew Barker, managing director of Skipton Financial Services, said: "It's frightening how everything adds up. The cost of living is astronomical and now more than ever people have to be on the ball with their expenditure and to keep on top of things, particularly at a time where inflation is riding well above target at 5 per cent.
"Inflation continues to hit families hard with the rising prices of food, petrol and energy bills. It is not surprising that mortgage interest is the number one spend, even though interest rates are at rock bottom levels. However, it is incredible to see that the cost of feeding the family is almost as expensive at almost £4,500 a year."
The study, which analysed the spending habits of parents with at least two children living under the same roof, found the following to be the biggest costs to mum and dad:
Mortgage repayments which, on average, total £4,730 a year.
The weekly food shop total isn't far behind - averaging £86 a week or £4,457 a year.
Paying off credit card bills and loans make up another £3,131 every year.
Filling up the car with petrol comes to £47 a week, or £2,452 a year. Other car costs include an average £944 spent on car insurance, taxing the vehicle and roadside assistance.
Commuting to and from work adds another £2,445 strain on a family's finances.
Utility bills emerged as £1,282 each year.
Another £1,217 goes on council tax.
Sky or cable TV subscriptions come to £476, with even mobile phone bills averaging at £368.
The survey also found that 40 per cent tend to spend most of their cash on things they want, rather than save it for the future, with almost one in three admitting to not having a savings account. Of those that do save, they put away an average £86 a month. Yet one in four said this is less than this time 12 months ago - with them sticking away £55 less each month than in 2010.
Andrew Barker added: "Don't forget that our research showed households need to actually bring home £24,600 to break even. To bring home this figure, once income tax and national insurance has been taken into account, a basic rate taxpayer would actually have to earn £32,702. With many sectors currently suffering a pay freeze, it is difficult to increase your monthly incomings so it is even more important to be ahead of the game with your expenditure.
"Get your bank statements and check all direct debits and standing orders. It is vital that you are aware how much is going out of your account and you may even spot things like magazine subscriptions or gym memberships that are no longer needed or no longer essential spends. Make a monthly budget plan and put everything on there. People often forget to add non-regular items like holidays or Christmas spending so, for annual events, divide by 12. If you buy lunch or a coffee every day at work, multiply the cost by 20 to get the monthly cost.
"With a pressure on families to manage their budgets, it is even more important to maximise the growth of any money you have saved or invested. You may have invested money years ago and have no idea how it is performing. If so, speak to your financial adviser. It may be that the money was in the right place when it was invested but that it is now not delivering the growth you need to support your family."
(GK)
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Families Need Almost £25,000 To Break Even
The average British family now needs to bring home a staggering £24,600 a year - just to break even, says research commissioned by Skipton Financial Services.The mind-boggling figure consists of mortgage or rent, utilities, insurance, food shopping and motoring, plus the cost of dressing the family, owning a mobile phone and landline, travelling to and from work and maintaining a property. However the sum excludes any luxuries whatsoever - such as takeaways, restaurant meals, night outs, weekends away or holidays.
Andrew Barker, managing director of Skipton Financial Services, said: "It's frightening how everything adds up. The cost of living is astronomical and now more than ever people have to be on the ball with their expenditure and to keep on top of things, particularly at a time where inflation is riding well above target at 5 per cent.
"Inflation continues to hit families hard with the rising prices of food, petrol and energy bills. It is not surprising that mortgage interest is the number one spend, even though interest rates are at rock bottom levels. However, it is incredible to see that the cost of feeding the family is almost as expensive at almost £4,500 a year."
The study, which analysed the spending habits of parents with at least two children living under the same roof, found the following to be the biggest costs to mum and dad:
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Mortgage repayments which, on average, total £4,730 a year.
The weekly food shop total isn't far behind - averaging £86 a week or £4,457 a year.
Paying off credit card bills and loans make up another £3,131 every year.
Filling up the car with petrol comes to £47 a week, or £2,452 a year. Other car costs include an average £944 spent on car insurance, taxing the vehicle and roadside assistance.
Commuting to and from work adds another £2,445 strain on a family's finances.
Utility bills emerged as £1,282 each year.
Another £1,217 goes on council tax.
Sky or cable TV subscriptions come to £476, with even mobile phone bills averaging at £368.
The survey also found that 40 per cent tend to spend most of their cash on things they want, rather than save it for the future, with almost one in three admitting to not having a savings account. Of those that do save, they put away an average £86 a month. Yet one in four said this is less than this time 12 months ago - with them sticking away £55 less each month than in 2010.
Andrew Barker added: "Don't forget that our research showed households need to actually bring home £24,600 to break even. To bring home this figure, once income tax and national insurance has been taken into account, a basic rate taxpayer would actually have to earn £32,702. With many sectors currently suffering a pay freeze, it is difficult to increase your monthly incomings so it is even more important to be ahead of the game with your expenditure.
"Get your bank statements and check all direct debits and standing orders. It is vital that you are aware how much is going out of your account and you may even spot things like magazine subscriptions or gym memberships that are no longer needed or no longer essential spends. Make a monthly budget plan and put everything on there. People often forget to add non-regular items like holidays or Christmas spending so, for annual events, divide by 12. If you buy lunch or a coffee every day at work, multiply the cost by 20 to get the monthly cost.
"With a pressure on families to manage their budgets, it is even more important to maximise the growth of any money you have saved or invested. You may have invested money years ago and have no idea how it is performing. If so, speak to your financial adviser. It may be that the money was in the right place when it was invested but that it is now not delivering the growth you need to support your family."
(GK)
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20/03/2020
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Lana Del Ray Splits From Boyfriend
Angelica Ross Learns Of Boyfriend's Secret Life
Ashley Graham's Breastfeeding Struggle
Susanna Reid's Mother's Day Plans
Lin-Manuel Miranda Homeschooling Kids
Kristen Bell Speaks Of Pride For Daughters
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