Recent research from thinkmoney shows that many people in the UK have very little left to spend each month after they have paid their essential bills.
It’s little wonder that households are struggling to make ends meet. Although the economy seems to be improving, the UK’s finances have been in the doldrums for the past five years.
Our research found that one in 11 people have £10 or less left over every month after paying bills such as electricity, gas and rent/mortgage. A quarter of us have £50 or less left over after settling the bills.
While for some people this means tightening their belts and cutting out some of life’s little luxuries, for others it is extremely stressful and unsettling - and a sign of real financial problems. When your 'disposable income' is low, even a small change in your situation can be very serious.
What can you do?
If you are worried about the size of your pot of spending money, the important thing is not to panic. There are things you can do to reduce your outgoings and lower your stress levels.
You could consider making a list of all your outgoings so you have a better idea of how much you are spending each month. Perhaps there are a few ways you could economise? For example, have you thought about switching to a cheaper supermarket? Or what about buying a supermarket's own-brand goods? These can be much cheaper than 'branded' products.
We can help you budget
However, sometimes it’s not easy to budget or to find time to go through your bills and receipts. Help is at hand. The thinkmoney Personal Account could put you back in control of your finances. This is how it works:
- All of your incomes, from your wages to your pension or benefits, are paid directly into one half of the account.
- We work out how much money you need to cover all the bills you've told us about, and make sure they are paid on time. So you won’t have to worry about things like your mortgage or Council Tax being paid late.
- The left-over money goes into the other half of the account. Then it’s up to you what you spend the cash on. The great thing is that you’ll always know where you stand - you'll know what you can spend without accidentally using the money you really should be saving for life's essentials.