Today is 'Bills Freedom Day'
Published 20 August 2012 by Joel Stanier
20th August is this year's 'Bills Freedom Day' - when the average worker has earned enough to cover all their tax payments, housing costs and household bills, according to protection specialist Bright Grey.
Today is the day that the average UK worker has earned enough to cover all their essential bills, according to Bright Grey - giving rise to the name 'Bills Freedom Day'.
In a similar concept to 'Tax Freedom Day', which is calculated by the Adam Smith Institute to show how much of our incomes go on taxes, Bright Grey has looked at how long the average person would have to work to pay for all their taxes, housing costs and household bills.
It essentially means that on average, we spend 64% of our earnings on tax, housing costs and bills - and that's not including other essentials like food, transport and debt repayments.
Roger Edwards, managing director, Bright Grey, commented: "Given that we have to work so long to cover the basic living costs, it is worrying that we are willing to lavish 10 days of our salary on going out and entertaining compared to the four days that we allocate protecting ourselves and our families should we lose our income. We urge Britons to review their finances and really think about what they spend their money on so they can prioritise safeguarding their futures."
A spokesperson for thinkbanking commented: "These findings highlight the importance of careful budgeting. Almost two thirds of our incomes go on essential expenses, on average - sometimes more - but good financial could help keep everything manageable. At the very least, it can help to ensure that people know exactly how much they need for their essentials, and how much they can safely spend on the things they enjoy.
"Not everyone feels comfortable planning a budget, though. For them, there are bank accounts that can do it for them - such as the thinkbanking account."
The thinkbanking account uses a two-account system to help customers manage their money. At the start of each month, money for bills and other essentials is put to one side. The remaining money can be spent as you wish - making overspending and missing important payments much less likely. Find out more about thinkbanking here.
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Apply for a thinkmoney Managed Current Account today.