The cost of living is so high now that the average family needs almost £25,000 just to break even.
Researchers at Skipton financial Services found that in order to cover basic everyday essentials, UK families need an eye-wateringly huge amount of extra cash.
This figure covers the price of rent or mortgage payments, utilities, insurance, food shopping, motoring and clothing the family. It also covers owning a mobile phone and landline, travelling costs to and from work as well as maintaining a property.
The staggering £25,000 family fund needed does not include any luxuries such as takeaways, restaurant meals, nights out and weekend or holidays away.
Andrew Barker, managing director of Skipton Financial Services, said, ìIt’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.î
According to the research the average family with two children living in the same house as mum and dad will need £24,600 to break even. After income tax, national insurance, the basic taxpayer will need to earn £32,702 to sustain this lifestyle.
That £24,600 will be spent on the following:
1. Mortgage repayments- £4,730 a year
2. Food shopping- £86 a week, £4,457 a year
3. Credit card/ loan bills- £3,131 a year
4. Motoring costs including fuel – £3396 a year
5. Commuting – £2,445 a year
6. Utilities- £1,282 a year
7. Council tax, £1,217
8. TV & phone bills – £844
Inflation now stands at 5%, well above the Bank of England target rate. Real wages increased by 1.4% in the last year, which is nowhere near enough to match the rising rate of inflation.
This has driven up the price of food, fuel and energy bills, taking its toll on the nation. It might be time to consider saving.
Compare savings accounts with Money Expert.