£4,000 a month to feel financially secure

With the recent news that inflation has risen to 2.6%, consumers are increasingly concerned that their budgets will not stretch to meet rises in the cost of living.

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New research from uSwitch.com has revealed that British households require almost £4,000 a month just to feel financially secure, yet many fall short of this figure by a staggering £1,435.

It’s no surprise then that six in ten people don’t feel financially secure at all, as the gap between income and expenditure grows.

Two thirds of people have been subject to a pay freeze in recent years, with less than a third of employees hopeful of increases to their pay this year.

More than a third of Brits equate financial security with having the means to meet everyday expenses without resorting to credit.

Of this group only 40% feel they have achieved this. For 16%, financial security means having at least six months’ salary in the bank. However, just 35% of this group say they are in this position.

For 14% financial security means not having loans, overdrafts or debt on credit cards to pay. The increasing insecurity in the jobs market may be responsible for the fact that less than one in ten associate financial security with having a job with a regular income.

Recent figures from MGM Advantage showed that households would need to spend an extra £897.73 a year, or a collective £23.6 billion a year, to maintain standard of living they enjoyed 12 months ago.

“The surprise rise in inflation will come as a shock for many people who continue to feel the pinch,” said Aston Goodey, of MGM Advantage.

“Each UK household will somehow need to find an extra £897 a year to maintain their standard of living, or as many millions of UK families have seen, their standard of living falls dramatically.”

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Posted by: WarrenWilson Categories: Finance Tags: , , 7 Comments

7 Responses to £4,000 a month to feel financially secure

  1. avatar Helen Stone says:

    I totally agree with this article. The solution is budgeting. We can all find ways of saving £897.73 a year. Well we can, that is for a family of course.
    Well easy in fact. At present Aldis come out tops for many everyday things. The best example is fairy washing up liquid. The test shows Aldis is by far the Best. So Why are most people paying silly prices for Brand names ?
    The mind boggles, we can all save £18 a week by shopping sensible,and it will not lower our standard of living.
    How many cups of coffee do you buy a week? what at a minimum of £1.75 a time?
    Food for thought.
    Have a great Bank Holiday.

  2. avatar Peter England says:

    As an (ex) tory, I am so disappointed in this government. They have done virtually nothing to stimulate growth. A wise course, in my opinion, would have been to reintroduce tax relief on mortgage interest and cut VAT. Of course, this would mean less income from taxes and VAT to start with. However, once houses start selling again, the spin-off is enormous, creating work for builders, carpet layers, electicians, plumbers, furniture suppliers, Satellite TV installers, DIY shops,builders merchants, estate agents, solicitors, accountants, removal companies etc. The list is endless. Once the ball starts rolling the taxes and VAT come rolling in. Why can’t George and Dave see this?

    • avatar Shaun says:

      I believe the government is right to rebalance the economy, and remember which party got us in to this mess. Whilst the housing market has been kind to landlords, any renewed property boom is unlikely to fix the economy; which I think can only come from an export orientated strategy – like Germany.

  3. avatar mel says:

    £4000 a month!!! I get £7k a year! that’s for me and my carer who is also my partner, had to give up work because I am now disabled and unable to work. So how do I save £800 odd a year??? Benefits don’t leave me anything after bills are paid. Water is £65 a month for 2 of us!! Gas and electric £170 a month. Disabled people shouldn’t be treated like this, and my partner had to give up his job to be my carer gets under £60 a week whereas if I had to have carer’s come in it would cost the tax payer over £300 a week!! How is that fair. To get under £60 a week for 24/7 care!

  4. avatar David says:

    Well what do you all expect with a Tory Government? Remember all those Tory billboard ads showing everyday people like the Baker, Postman and Builder with comments like “The Tories are for me”. What a load of tosh! Everyone forgot the extremely hard times of Thatcher and Major when Joe Bloggs was paying 15% interest on mortgage payments and now we are back to the old elitist regime where the posh boys get all the money. Well you all made your bed now get rid of the fancy cars, big house and expensive dining and come back to the Tory Government reality with a THUD!

    • avatar Jerry says:

      Blaming the current Government is absurd. Massively increasing the indexed linked pensions and salaries of the Countries liability, the public sector! By stealing and robbing and shafting the wealth creators, the private sector, was the main policy of the guy who should really be remembered on the 5th November, Mr Gordon Brown. He more than any thing or anyone else is to blame for our current plight which has many more years to run.

  5. avatar Shaun says:

    Remember who got us in to this mess and who built an ‘economy’ which was based predominantly on debt and housing!