Jump to content
House Price Crash Forum
cashinmattress

One In Four Brits Struggle To Make Ends Meet

Recommended Posts

link

According to the research from moneysupermarket.com, 30% of Brits say their monthly outgoings would have to increase by under £100 before it became impossible to meet every day living costs.

The ‘affordability tipping point', where the cost of day to day living becomes so high that consumers can no longer stretch their finances to make ends meet, has already been reached by some Brits. Almost a quarter (22%) say they wouldn't be able to cope if their monthly expenditure was stretched any further, as the cost of living has now become too high for them.

The research further revealed that four in ten adults (40%) say the soaring cost of petrol, which has already seen a litre rise to above £1.33 for the first time ever, has had the biggest impact on their spending and budgeting over the last 12 months. A quarter (23%) of adults say it is the rising cost of food and two in ten (19%) say it is the rising cost of paying for utility bills such as heating which is causing the biggest strain.

In the last six months alone, UK adults say their weekly outgoings have risen by an average of £54, and they are surviving on just £247 a month after all bills and outgoings are paid for. However, with disposable income forecast to fall by a further £780 per cent this year, consumers finances look set to be stretched even further before there is any let up.

Not only are consumers battling the rising cost of living and a reduced level of disposable income, they are also contending with lack of pay rises at the same time, which means in real terms, incomes are being reduced. More than six in ten adults (61%) say they have not had any form of salary increase in the last year. The knock-on effect has been a greater need to budget to make sure all bills can be paid, with 77% of adults now saying they have to budget every month to make ends meet. This rises to 83% of adults who are parents or who have children under the age of 18 who are financially dependent on them.

The stretch in finances and limited access to disposable income has clearly had a detrimental effect on how UK adults are feeling about their future. Nearly four in ten (38%) say they are worried because they are unable to save any money and they have reached the point where they can budget no further. Over a quarter (28%) say they are stressed while one in ten adults (10%) loses sleep over the state of their finances. This jumps to 17% for parents or adults with children under the age of 18 who are financially dependent on them.

Whilst there is mounting speculation of a summer base rate hike from its current historic low of 0.5%, a third (33%) of adults say they would welcome this as they would benefit from an increase in returns from savings. However, at the same time, almost a quarter (22%) of adults are worried that any base rate hike will automatically be passed on by mortgage providers, and monthly payments will begin to rise.

Clare Francis, personal finance expert at moneysupermarket.com said: "2011 is set to be another tough year for many households, with finances continuing to be pushed to the max. People should be reviewing all of their outgoings as a priority to see where they can get better value and free up vital cash."

Hmm. Living within a lie. This IS Britain.

Most people need to cut up their credit cards, sell up and move down market, and learn how to live a parsimonious existence.

EDIT: Just to reiterate, people can afford all the things in the article if they give up non-essential items like premium satellite tele, a new mobile phone every x months, stop trying to dress like becks or jordan, etc... Although, for all those of you who bought into the 100% mortgages and Krusty/Fill mantra of perpetual HPI, well, that was wholly your fault, and even worse for you who have MEW'd/second mortgaged yourself back to 100% + of the original loan.

Edited by cashinmattress

Share this post


Link to post
Share on other sites

Far too many people are delusional about what wealth is. Capitalism is, surprise, surprise, about capital. Consumers don't understand the concept that money isn't just for going and blowing down the shops, but is for making more by investing.

The rich get richer and the poor buy another iphone and 60" TV. :rolleyes:

Edited by Wait & See

Share this post


Link to post
Share on other sites

Define "impossible". It's possible to live on food bought at £1 a day, though hardly desirable.

Its possible to live on or was to live on 31p of food a day. Ramen noodles used to be 6p a pack for 400 calories = 2000 cals a day. Deflation has increased these to 10p a pack so you need 60p a day to live on that diet. It is incredibly unpleasant to be eating this three times a day, but it keeps you going. I lived like this quite some time.

Today I live on about 90p of food per day. As I buy large sacks of potatoes and other on offer veg here and there at the market in bolton.

I find it kind of funny how sainsburys or is it Tesco advertises feed a family of 4 for £50 a week. I could do it for £28.

Share this post


Link to post
Share on other sites

Far too many people are delusional about what wealth is. Capitalism is, surprise, surprise, about capital. Consumers don't understand the concept that money isn't just for going and blowing down the shops, but is for making more by investing.

Investing in what though? Almost all financial products produce negative returns. So why bother? If you keep it in cash or in a bank account or pay it into a pension it'll get stolen by fees and inflation.

Better to enjoy it now before it is stolen by inflation ..... so who is the smart one the person who stashes their cash away or invests it in negative returns or the person who consumes it right here right now and therefore benefits from it now.

Share this post


Link to post
Share on other sites

Far too many people are delusional about what wealth is. Capitalism is, surprise, surprise, about capital. Consumers don't understand the concept that money isn't just for going and blowing down the shops, but is for making more by investing.

The rich get richer and the poor buy another iphone and 60" TV. :rolleyes:

Yes, but some have dug themselves such a deep hole (or fallen into it) that they have no hope of climbing out of they think...what the heck, lets spend some more. ;)

Share this post


Link to post
Share on other sites

Yes, but some have dug themselves such a deep hole (or fallen into it) that they have no hope of climbing out of they think...what the heck, lets spend some more. ;)

Problem is while falling they grab onto the ankles of others and drag them down too. The BoE with its magic printing press policy witholds the machete you;d use to hack their arms off and let them rot.

Share this post


Link to post
Share on other sites

Far too many people are delusional about what wealth is. Capitalism is, surprise, surprise, about capital. Consumers don't understand the concept that money isn't just for going and blowing down the shops, but is for making more by investing.

The rich get richer and the poor buy another iphone and 60" TV. :rolleyes:

What you appear to be missing is that for your investment to pay off, other people need to be buying the goods and services being produced. So for your investment in Apple to pay off, you need the very people you hold in such contempt to give you their money. I believe you are also delusional about what wealth is. All money represents is delayed consumption. Wealth lies in having goods and services which make our lives more comfortable.

Regarding the OP, I am not surprised. Given the average household income is £30k, it is unsurprising that your average family (2.4 kids, car, mortgage) is feeling squeezed and on the edge. I earn about that sum, the lady is unemployed and we are also finding it a bit of a squeeze.

Share this post


Link to post
Share on other sites

What you appear to be missing is that for your investment to pay off, other people need to be buying the goods and services being produced. So for your investment in Apple to pay off, you need the very people you hold in such contempt to give you their money. I believe you are also delusional about what wealth is. All money represents is delayed consumption. Wealth lies in having goods and services which make our lives more comfortable.

Regarding the OP, I am not surprised. Given the average household income is £30k, it is unsurprising that your average family (2.4 kids, car, mortgage) is feeling squeezed and on the edge. I earn about that sum, the lady is unemployed and we are also finding it a bit of a squeeze.

All I was doing was making the comment that a clue to what capitalism is all about is in the name. Consumerism is the line that's fed to the masses to get them back in work on Monday morning, as you're right, the system needs people to consume the tat.

Someone with £1million, even in this climate, could expect to earn 50k a year before tax from that capital alone. If they use up the capital to buy a Ferrari and a new build property, they then have to find a source of income to pay the bills and buy the food.

Middle/upper classes live off their capital, everyone else is working class as they need the handout every month from an employer to survive.

This is capitalism. The system that we've got.

Share this post


Link to post
Share on other sites

Struggling to keep the luxury candle burning both ends?

Some people probably just need to cut back on their sky package, cancel one of the mobile phones contracts they have and stop giving the kids £50 a week pocket money.

Share this post


Link to post
Share on other sites

All I was doing was making the comment that a clue to what capitalism is all about is in the name. Consumerism is the line that's fed to the masses to get them back in work on Monday morning, as you're right, the system needs people to consume the tat.

Someone with £1million, even in this climate, could expect to earn 50k a year before tax from that capital alone. If they use up the capital to buy a Ferrari and a new build property, they then have to find a source of income to pay the bills and buy the food.

Middle/upper classes live off their capital, everyone else is working class as they need the handout every month from an employer to survive.

This is capitalism. The system that we've got.

I think what motivates people into work is keeping the wolf from the door (a view point backed up by that article). What's the alternative? Socialism? I don't get your point. You appeared to be saying that people need to wake up and start investing. That won't work. If everyone piles into the stock market you'll have a massive bubble followed by epic collapse, like this:

http://www.juliangough.com/the-great-hargeisa-goat-bubble/

Share this post


Link to post
Share on other sites

Its possible to live on or was to live on 31p of food a day. Ramen noodles used to be 6p a pack for 400 calories = 2000 cals a day. Deflation has increased these to 10p a pack so you need 60p a day to live on that diet. It is incredibly unpleasant to be eating this three times a day, but it keeps you going. I lived like this quite some time.

Today I live on about 90p of food per day. As I buy large sacks of potatoes and other on offer veg here and there at the market in bolton.

I find it kind of funny how sainsburys or is it Tesco advertises feed a family of 4 for £50 a week. I could do it for £28.

I can buy a 56 lbs bag of potatoes for £4......that is, when I can't get them from the garden. Rice is pretty cheap too.

Have you ever tried a meal called Yam ma ma using Ramen noodles? Very nice.

You can indeed live very cheaply and I believe I could survive quite well on around a £1 per day.....food wise.

Share this post


Link to post
Share on other sites

I think what motivates people into work is keeping the wolf from the door (a view point backed up by that article). What's the alternative? Socialism? I don't get your point. You appeared to be saying that people need to wake up and start investing. That won't work. If everyone piles into the stock market you'll have a massive bubble followed by epic collapse, like this:

http://www.juliangough.com/the-great-hargeisa-goat-bubble/

The point that I'm trying to make is that everyone want's to be seen as being wealthy and successful. Most think by spending what little capital they have on 4x4's and iphones, this is going to show the world that they have made it, meanwhile they are scrambling around looking for two bob to buy their next meal.

Here's a question, if you won the lottery on Saturday, what would you do with the money?? Would you blow it all on rubbish and then need to return to a rubbish job at some point in the future, or would you try and compound it, then spend someone else's money for the rest of your days.

How do you think Warren Buffett got to 40billion?? An extreme example granted, but this is what compound can do.

Share this post


Link to post
Share on other sites

I can buy a 56 lbs bag of potatoes for £4......that is, when I can't get them from the garden. Rice is pretty cheap too.

Have you ever tried a meal called Yam ma ma using Ramen noodles? Very nice.

You can indeed live very cheaply and I believe I could survive quite well on around a £1 per day.....food wise.

True. Even though I think my money's tight I could easy save £100 a month. Getting the £2 tesco lunch deal instead of £4 a day at the works canteen would get me most of the way there in one fell swoop. I'm just too ******ing lazy to walk the quarter mile unless it becomes imperative. Bad noodle doodle.

Share this post


Link to post
Share on other sites

Far too many people are delusional about what wealth is. Capitalism is, surprise, surprise, about capital. Consumers don't understand the concept that money isn't just for going and blowing down the shops, but is for making more by investing.

Indeed, got to keep those city boys in Krug.

Edited by PopGun

Share this post


Link to post
Share on other sites

All I was doing was making the comment that a clue to what capitalism is all about is in the name. Consumerism is the line that's fed to the masses to get them back in work on Monday morning, as you're right, the system needs people to consume the tat.

Someone with £1million, even in this climate, could expect to earn 50k a year before tax from that capital alone. If they use up the capital to buy a Ferrari and a new build property, they then have to find a source of income to pay the bills and buy the food.

Middle/upper classes live off their capital, everyone else is working class as they need the handout every month from an employer to survive.

This is capitalism. The system that we've got.

We don't have capitalism.

Mercantile statism, yes. Chartalism, yes. Capitalism, no.

Our money is not capital - capital is something of value to people in and of itself. This is why oil and gold are capital but fiat money is not.

Share this post


Link to post
Share on other sites

We don't have capitalism.

Mercantile statism, yes. Chartalism, yes. Capitalism, no.

Our money is not capital - capital is something of value to people in and of itself. This is why oil and gold are capital but fiat money is not.

It is the case though, that you can take fiat and buy stock in a company. Make 1000% and improve your spending power. :blink:

Share this post


Link to post
Share on other sites

Sainsbury's are doing a 'Feed a family of four' for 50 pound week.

I kid you not, there is even a leaflet showing the meals which you can produce.

Can you get one and scan it in?

Share this post


Link to post
Share on other sites

The point that I'm trying to make is that everyone want's to be seen as being wealthy and successful. Most think by spending what little capital they have on 4x4's and iphones, this is going to show the world that they have made it, meanwhile they are scrambling around looking for two bob to buy their next meal.

Here's a question, if you won the lottery on Saturday, what would you do with the money?? Would you blow it all on rubbish and then need to return to a rubbish job at some point in the future, or would you try and compound it, then spend someone else's money for the rest of your days.

How do you think Warren Buffett got to 40billion?? An extreme example granted, but this is what compound can do.

Fair enough. The point is you still need demand keep the machine you describe going. Consumerism isn't the problem, false demand created by funny money is. There isn't a problem with wanting to be seen as being wealthy. The problem is doing this on tick.

I replied to be polite, but I think we basically agree.

Share this post


Link to post
Share on other sites

Define "impossible". It's possible to live on food bought at £1 a day, though hardly desirable.

+1 Exactly!

This is not research about people's actual financial situation. All comment assuming that is misplaced. It is, in practice, attitudinal research about people's current perception of their financial situation and how they imagine a change might effect them.

Interesting nonetheless, but should the imagined event happen the actual effect on their finances and their real behaviour might not be as they anticipate.

Share this post


Link to post
Share on other sites
Guest eight

Sainsbury's are doing a 'Feed a family of four' for 50 pound week.

Does it basically say "Shop at Lidl?"

eight

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.