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Average British Family Had Just £146 Per Month Of Disposable Income

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Sounds about right, and it shows just how much we rely on buying stuff on the never never. Also it highlights just how little contingency money most families have. A major household repair or other out of pocket expense can leave many families in financial trouble for months.

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I remember hearing about this on a piece about the new supermarket price war and I was quite surprised by the figure since it seems quite low. It wasn't really clear what was factored as bills though since well 35 or so quid a week for a family doesn't seem like much - a trip to the cinema would almost cost that after factoring in all the extras.

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More than 800,000 borrowers, who have so far been insulated from the one percentage point rise in interest rates since August, will see their annual mortgage bills leap by an average of £1,500 when they remortgage, according to research by Deutsche Bank

£1500/12 = £125

£146-£125 = £21

All it takes is one more rate rise and hundreds of thousands of homeowners go negative!

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Another year or two of high inflation (relative to earnings) will wipe that out.

Take £27K as being roughly the median family income, a couple of 5%'ers will do it.

http://en.wikipedia.org/wiki/Median_household_income

£24,700 GBP 2004/2005

It's funny how many people grossly overestimate average/median incomes. I think city parasites have left a lot of people with the impressions that 'everyone worth a damn earns at least 100k a year'. The fact is they don't, but the reality is that given the cost of living in this country they should.

Edited by BoomBoom

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This is just astonishing. I can't be all cyncial and knowing about this sort of figure. It is unbelieveably low.

It is death to HPI. Had I not been already actively recession-proofing my investments I would be running now.

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Guest Charlie The Tramp

There is a sudden boom in customers 30 minutes before closing at my local tesco.

What are they buying all the reduced stuff.

Rolls 3p for a dozen pre-packed.

Bread 10p

Pizzas 10p

Bacon 25p

Strawberries 10p

Cooked chicken from the hot food counter free

Sandwiches 10p ( probably the kids school lunch the following day )

Dented tinned food 10p

Also I`ve noticed the 6p tins of value beans and other vegetables appear to have been discontinued.

By the time I get there now it has all gone. :(

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Price war? That'll cut inflation then, I imagine. Though it'll probably mean the Supermarkets don't have the same scale of profits to recycle into credit for their customers (mentioning no Bank of Tesco there).

Not sure I believe the total figure either. I'm not exactly a millionaire, and my income after tax, rent, electricity, season ticket and phone is just under nine hundred quid (though granted it would be just over six hundred if I was in the pension scheme). Maybe they're including food as non-disposable?

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There is a sudden boom in customers 30 minutes before closing at my local tesco.

What are they buying all the reduced stuff.

Rolls 3p for a dozen pre-packed.

Bread 10p

Pizzas 10p

Bacon 25p

Strawberries 10p

Cooked chicken from the hot food counter free

Sandwiches 10p ( probably the kids school lunch the following day )

Dented tinned food 10p

Also I`ve noticed the 6p tins of value beans and other vegetables appear to have been discontinued.

By the time I get there now it has all gone. :(

Charlie dont advertise it, i'm one of those on occasion, i'll have to fight for reduction in prices or hang around an extra 30 mins to get 'em.

Seriously though some of the bargains are amazing, tesco finest dishes down from £4 to 50p, in the freezer they go and save for a rainy day.

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Charlie dont advertise it, i'm one of those on occasion, i'll have to fight for reduction in prices or hang around an extra 30 mins to get 'em.

Seriously though some of the bargains are amazing, tesco finest dishes down from £4 to 50p, in the freezer they go and save for a rainy day.

On Thursday I was present at a closing down sale in a supermarket going from being a Somerfield to something else (dunno).

Brutal I tell you, the guy with the price gun was pursued by a pack of pensioners who showed "ruck and maul" skills the England rugby team could learn from. As an able-bodied 6 foot plus young-ish chap I was beginning to find the atmosphere a little uncomfortable.

Still, grabbed 4 kilograms of tea(!), 70-odd disposable razor blades, 10 cans of deoderant, and 30ish light bulbs and all the canned goods I could lift at 1/3rd of the usual price (tea was 1/4 cos it was 320 for the price of 160 before the discounting) so I'm not grumbling.

Sad to say I found this a lot more exciting than the time I bought a new car.

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Guest Charlie The Tramp
On Thursday I was present at a closing down sale in a supermarket going from being a Somerfield to something else (dunno).

Asda ? they appear to be taking over a few Somerfield Supermarkets.

Step into the pensioners domain and you could be risking life and limb.

My lad is a gun man with a top supermarket and after Easter he was told to mark up Easter Eggs over a fiver to 5p. he was lucky to escape wih his life as he nearly got crushed before he had completed his dangerous task. :D

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The amount somebody earns is not necessariy proportional to their disposable income.

I person on 40k a year may have a DI of £400 a moth. While another may earn 12k a year and have £800 a month.

Its all relative to your circumstances and amount of outgoings you take on. I know which I would rather be.

Sorry a couple of Stellas bought with my DI makes me a bad speller. Who gives a f**k anyway.

Edited by iluminati

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On the subject of disposable income how about this gem from the ONS based on 2002/3 data and calculating disposable income before housing costs. You'll note the median is £323pw subtract £250ish for housing costs and the asda figure which is almost certainly slanted away from high/super high earners starts to look very realistic.

http://www.statistics.gov.uk/downloads/the...2004/Income.pdf

fig4_1.png

post-8446-1182123375_thumb.png

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Price war? That'll cut inflation then, I imagine. Though it'll probably mean the Supermarkets don't have the same scale of profits to recycle into credit for their customers (mentioning no Bank of Tesco there).

Tesco

I was in there yesterday, after I found that the nearby Co-Op had no yoghurts left. When I got to the till, I discovered to my embaresment that I had no cash, so I asked the lady on the till if it was ok to pay the 71p for the yoghurts on my Debit Card. she replied, and I quote:

'It's Tesco's dear, we'll take the shirt off your back if you've nothing else'

It was a bit chilly so I paid on the card........!

Edited by Sonic the Hedge Fund

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'It's Tesco's dear, we'll take the shirt off your back if you've nothing else'

It was a bit chilly so I paid on the card........!

Love it!

They'd probably take your children too

:)

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It probably cost them more than 71p to process the transaction!

I've noticed how shops and other retail outlets are increasingly imposing 'Minimum spend £5 or 50p transaction cost' for debit card payments (or similarly proportioned figures), and imposing fees for credit card payments, full stop. Whereas previously shops would absorb the cost of processing card payments, they now seem to be trying to pass them on. I recently paid a £17 credit card transaction fee on an air ticket, and did so because I wanted the consumer credit 'over £100' refund guarantee in case the airline went bust (Northwest was in Chapter 11 until very recently) or they were unable to provide the service for some other reason. But clearly enough people are now using what is effectively an insurance policy for retailers and/or card providers to now be making a significant charge for it.

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I find this hard to believe - a lot will depend on what is included in "bills" - does this include the beer / tabs / kebab bills???

If it is true then this country is well and truly fooked - even more so than I already thought.

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