The wallets of each household in the UK are holding an extra £600 a year after tax, on average, says the Office of National Statistics (ONS). But is that enough?
Its latest figures – which are for the financial year 2015/16 - show the disposable income for households, and they’re on the up. The average (median) household takes home £26,374 a year after taxes, or £2,192 a month.
How much do you have left after essentials?
These figures might seem high, but they don’t include essential spending such as rent, bills and food.
Once these are taken out, it might not leave much for additional spending on the things you want but don’t necessarily need – often called discretionary spending. So if you want to try and find more spare cash, your first step should be to set up a budget. You’ll be able to see exactly where all your money is going, and hopefully find ways to cut back and give you more cash in your pocket.
>> Struggling to make ends meet? Try our Budget planner tool to see where you could cut back
Of course, for some of us the disposable income after tax might not even cover the basics. If you find you can’t pay your bills, or are forced to pay for your supermarket shop on a credit card, it’s a sign you might be heading towards problem debts. Don’t ignore it. It’s easy to find free and independent advice which could help you start to get back in control of your finances