Disposable income of £782 per month??

[Speedystonez]

Hi

I have just been reading an article online which suggested that the average person in the UK has £782 left and disposable income after paying all of their essential living costs. Surely that can’t be right?

dunno, we have more than that

Is that before or after food bills?

Do you think that is too high, or too low?

Add a decimal point after the 7 and it’s more accurate for me 😆

Why not? Can you explain...

Because a lot of people aren't that lucky/privileged for a lot reasons, obviously?

I agree, op, I don't think that can be right either. I certainly dont

Link? What are they considering essential living costs?

Mean or median? If it's mean, you have to remember that there will be mega wealthy outliers skewing the data.

😂

Mine is much higher than that now, was much lower when I was younger. I guess that's how averages work.

It seems a hell of a lot to me. Almpsu 1.6 grand for a couple??

But it's an average? Surely you accept that there are also very many people who are more fortunate who have a lot more disposable income and bring the average up?

Remember OP that a third of the population own their homes outright and so have no housing costs…

This 🤣

Too high or too low?

Depends what they're including as costs. Some people earn ££££ and have no mortgage

Each?

This is meaningless unless you tell us what they classify as living costs.

www.finder.com/uk/banking/disposable-income-around-the-uk#:~:text=What%20is%20the%20average%20disposable,the%20average%20was%20£866.

Google - likely source

As many say averages tell you not so much

Left over 780
Rent 800
Essential food and bills 700
Basically assuming a hours share if you are single

Makes a total of 2.2k pre tax

Take home on average salary (35k is median I think ) just over 2.3k a month

It adds up - seems plausible

Remember that most people are not paying childcare costs - even if you are it's only for a fraction of your working life

@kelsaycobbles it also doesn't really define like costs which isn't overly helpful!

I was just saying wher it came from

It does say what sources it uses - eg ONS for household costs ( from memory cba to look back )

But what are "taxes, bills and necessary loving costs". Does that include savings, pension contributions, kids clubs and activities, charity donations, etc etc.
We probably have the £782 each but after savings (which I'd consider to be essential), the endless expense of children, there's not a huge amount left.

Not that we have anything like that left over after essentials but I can easily see how it happens

It depends as well what you consider essentials and disposable.

I have to buy a lot of 'essentials' out of our disposable -things like replacing a charger, bits of kit for school trips, new lunchbox all eat into mine, and add up quickly.

I would suspect ( go and read the full methodology) that kids clubs are not classed as essential, nor would savings or charity donations be

Essentials likely to include Food, gas and electric water and internet ( not subscription tv) work transport , council tax, pensions and tax , student loan repayments

Which is the rough basis of my 700a month typical essentials cost

On average

On average people who can't understand averages will struggle more than those who can