Brits need almost £1,500 a month to make sure they are financially secure, according to a new study.
The average household is £1,435 short of being financially stable. The typical household income stands at £2,504 and those polled claim to need £3,939 per month to feel financially secure.
Research from price comparison website uSwitch discovered that 61% of people don’t feel financially secure at all. A growing number of Brits are struggling to cope in this current financial climate. Many are recovering from the sting of rising energy bills, high unemployment topped with low wages and the rocketing cost of living. Rising food and petrol costs are also taking their toll on household incomes.
Wages have increased in the private sector faster than UK inflation over the last three months. This is the first time that wages have risen at a faster rate for the first time in three years. Despite this, the working population are not optimistic about their wages increasing further.
This might not come as a surprise to many as almost two-thirds of people have had a pay freeze in the last few years. As a result, only 30% of the UK workforce expects a pay rise this year.
When looking to define financial security, 35% of those polled said that it was having enough money to cover basic day-to-day living costs without relying on additional credit or loans. Yet almost half (40%) of Brits are, as defined by these terms, ‘financially secure’.
The second most popular definition is having a minimum of six months salary saved in the bank, yet only 35% of people have this luxury.
Just over one in 10 say that being financially secure means having no debt on credit cards, loans or overdraft facilities.
UK households could make the most of this crippling economy by earning whislt they spend. The Asda Money Cashback Credit Card offers 1% unlimited cashback on shopping in Asda stores and online, as well as 1% unlimited cashback from any Asda petrol station.Back to top