We may be living in uncertain times, but new research from VoucherCodes.co.uk reveals that the typical Brit still has a healthy level of disposable income, with the average amount of money left after all the essentials have been paid for standing at £426.
The results, from a survey of 1,692 people, found that 15.13% of the average budget is allocated to non-essential spending, down only slightly from 15.47% in 2015. This is in line with people's sense of financial insecurity after the Brexit vote, with 33% feeling less secure as a result, and only 5% feeling more financially secure. Of the 33%, almost half (47%) are worried about inflation, 26% about falling house prices and 35% about job security. The younger generation was shown to be the most concerned about the financial consequences, in line with referendum voting statistics.
However, despite the younger age group having more financial concerns, this is also the age group that has the highest level of disposable income, with data from surveyed millenials estimating an average of £478.
Conversely, those aged between 45 and 54 have the least to spend on themselves of any age group, with an estimated average of £381. This also means that younger people are better able to save, with 18 to 24 year olds squirreling away 12% of their budget, compared with 6% saved by 45-54 year olds. This goes against the notions that young people have less to spend than previous generations, and that they are not interested in saving.
Other discrepancies appear when looking at gender, with the gap between male and female disposable income widening by 48% compared with 2015. Women now have an average of £369 left compared to men's £487, both up from averages of £332 and £412 last year, respectively. This may be partly explained by the fact that women set aside 3% more of their monthly income for bills, utilities and childcare (23% vs. 20%).
Commenting on the figures, Claire Davenport, managing director at VoucherCodes.co.uk said: "In a climate of economic uncertainty, it is reassuring to see that Brits still have a healthy proportion of their income to allocate to spending on non-essentials, with the younger generation leading the trend and also managing to put away more of their monthly budget towards savings."
Claire went on to recommend setting a monthly budget, and making use of discounts and vouchers whenever possible, as a way of making sure you get the most out of your day-to-day spending. This can give any generation an increased sense of financial security, and hopefully help them feel a little less concerned about what a post-Brexit future may hold.
Are you feeling flush with disposable cash? Consider putting it into a top savings account to ensure that you continue to have enough money in the future.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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