Living beyond our means, or just poverty?

[Anna B 1,401]

An Office of National Statistics report showed that the top 10% of earners had a disposable income - after taxes and housing costs - of £78,000 last year. These families spent less than £39,000 of that sum.

 

By contrast,the poorest 10% of households had a disposable income of just £5,000 but spent £13,000 funded by borrowing and debt.

 

Saving has fallen to the lowest level since records began in 1963.

 

Peter Andrew of charity step change said 'The reality is too many households simply cannot make ends meet no matter how hard they try.

Not having enough money to make ends meet is not the same as living beyond your means, which implies you have a choice, when too many people do not.'

 

A typical household's outgoings were £900 higher than their incomings last year,

 

Are we living in a fool's paradise? Are we heading for yet another financial crisis? Shouldn't something be done?

[tinfoilhat 11]

What do you want doing Anna?

[mossdog 10]

An Office of National Statistics report showed that the top 10% of earners had a disposable income - after taxes and housing costs - of £78,000 last year. These families spent less than £39,000 of that sum.

 

By contrast,the poorest 10% of households had a disposable income of just £5,000 but spent £13,000 funded by borrowing and debt.

 

Saving has fallen to the lowest level since records began in 1963.

 

Peter Andrew of charity step change said 'The reality is too many households simply cannot make ends meet no matter how hard they try.

Not having enough money to make ends meet is not the same as living beyond your means, which implies you have a choice, when too many people do not.'

 

A typical household's outgoings were £900 higher than their incomings last year,

 

Are we living in a fool's paradise? Are we heading for yet another financial crisis? Shouldn't something be done?

....thats because we nearly all have many more outgoings than we did years ago!.......call them luxuries or neccessities,we all have lots more stuff!...more clothes to take to charity shops, more food to throw away,more insurances more tech toys etc,etc,etc.......part of the reason many are in a mess.

[Anna B 1,401]

....thats because we nearly all have many more outgoings than we did years ago!.......call them luxuries or neccessities,we all have lots more stuff!...more clothes to take to charity shops, more food to throw away,more insurances more tech toys etc,etc,etc.......part of the reason many are in a mess.

 

We do have more 'stuff' to be sure, partly because much of it's so cheap (Primark, ebay etc,) but is that really the heart of the problem, or are they just there to disguise the real problems?

 

Food, rent, utilities etc have all gone up exponentially, and bureaucracy costs as well; taxes, council tax, Vat, insurances, licences, contracts, fines, bank charges, debt repayments etc.

Entertainment and holidays are a thing of the past for many. Savings as a % of disposable income are the lowest they've ever been since records began in 1963.

 

Real taxation is now the highest it's ever been, (49p in every pound apparently.) So at least half of what we earn goes directly back to the government one way or another. And that's everybody, not just high income earners.

 

http://home.bt.com/lifestyle/money/mortgages-bills/do-you-know-how-much-tax-you-are-actually-paying-11364066050252

[realcockney 10]

An Office of National Statistics report showed that the top 10% of earners had a disposable income - after taxes and housing costs - of £78,000 last year. These families spent less than £39,000 of that sum.

 

By contrast,the poorest 10% of households had a disposable income of just £5,000 but spent £13,000 funded by borrowing and debt.

 

Saving has fallen to the lowest level since records began in 1963.

 

Peter Andrew of charity step change said 'The reality is too many households simply cannot make ends meet no matter how hard they try.

Not having enough money to make ends meet is not the same as living beyond your means, which implies you have a choice, when too many people do not

 

A typical household's outgoings were £900 higher than their incomings last year,

 

Are we living in a fool's paradise? Are we heading for yet another financial crisis? Shouldn't something be done?

 

people that cant budget and prioritise their income and live beyond their means are always heading for a financial disaster. every time they get bailed out it all starts again:roll:

[Anna B 1,401]

people that cant budget and prioritise their income and live beyond their means are always heading for a financial disaster. every time they get bailed out it all starts again:roll:

 

Could you live on a disposable income of £5,000 a year?

[ricgem2002 11]

people that cant budget and prioritise their income and live beyond their means are always heading for a financial disaster. every time they get bailed out it all starts again:roll:

sounds like the current and previous governments:hihi:

[tinfoilhat 11]

Could you live on a disposable income of £5,000 a year?

 

Define disposable income?

 

I don't know what I was bringing in when the crash came but the belt got tightened pretty quick. Then again I was talking to someone who was getting a payday loan to get something for their child's 3rd (might have been 4th) birthday. Im not sure how you'd adjust that mentality.

[mossdog 10]

Could you live on a disposable income of £5,000 a year?

.......but the vast majority in this country don't have to. You can always cherry pick statistics to suit your political outlook, but from where I stand, most are far better off from when I was starting out!

[ECCOnoob 1,021]

Could you live on a disposable income of £5,000 a year?

 

If that's all my wages allowed me to "dispose" each year than I would have to learn to live with it - just like my parents did and generations before had.

 

£5k a year is more than £400 "disposable" money a month. Yes its a small amount and yes its gonna be tough to live off - but certainly not impossible.

 

Biggest problem these days is far too many people with entitlement syndrome. Luxuries being treated as essentials. Goods and services seen by our former generation as special treats now bought by the masses on an regular basis.

 

Too much easy credit available to those with no collateral and an unrealistic attitude of expecting to have what they want when they want it without any thought as to the consequences.

 

The absolute poorest 10% of households still have over £400 a month left over after housing costs and yet people laughingly definie it as "proverty"

 

Dont know the meaning of the word. There are places in the world where their entire monthy income would be half that amount, let alone disposable money.

 

We dont have a poverty problem in this country. We have people who cant manage realistic expectations.

Edited July 28, 2018 by ECCOnoob

[tzijlstra 11]

The news is that the poorest are at their worst off since 1988. I will give you an explanation that you don't like Anna: Brexit.

 

Chickens coming home to roost, no sympathy except for those that voted to Remain.

[mossdog 10]

We do have more 'stuff' to be sure, partly because much of it's so cheap (Primark, ebay etc,) but is that really the heart of the problem, or are they just there to disguise the real problems?

 

Food, rent, utilities etc have all gone up exponentially, and bureaucracy costs as well; taxes, council tax, Vat, insurances, licences, contracts, fines, bank charges, debt repayments etc.

Entertainment and holidays are a thing of the past for many. Savings as a % of disposable income are the lowest they've ever been since records began in 1963.

 

Real taxation is now the highest it's ever been, (49p in every pound apparently.) So at least half of what we earn goes directly back to the government one way or another. And that's everybody, not just high income earners.

 

http://home.bt.com/lifestyle/money/mortgages-bills/do-you-know-how-much-tax-you-are-actually-paying-11364066050252

......."Entertainment and holidays are a thing of the past for many"!...........record numbers at Arena's, Scarborough beach,Airports .. Channel tunnel, and other holiday destinations...??? do you think you ought to get out a bit more Anna and see what's going on other than where you live?