Joe Makin, a 23-year-old administrative worker from Selby, North Yorkshire, has an annual income of £22,000. A whopping 66% of this total is directed towards housing and utility costs, draining around £14,520 from his salary each year. Despite the high expenditure, Makin manages to set aside a considerable amount of £7,480, which he attributes to frugal living and careful budgeting.
Understanding the importance of financial planning, Makin is on the lookout for ways to boost his savings. Steps such as consumption adjustments, smart shopping, and prudent investments are part of his strategy to secure a firm financial future. However, even with a marginal decrease in National Insurance rates, Makin finds the impact on his finances minimal.
Makin’s living situation deepens his financial worries. He resides in a one-bedroom home, leased, where around £1,000-£1,100 of his £1,600 post-tax monthly income goes towards expenses. This predicament leaves him with a disposable income ranging between £500-£600 each month. Even the tiniest unexpected expense often forces him into overdrawing his account, lingering financial instability.
Alongside this, Makin finds the lack of financial support schemes like the Energy Bills Support Scheme problematic. It adds pressure on his already strained finances and raises concerns about the potential repercussions for others. Coupled with the ongoing cost of living crisis, Makin is under constant financial strain.
In a similar fashion, Aga Szedzianis, an associate architect residing in East London with family, also faces financial stress due to climbing living expenses. Despite both Aga and her partner earning just over £50,000 each, the burden of childcare costs and looming mortgage increases has led them to halt their pension savings plan. This issue paints the wider picture of middle-income families in Britain struggling with the escalating cost of living.
Rebecca Bostock, a case manager from Daventry, Northamptonshire, earns £27,000 but faces obstacles saving for home ownership because of rental dues. With no room for savings due to growing living costs and stagnant wages, she remains hopeful for new government schemes that can help first-time homebuyers like herself.
David Stuart, a data analyst in Whitburn, Scotland, faces his own set of financial complications. After his income rose from £25,000 to £50,000, his eligibility for certain benefits decreased. Stuart, hopeful for a more balanced system, is pushing for system reforms that promote equality.
