How much do you earn? It is something you would never like to talk about – but when you think about your income, what you feel – rich, impecunious or average. You will be surprised to know that many of us have the wrong idea of our financial status.
Just because you have enough money to keep the wolf from the door, it does not mean that you are a plain average; you may be earning less than you should.
The income that a household needs depends on the size of the family. The income of each household may vary due to the number of adults and dependent children. According to a study, an average household earns £23,400 (UGX 112,786,031) a year. However, people who are living in South West are earning the least each year – not more than £18,400 (UGX 88,686,452).
According to an income calculator UK, if your income is not more than £18,111 (UGX 87,293,496), you can manage with it only when your partner is also earning the same amount a year. It means the total household income will be £36,222 (UGX 174,586,993). Note that this household income is enough if you and your partner are living together, earning and you have a kid in between 2 and 4-years-old.
However, if you are living alone, you need to earn an average of £18,849 (UGX 90,850,594) a year for a decent standard of living.
An income of £18,111 a year could be all you need to survive
Here is the breakdown of your weekly outgoing i.e. £690.57 assuming both YOU AND YOUR PARTNER are earning £18,111 a year.
|Personal goods and services||£37.55|
|Other housing costs||£14|
Living on such as low income is quite tough. If you would like to live in London, South East, Northern Ireland, and other parts of the UK, you will have to earn more than the average income of £18,400 (UGX 88,686,452).
Even if you are living in South West, you cannot consider yourself just as plain average, because your household income is less than £18,400.
Of course, not all people can successfully get by with such low income, but some are smart enough to keep their head above water.
Hold your end up
If you are earning less than the average income, you will have your finances overwhelmed. Much as you try all the harder to whittle down your expenses, you will likely spend several nights up hungry.
Families like you living on very low income make do with whatever is available with them, quashing most of their desires just to provide all basic amenities – food, shelter and clothing – to their children.
You will not be able to reduce most of your expenses, but you can give up your bad habits like smoking and alcohol. No matter how bad you are at managing your stress, drowning your sorrows is not a good way to escape financial stress.
- You should create a budget and track your spending.
- Use free online apps for budgeting and saving. They can raise the alarm bells if you come closer to the spending limit.
Your parents can be your backbone
Your first approach should be to improve your living style. The more frugal you are, the better it is. However, it is not always possible to get on despite controlling your spending. In this situation, you can turn to your parents to seek financial assistance.
Your parents can at least provide financial support for your children during a financial crisis. Their help can keep your children from missing valued aspects of growing up such as paying for after school activities when you cannot afford it.
Try to get a reasonably paid employment
You cannot survive on less than the average income for a long time. Expenses continue to grow with each passing day due to the soaring cost of living. Therefore, you should try to aim at getting a reasonably paid employment.
A steady source of income ensures that your pay will rise as per the employer’s policy and you will be able to keep body and soul together.
Along with your full-time job, you should look for other ways to earn money. You will have to work harder if you want to sustain in the long run. If you are an average earner, you will be able to fund your unexpected expenditure.
Nowadays direct lenders allow people to apply for no credit check loans online from direct lender in London, UK during a financial emergency.
Get along with your partner
Financial circumstances get worse if you part ways with your partner. This leaves the entire financial burden on one person. With half of the income, it becomes all but impossible to bear up.
- Couples usually have a different attitude to money and budgeting. You should sit by your partner to discuss spending, budgeting and saving.
- If you have anxiety and depression due to lack of money, talk to your partner immediately. This can help you shake off worries.
- Keep motivating each other, which is crucial to withstand the tough time.
Living on an average income is undoubtedly no picnic. You need a stable job, steady income, affordable childcare, and benefits. Try to get a job that pays you a good remuneration. If your earnings are low, make sure that you receive benefits with no cut. Create a budget and track your spending to curb overspending.
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Author: Stacey Walsh
Stacey Walsh is a writer with heart and passion where she has opted writing as her full-time career. Currently, she has been developing content in the finance niche for the past two years. With her blogs and web content, she brings new financial topics of the market in front of the audience so that they can clarify their doubt.