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How does your household’s disposable income compare to the national average?

What is disposable income? We're talking about the amount of money that households have left in their wallets to save or spend after taxes and benefits have been taken into account. The ONS latest figures – which are for the financial year ending 2020 (April 2019 to March 2020) - shows that the average (median) household takes home £29,900 a year after taxes and benefits.

Of course the past year two years have been anything but 'average' so if you find yourself in a position where you are struggling to pay your bills, or have got into debt, get in touch with us at MoneyHelper. 

How much do you have left after essentials?

These figures might seem high, but they don’t include essential spending such as rent, bills and food.

Once these are taken out, it might not leave much for additional spending on the things you want but don’t necessarily need – often called discretionary spending. So if you want to try and find more spare cash, your first step should be to set up a budget. You’ll be able to see exactly where all your money is going, and hopefully find ways to cut back and give you more cash in your pocket.

Of course, for some of us the disposable income after tax might not even cover the basics.  If you find you can’t pay your bills, or are forced to pay for your supermarket shop on a credit card, it’s a sign you might be heading towards problem debts. Don’t ignore it. It’s easy to find free and independent advice which could help you start to get back in control of your finances. 

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