Household bills are often attached to all the essential things we cannot do without but new research shows these costs really do add up – to over £700,000!
The average person spends more than £700,000 on household bills during their lifetime with the main expenditure going on transport, recreation and culture costs.
According to uSwitch, an eye-watering £713,232 is spent on bills and living expenses; showcasing the need for careful financial management throughout our lives.
The major outlays in life
Transport costs were found to total £70.40 per week for the average household, adding up to more than £164,700 during the course of a lifetime.
Around £64 is spent weekly on recreation and culture which adds up to nearly £150,000 throughout the course of life while food and drink adds up to nearly £138,000.
However, one of the most staggering household expenses is energy where more than £62,000 will be spent during our lifetimes– equivalent to nearly double the average pension pot or house deposit.
This doesn’t have to be the case though. Switching to cheaper tariffs could save individuals in the region of £10,000 during their lives and reduce total expenditure considerably. Unfortunately, despite these possible savings, two thirds of customers have never switched.
The money saved could be used to repay debts or saved for rainy days. It could even be put towards a holiday or other expenses which is why the New Year could be the best opportunity to switch energy suppliers.
The cost of living adds up
Household goods and services totalled more than £77,000 per lifetime while clothing and footwear added up to nearly £53,000. The average person will also spend more than £20,000 on education; although this figure has risen drastically in recent years as university tuition fees increase.
The final major outlay noted by uSwitch was health, which costs people an average of £14,500 over the course of their lifetime.
All of the calculations were made using data from the Office for National Statistics and will vary depending on a number of factors. Geographical location plays a key role as those in the South of the UK are more likely to spend larger amounts over the course of their lives than those in the North.
Getting finances in check
The start of the year represents a great opportunity for people to get their finances in check and see exactly where their money is being spent.
Creating specific accounts or using a debit or prepaid card to cover some bills is a great way of managing spending on household bills or food, for example, and sticking to a budget could enable households to make large savings in the long term. The initial process is all about discovering where savings can be made and this means gaining a thorough understanding of all expenses being made.