Seven in ten people in full time employment have at least a quarter of their monthly income left over once bills and essential items are paid off, according to new research.
The data from Lloyds Bank suggests people are finding it easier to save funds and accumulate money for discretionary spending.
The study was based on the average UK gross full-time salary of £33,511 and means more than three quarters of Brits have at least £500 spare every month.
The average monthly full-time salary (after tax and National Insurance) has increased in the last three years from £2,048 to £2,154.
More options to save
Saving is easier according to the Bank as 68% of people revealed they would save money if they could compared to a lower 52% back in November 2011.
An increase in options is beneficial for all concerned as it also means they can take more control over their money management.
Three in ten people revealed they had half of their income remaining after household bills and essential items were cleared while one in ten people even said they had three-quarters of their finances available to spend, allowing them to place more emphasis on preparing for the future.
Increasing confidence
Putting funds into savings accounts could mean a certain level of interest is gained while some funds could even be placed into pension pots or long-term saving accounts.
People’s confidence in their finances is up when compared to a year ago, with more people believing they can now save more than was previously possible.
It is important to note that families who earn the national minimum wage will not have such large sums of finance available when the essentials are paid off. As a result, good money management is essential to ensuring that funds are available to maintain a good standard of living.
Financial management with prepaid cards
This could be achieved with the use of a prepaid card as any disposable income could be loaded on to it while a bank account could store money for essential payments.
Since only the funds on the card can be spent, this prevents overspending while the lack of a credit facility means it is impossible for anyone to rack up debt when using the card.
The cards can also be topped up when necessary so that funds are available if needed – any top ups would need to be carefully managed though in order to stay within a budget.
