Feeling the pinch
Research by Ernst & Young shows that the average household is 15% worse off than it was five years ago, as measured by looking at discretionary income. That is the amount of income remaining after taxation and household bills have been met. In 2003, discretionary income was 28%, where as today it is just 20%. With further increases in fuel costs, food bills and rising inflation, the propects for further reductions look high.
It just goes to show how important it is to make your money work as hard as possible for you, be it through obtaining a higher bank savings rae, or more importantly shopping around for the best deal, to help make the pennies go as far as possible.
Tags: ernst & young
