Disposable Income is what is left after all the bills and taxes have been paid. It is what is left for saving and non essential spending.
The increasing price of commodities and the latest VAT rise has seen the sharpest impact on disposable income for 30 years.
The amount of disposable income you have left at the end of the month determines your standard of living. It is the disposable income that determines whether you go on holiday, whether you eat out in restaurants, visit the theatre, buy a new outfit, whether you can afford to join the gym or sports club. It is in fact what determines whether you are ‘Living to Work’, or ‘Working to Live.’
So what can we do to lessen the effect of the rising costs on essentials? We all have to eat food, we all have to use utilities, and we all have to pay our taxes.
Despite the fact that everyone grumbles about energy prices, statistically only 20% of people change suppliers. Some telephone companies recently increased their charges. Did you investigate changing suppliers? Do you plan your shopping and take full advantage of discounted items or special offers? Nobody likes paying tax. Do you think your accountant is giving you the best possible advice to minimise your tax bill? Are you apprehensive about job security or do you have a fear of redundancy? Have you thought about earning a second income stream? All the financial gurus advise us to have more than one revenue stream.
Maybe it is time to make some changes.
It is often when forces outside of our control impact on our personal lives that we look at what changes we could make to combat them.
How much better, however, not to wait until disaster looms?
Don’t wait until you are thirsty to dig your well.
Dare to make those changes now.