When is your Income Independence Day?

When is your Income Independence Day?

According to new research from Halifax, Friday 22nd was the day in the month of May when the average UK household has worked enough days to pay off their main living costs.

Based on the average UK household monthly living cost of £2,043 and the average gross monthly household income of £2,956, Halifax calculated that, looking across the calendar month of May, the 22nd would be ‘Income Independence Day’.

This was the day that living costs have been covered and an average households’ monthly income becomes their own to use as they wish for the remainder of the calendar month.

They discovered regional variations in the date for an Income Independence Day.

Households in Yorkshire and the Humber and the North West had a shorter wait this month for the money they earn to be their own to spend on whatever they wanted, having, on average, paid off their living costs two days ago on 20^th May.

Perhaps unsurprisingly, households in London had to wait another four days for their Income Independence Day to arrive on the 26^th May.

This research acts as a wake-up call for families who are working hard for the majority of the month simply to meet essential items of expenditure; income tax and national insurance, food and non-alcoholic drinks, housing (mortgage and energy/water), health, clothing and footwear, transport and communication (telephone and internet).

With good Financial Planning, it is possible to understand which expenditure items are truly essential and how the balance between work and life can be managed.

Do you know when your own Income Independence Day fell this month and are you taking steps to ensure it falls earlier in the month of May next year?