Cost of Living: New Research Reveals How We are Spending Our Disposable Income

As the cost of living continues to be a hot topic, money experts at Moneyboat wanted to dive deeper into how Brits feel about their disposable income — the money left over after paying essential bills like rent or mortgage, utilities, and groceries.

To get a clearer picture, the experts conducted a survey* asking participants about their satisfaction with their disposable income and how much they think is necessary to live comfortably, what they’re spending their disposable income on and if people believe older generations had it easier.

71% of residents in South Wales believe the cost of living has impacted disposable income 

The ongoing cost-of-living crisis has impacted many Brits, with 71% of respondents in South Wales stating that their disposable income has been significantly reduced. However, 25% reported no change in their financial situation.

When asked if they believe older generations understand the financial challenges faced by younger generations, 30% said no. 

How residents here plan their spending for events throughout the year

When asked how they plan their spending for events throughout the year such as Christmas, back-to-school, etc 40% save throughout the year whilst 35% budget monthly leading up to the event. 23% however, don’t plan at all.

How much do South Wales residents feel they need to live comfortably?

On average, residents believe they need around £466.50 in disposable income to live comfortably, per month.

Spending habits: Where does the money go?

South Wales residents, on average, stated they allocate 17% of their disposable income to spending things on themselves such as entertainment or hobbies.

When it comes to specific spending, South Wales residents prioritise eating out, with 49% of respondents saying they spend their disposable income on eating out. Holidays came in second at 46% and home maintenance third at 39%.

You can see the top five expenditures below:

If you’d like to find out more, you can read the full research HERE.