Research from Bright Grey’s Financial Safety Net report also shows that housing and household bills take a further 82 days to pay off.
So, after their tax obligations, the average British full-time worker has to work solidly until late July to keep a roof over their heads each year.
Alarmingly 17 full days are needed to keep up with debts that average out at nearly £1,500, almost 50% more than is set aside for an annual savings pot (just over £1,000).
This is all worked out on the basis of the worker paying for everything up front rather than as a percentage of each month’s pay.
By highlighting all the other freedom days, the Financial Safety Net report reveals how long it takes to fund different aspects of our lives and lifestyles.
‘Rent/Mortgage Freedom Day 2012’ will fall on Monday 23 July. From that day on, household bills such as water, gas and telephone will take a further half a month to pay off, and it will be mid-September before food shopping has been accounted for.
Roger Edwards, proposition director, Bright Grey, commented: “There are such a range of costs that many families struggle to cover during the course of the year – and it’s quite scary to think that we spend more on taxes than housing, bills, groceries, debts and transport put together.”
Once taxes and housing costs have been paid, everything else follows in priority order. And of course, whilst many people can make ends meet by the end of the year, there are a significant number of individuals that do not have enough disposable income to cover their outgoings, and essentially need more than 365 days to be able to cope with their spending requirements.
Edwards continued: “In Britain, there is a lack of financial planning and protection is part of this, even though the benefits of life, income protection and critical illness cover far outweigh the relatively small costs. Only 40 per cent of people currently have a protection freedom day, with the rest of the population not having any protection cover at all.
“We encourage people to, where possible, stake a greater percentage of their salary into valuable products that can financially safeguard their futures and make all other aspects of their life possible should disaster strike. Today represents the first day of the year you have a say in what you spend, so it pays to make decisions carefully.”
