How much spare cash do you need to be happy?
How much money would you need to be happy? A new Cash Happy study from SunLife set out to see if there is a correlation between how much money you have at your disposal and your happiness.
And its research found that, after a number of other factors which influence happiness are removed, the happiest 10% have £310 spare cash each month. That's the equivalent of £71.54 a week.
How much spare cash do you have?
SunLife's research found that the average monthly household income is £1,970. On average, £4 of every £5 earned then disappears on bills and regular spending.
For example, the average monthly rent bill comes to £433 while the average mortgage repayment is around £450. An average £250 goes on loan repayments, with £120 spent on credit cards. Add in things like transport, clothing and food and generally we only have £166 spare cash per adult.
That's the equivalent of £38.19 a month, £33 less than the happiness figure.
Dean Lamble, managing director of SunLife, said: "[Our research] shows that financial happiness could be more attainable for many people than they might think, with the average person needing to find an extra £33 a week – less than £5 a day – in spare cash to be among the happiest in the UK."
Cut your outgoings!
Whatever spare cash figure you'd need to make you happy, this study should emphasise the importance of budgeting and ensuring your outgoings are kept as low as possible.
So sit down and go through exactly where you spent money last month. See if you can spot a few ways to reduce your spending, whether on relatively small bills like your mobile phone and broadband, or on the more significant ones like your mortgage. And remember to shop around for your weekly or monthly groceries.
If your car or home insurance is coming up for renewal, don't just sign up with your existing insurer for another year – be sure to shop around and see if you can get a better deal.
Alternatively, you could look at ways to boost your income such as selling off things you no longer use and checking you receive all the benefits you're eligible for.
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