How much are your monthly bills?

Almost every household in the UK pays out a monthly sum of money that makes up the primary cost of living, yet despite everyone having monthly bills for the same assortment of services, it is unlikely that every homeowner if forking out the same sum. From household to household, the cost of monthly bills can vary dramatically.  Even homes on the same street, with exactly the same number of occupants, can see a substantial difference in their monthly bills.

One of the main concerns when it comes to monthly bills is just how much people are paying out, in comparison to what they think they are spending. In an article by This is Money published in 2014, a study into what UK residents were paying each year, compared to what they thought they were paying, found that on average, households under-estimated their bills by £770. The underestimation of a little over £64 a month being paid out is a large sum for many families, and is a good enough reason to overhaul expenditure, and drill down deep into the details.

Running a home: How do the costs break down?

Generally, monthly bills include all of a household’s outgoings that are deemed to be essential, along with those that are required to maintain a certain standard of living. Council tax and rent/mortgage are two of the biggest expenditures each month for most families, and often, the costs that vary the most.  Along with the primary cost of housing, the next main essential for running a home are utility bills; covering gas, electric, water, as well as broadband bills, phone bills and mobile phone contracts, or pay as you go payments.

With almost all families having to pay out for all the aforementioned utilities, the prices can change depending on how many occupants are in a house, and the typical tariffs they’re on. On top of utility bills, there is also the cost of food, annual TV licence bills, entertainment costs, insurance cover and costs for transport, along with the price of maintaining vehicles. Although such expenses are inevitable, you’ll be pleased to know that with a little help from My Energy, the cost of these outgoings can be in your control.

Your monthly bills vs the average monthly bills

If you have ever considered how much your monthly bills are in comparison to other people’s monthly bills, the answer can come as a shock. The difference in monthly bills between families is very dependent on location, energy usage, and travel requirements. People living in central cities generally see the cost of their monthly bills come in at a much higher figure than those living in less populated areas.

On average, the rent in a central area in London costs around £1,430 a month for a 1 bedroom flat, while this falls to £450 a month for the same sized flat in an area up North like Hull. While the cost of monthly bills does see an increase with the average earnings in an area, the differences are often not considered when people choose a location to live.

As well as the variation in location reflecting in the price of monthly bills, utility bills can also differ significantly. With 100’s of energy providers in the UK alone, and a multitude of different providers, all offering different deals, the cost of which providers people choose is heavily reflected in their monthly bills. This can also be increased or decreased dependant on how much energy people use.

Cutting costs to save on monthly bills

In the face of rising prices across the board, many people are looking to drive down their monthly bills in any way they can. On average in the UK, nearly 50% the income of a family living in a 3-bedroom house, is being spent on bills each month. As the cost of bills are rising at a faster rate than the average household income, people are experiencing a lack of expendable income, and a reduced ability to save. There are many different ways that people have found to cut the cost of their bills every month, without cutting back on what they use and need. Here’s a few primary pointers to offer some food for thought:

• Phone payments – There are a vast array of mobile phone packages and tariffs on the market, covering different amounts of usage. Normally after signing a contract, it’s common for people to let it run its course until the end, but in many circumstances, the amount of texts, minutes, and data you need is not the same after a year, or even 6 months, and there is room to reduce the cost.
• Energy usage- Many families don’t know just how much energy they use by leaving lights on, or by allowing devices to stay on standby overnight. Turning off electronics, reducing the heating temperature, and getting your meter read often, can also reduce your monthly costs considerably.
• Council tax- Moving to a better council tax band for reduced monthly cost is not always possible, but there are many reductions available for certain residents. Checking to see if you’re eligible for a reduction can reduce your bills significantly over the course of the year.

Comparing your provider for a better deal

When it comes to reducing energy bills, there are a lot of options that can stop you worrying about your monthly energy bills, and start you on the path to significant savings instead. Every energy provider offers something different, tailored to your family’s individual requirements, as opposed to tariffs that are designed to suit the majority. An article by Citizen’s Advice goes into greater detail about the significant difference between cheap and flexible tariffs. If you want to start saving sooner, and free up a little extra as expendable income, My Energy enables you to compare all available tariffs on the market, to order to source the tariff that best suits the needs of you and your family.