What’s the real cost of living?
Have you ever thought about how much money you’ll spend in your lifetime and what your biggest costs will be?
Well, Atom Bank have worked it out. They added up every cost – from everyday expenses to once-in-a-lifetime events – for This is Money and revealed you’ll spend around £1.68m between birth and death.
The most expensive things you’ll do are buying a home, having kids and going on holiday, their report found.
For comparison, the cost of a typical lifetime in 1971 was a fraction of today’s figures, at just £81,453. Your biggest expenditures back then would have been raising kids, transport and utility bills.
The impact of inflation
The three most expensive events in your life have largely been driven by inflation – house prices alone have soared by 5,704% over the last 50 years.
This means buying a home in 2024 will set you back £299,000 – and even this is £32,000 more than it would have been three years ago. On average, a house costs more than eight times the average £34,963 salary.
Each child you have costs you £287,570 – that’s over £118,000 more than in 2021.
And holiday costs throughout your life will add up to £198,093, which is over £90,000 more than in 2021.
You’re also likely to spend £32,000 more than you’ll earn throughout our careers, the research found.
Changing spending habits
Rising inflation, changing work habits and the cost-of-living crisis mean there are certain things we’re spending less money on than three years ago.
With the rise in hybrid working and working from home, we’re spending £36,658 less on transport. We’ve also slashed our recreational activities by over £51,000.
On top of this, we’ve cut back on the essentials to make ends meet, including food and drink, personal care, and heating and powering our homes.
You can find tips for saving and boosting your money on our website.
Cutting costs
If you’re struggling to cover your essential costs, it might be time to ask for help.
We can help you with everything from budgeting to making sure you’re getting all the benefits you’re entitled to, as well as advising you on debt solutions (some are free, for others there’s a fee).
All of our debt advice is free and impartial, and you can access it online 24/7 or over the phone during our office hours - 0161 518 8285.
Michelle Kight
Michelle is a qualified journalist who spent over seven years writing for her local online newspaper. Having grown up in some of the North West’s most deprived areas, she has a first-hand and empathetic understanding of what it means to face serious money worries. With a strong interest in mental health issues, she is a keen advocate of boosting the accessibility of financial wellness services.
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