One in five can barely pay fixed costs and has little buffer | Money month

Converted, between 1.5 and 1.9 million households would have difficulty paying their fixed costs. This is evident from representative research by market research agency MWM2 among a thousand Dutch people, which was conducted this month at the request of this site. Almost one in five respondents (19 percent) thinks they have insufficient buffer for unexpected events. Money worries mainly affect young people under the age of 35 (36 percent) and Dutch people with a disposable income of up to 2,000 euros (32 percent). These groups most often indicated that they had difficulty paying fixed costs.

The National Institute for Budget Information (Nibud) recognizes the image. “If you have little money, everything that comes your way unexpectedly in bills causes worry and stress,” says Karin Radstaak on behalf of the institute. “If you paid a relatively fixed amount for your energy bill for years, an outlier like what we experienced last year can be very difficult. Then you don’t know how to deal with that.” This also applies to young people, says Radstaak: “They more often have an uncertain income, no permanent contract and an uncertain living situation.”

In order to provide financial support to households, leaked Budget Day plans previously made it clear that the outgoing cabinet is tightening its budget and freeing up 2 billion euros for poverty reduction. Among other things, the higher healthcare and housing allowances will be maintained and the child-related budget will be increased. Households where the energy bill represents a disproportionate part of their income can also appeal to the Energy Emergency Fund. All income groups should improve slightly in purchasing power, according to the government’s purchasing power maps.

At the same time, the government expects that the health insurance premium will increase by an average of 12 euros – insurers ultimately determine their own premiums, beer and cigarettes will become more expensive and the tax at the petrol pump will increase. This is expected to make a difference of ten euros on a full tank, although the question is whether the House of Representatives supports this increase in excise duties. On top of that are supermarket prices, which remain high. Statistics Netherlands’ inflation figures showed that products in the supermarket were 10.3 percent more expensive in August than a year earlier.

The increased costs are now putting a heavy burden on the average Dutch person’s wallet: 39 percent of respondents indicate that they can save less than a year earlier: ‘Everything has become more expensive, so there is hardly any money left at the end of the month’. said one of the respondents.

Another: ‘The price of groceries is increasing, subscriptions have become more expensive, fixed costs have all increased. Then you can simply save less, especially if the income remains the same or only increases by 100 euros.’ In the central wage requirement yesterday, the FNV trade union demanded that wages rise between 5 and 14 percent next year due to high inflation.

Two in ten respondents indicate that they currently have no savings. This mainly applies to the group with a disposable income of up to 2,000 euros, where 38 percent have no money on hand. But the group with an income between 2,000 and 4,000 euros often cannot put money aside: 18 percent have no savings. With a disposable income between 4,000 and 6,000 euros, one in ten respondents has no money on hand.

Nibud is concerned. ,,Always. We have now seen what can suddenly happen when inflation is suddenly much higher and energy prices rise. Some households cannot handle that. These groups turn over the money six times before they spend it. Can budget like no other because they have been doing it for years. If temporary measures are removed again, people who live on a minimum budget will be structurally short of money,” says Radstaak. “I don’t yet know to what extent this will be resolved in the Budget Day plans.”

Due to the increased prices, we have also started spending less, with almost two-thirds of respondents (64 percent) spending less. Spending in the supermarket is particularly closely examined. More than two-thirds of respondents (67 percent) say they pay more attention to prices when visiting the supermarket.

But other expenses are also being cut. For example, almost three-quarters (74 percent) of respondents say they spend less money on clothing and 70 percent spend less money on the catering industry than last year. More than half also spend less money on holidays (55 percent) and 27 percent of respondents are cutting back on a sports subscription.

The bills that are the first to be left behind when there are financial worries are contributions and subscriptions (48 percent). This is followed by telephone, television and internet bills (27 percent). It is striking that if there is a need, only 34 percent know where he or she can get financial help. Two-thirds (66 percent) do not know where to turn.

Read all the stories about saving and personal finance in our Money Month file.