The above is a standard list of a typical family's monthly expenses. It is not exhaustive by any means and of course includes essential and non-essential payments.
Some families spend more on certain areas and less on others. The reality is that these payments, and the ability to make them, dictate your lifestyle.
As advisers we have a duty of care to challenge our clients on how their lifestyle would change and how their lives would be impacted if something happened their income and therefore, their ability to meet all the costs outlined above.
We often hear "I get sick pay", or "we could manage on one wage".
But what happens once your sick pay ends? Can tightening your belt and living off one wage/salary really allow you to meet all the essential payments you need to, never mind protect your lifestyle without adding financial stress to an already difficult time?
What will life look like after 3 months surviving on one income?
Few families take time to really consider what they spend their money on, looking at their income and expenditure to fully appreciate what an asset their income is. Without it, there is no lifestyle and potentially the family home is at risk.