October 28, 2019

60% of the salary of Spaniards is consumed in expenses and debts

The necessary day-to-day expenses, together with those intended for debt repayment, consume more than 60% of the income of the Spaniards. This is indicated by the online crawler comparator.

Specifically, the expenses that occupy most of the income of the Spaniards are those destined to pay necessary expenses of the day to day. The bills, food or transportation. They account for almost 43.2% of what consumers earn. While those dedicated to amortizing debts incurred in the past account for 20.4% of the total.

This distribution of the budget to cover basic consumption needs leaves little room for other important issues. As are savings, leisure and even investment.


Rest of the money available

Rest of the money available

Although by a very narrow margin, the Spanish prefer to spend their money on things that they classify as expendable (15.22%). As are whims, night outings and leisure, rather than devoted to saving. In fact, 15.17% of the income is dedicated to this end. Along the same lines, 43.3% of respondents say they do not save. Or that it saves no more because it prefers to indulge.

Regarding investment, although the proportion of income dedicated to it is modest, and barely reaches 6%, there is a considerable part of the population that prefers to give up current consumption for future benefits. That is, up to 41.5% of the population states that they allocate money for this purpose. And choose to invest some of your current resources. With the expectation of receiving a return later.


Most contribute the maximum amount to your day-to-day expenses

credit loan

As for the distribution of income, all generations agree that they contribute the maximum amount to the necessary expenses of their day to day. Although the contribution progresses as the age of consumers. Something logical if one takes into account that the economic burdens of young people tend to be lower than those of the elderly.

Precisely the opposite occurs with expendable expenses. Since in this case it is the adults of greater age – between 55 and 65 years of age – who spend the least for that purpose (13.3%). In contrast are young people between 18 and 24 years old (23.9%).

But not all generations prefer to spend their money on expendable things. Thus, the only ones who dedicate more of their income to savings rather than superfluous expenses are those between 25 and 44 years old. Young people between 25 and 34 years allocate 20.3%. And those between 35 and 44, 14.1%. Although both, the older generation (35 to 44 years) does so by a very narrow margin of difference. This does not reach a percentage point.

written by Rosemary Cummins - Posted in Debt