Mancunians £100 better off than Londoners each month, according to research
England’s second city knocks the Capital off the top spot when it comes to the amount of discretionary income the average person is left with each month, according to a new survey by AA Financial Services. Asking residents of both cities how much money they had left each month once their bills and regular outgoings had been paid, the average person in Manchester was left with £709, while average Londoner had £601.
At a time when the effects of COVID has had an unprecedented impact on the nation’s finances – both at a national and personal level – the new research sheds light the differences in people’s savings and costs of living in each city.
The research also found that Manchester also had the edge when it came to saving. Almost 3 in 5 Mancunians said they were able to save more than £100 each month, compared with 50% of Londoners. Moreover, twice as many Mancunians said they were able to save more than £500 each month as Londoners (26% vs 11%).
In addition, they were also more likely to invest money each month. A third of Mancunians said they invested more than £100 each month, compared to a quarter of people in London.
Coming out of lockdown, the majority of people in both cities said they had made new financial resolutions for the next six months, suggesting a shift in people’s attitudes as a result of home isolation. Over a third in each city vowed to put more money away in savings (38% London, 37% Manchester), while resisting the urge to dip into savings for luxuries was a promise made by a fifth of Mancunians (20%), and a quarter of Londoners (27%).
James Fairclough, Director of AA Financial Services commented:
Despite salaries being around 31% higher in London than in the North West, what comes out in the wash after bills and taxes have been paid suggests many Mancunians are better off than Londoners at the moment. However, more importantly than this is how this is influencing people’s approach to personal finance and plans for their long-term financial future. With more discretionary spend at their disposal, people in Manchester are far more likely to save and invest their money than their counterparts in London, and in turn are preparing better foundations for what may be in store – both in the next six months and later on.
“The impact of COVID has meant a drop in income for some due to salary reductions or job losses, while for others home isolation has given a boost to savings. Either way, there has been a fundamental shift in people’s approaches to personal finances, with large proportions seeing the need to save more than they did at the start of the year, and ensure that their money is working as hard as it can for them. At AA Financial Services we have a strong track record for value and service with both loans and savings. For ideas on how to save, and the different options that are available, visit our website.”