More and more families have become dependent on two incomes. The moment one of the two incomes disappears, shortages arise. Families with a double income also buy a house that they can finance to the maximum extent possible. There is a lot of hidden poverty in the Netherlands. It is estimated that there are hundreds of thousands of families who are permanently in financial trouble. Of these, around 50,000 families are in debt restructuring. Their average debt is well over twenty thousand euros. Our society is increasingly based on a high family income. Houses have become so expensive that a family with an average income can no longer buy a house. These families must be more careful with their monthly budget.
How do financial problems arise?
Families with financial problems do not only occur among those with low incomes, families with well above average incomes are also increasingly turning to debt assistance. Not all families with an income at social assistance level have debts. It is often also a matter of using money wisely. Of course, these families are more likely to get into trouble. They do not have the opportunity to save monthly and cannot take out a loan to cover a setback. Problems often arise from a lack of overview. They don’t know how much they are spending and how much is left to spend for the rest of the month.
Getting by on two incomes
Unlike the past, today there are few families with one income. Society is now fully prepared for this. Couples who both work are no longer satisfied with the lifestyle of the older generation, which was completely based on one income. Dual-income couples receive more monthly, but also spend much more. They can easily afford a house worth over 300,000, so they will buy that too. If one of the partners loses his or her job, problems can arise. Their expensive way of life is then no longer affordable.
Living on one income
Dual-income households also have higher costs compared to single-income households. If one of the partners is at home to look after the children, there is no need to pay for the increasingly expensive childcare. Families with one income at the average level or lower still have to be creative with the available money. They must ensure that monthly costs are kept as low as possible, and there is no room for major setbacks.
Setting living standards at a certain level
The situation is different for families who have to survive on an income at the social assistance level, but families with incomes above average should be able to easily survive on the income. Most problems have arisen from too high a standard of living. They have to go on holiday a few times a year and of course they also need a new car. By living a little more frugally in terms of spending patterns, these families can gain more financial freedom. Living in an expensive house should not become a goal in itself. It is better to live in a cheaper house than to have to struggle every month to get and keep your financial house in order.
Buy a new house
When buying another home, you should not rely on the maximum amount you can borrow, but rather look at how much you can spend on housing costs each month. By reversing the approach, money worries will arise less quickly.