It has been reported by the BBC today that the amount of disposable income available to us all it at its lowest level since 1977. I’m certainly feeling the squeeze as bills, tax and inflation all rise yet salaries seem to be frozen and savings cannot earn any interest.
What would i do with £1,000 a year? Probably take a holiday that i’ve not had since who knows when, maybe join a gym and live a healthier lifestyle, certainly put some of it away for the future as my pension fund is non-existant.
The feed in tariff strikes me as an obvious solution. If i take my hard earned savings and put them into solar power on my roof, i will be able to generate energy, which i will be paid for by my energy supplier – nice to get something back from them for a change. This income could see me being about £1,000 a year better off, better than that the payment is linked to inflation so i will really receive this benefit every year until my fifties! The feed in tariff is also tax free so i can take that as income and start to contribute some of my salary into a pension fund, as i am contributing more i am paying less tax and also my employer has to match my contribution making the feed in tariff work even harder for me. I believe i’ve done my sums right and from this simple and renewable installation i will be able to have a holiday once a year, join a gym and live a healthier lifestyle and even retire earlier than would otherwise be possible.