From Modest to Carefree: Calculating Hungary’s Living Expenses

In the latest quarterly poverty survey of the Equilibrium Institute (Egyensúly Intézet), a net monthly income of HUF 250,000 (EUR 654) per person is considered necessary for a modest standard of living. According to the survey, an average standard of living requires HUF 350,000 per person monthly, while a comfortable life is ensured by HUF 600,000 (EUR 1,570) a month.

The study reveals that three percent of respondents have no income and 47 percent are earning less than HUF 250K per month. This indicates that

one in two respondents struggle to make ends meet

without the support of a spouse or relative. In addition, 24 percent of people surveyed reported having a net income of more than HUF 250K per month but less than HUF 350K per month, while

three percent reported a net income of more than HUF 750K (EUR 1,963) per month.

The latest results show that almost three quarters of Hungarians have an income below the level considered necessary for an average standard of living. On a quarterly basis, the share of those with a net income above HUF 350K increased by five percent compared to September 2023, while the share of those with an insufficient net monthly income decreased by four percentage points compared to the same period last year.

In terms of financial resilience, 25 percent of respondents said they could not cope with a sudden expenditure of HUF 100K (EUR 261), while 45 percent could manage such an expense on their own. The latest results show that 28 percent could pay the indicated amount without any problems. 

Despite the economic challenges, optimism has increased compared to last year,

with 62 percent of Hungarians expecting to have enough money to pay their heating bills in the next quarter. While six percent will not be able to heat their homes at all, 29 percent will face occasional challenges. It is notable that the share of the most marginalized groups, including the elderly, the less educated, and those living in villages, fell from nine to six percent, while the proportion of those facing occasional problems rose by four percentage points.

As for income expectations, more households now expect an increase than they did in September.

Although 65 percent of respondents still anticipate that their household income will remain unchanged, the number of people expecting an increase rose by five percentage points (from 7 to 12). In contrast, around a fifth (19 percent) of households expect their income to fall. Compared with the same period last year, society is more optimistic. The overall proportion of households predicting a fall in income decreased by seven percentage points, while the proportion expecting a rise in income increased by seven percentage points.

Via Világgazdaság; Featured Image: Pixabay