Its little things that determine how well off we feel, little things like how much we earn, and how much we have to spend.

Yet, it’s these little things that economists seem to forget about. Back in 2007, Ernst and Young put out a report saying that the average household had £837.53 to spend each month after total fixed monthly outgoings, compared with £898.54 in 2003/04. By fixed monthly outgoing, we are talking things like council tax, mortgage, cost of travelling to work, and utility bills.  So the press said the economy was growing, the government said we were better off, economists celebrated the boom, and yet we were worse off. It is no wonder we then went into recession, the wonder is that so few predicted it.

Now Verdict Research has forecast that the amount of money we have left over after paying key bills will be less in 2013 than today.

Peter Saunders, from Verdict said “It doesn’t matter which shade of government we have, taxes have to go up. And that will strip people’s incomes.

“Mortgage rates, which are at a very low level, are set to increase. And utility bills are also likely to rise. This will all take money out of people’s pockets.”

Verdict reckons that by 2013 your average household will have 35.1 per cent of their income left after paying key bills. At the moment that figure is 38.4 per cent.

Are they right? Well yes and no.

Interest rates may go up, meaning our mortgages will rise. But frankly no one knows whether this will happen or not.

Tax will almost certainly rise. So too will commodity prices, such as oil. Food may go up too.

It is down to globalisation. An inevitable consequence of developing countries getting richer is that raw material will go up in price.

But another consequence of the globalisation is that manufactured products will get cheaper.

So, while it is true some of the things we just have to buy, such as fuel for our car or for our heating, will go up in price, some of the luxury items may actually fall in price.

We may have less money to spend on fun things, but the fun things may end up cheaper.

Except for holidays that is. The cheap pound has put pay to cheap holidays.