One in ten “spends beyond their means at least seven months of the year”
According to a survey, one in ten people spends more money than they have in their checking account for at least seven months of the year.
More than half of people surveyed by Censuswide (59%) said they spend more than they earn at least one month of the year.
The research was included in a How Britain Spends report for website TopCashback, which found people have an average of £323 left in their current account the day before payday.
But 17% said they either have nothing left or a negative balance, for example because they have an overdraft.
Our report makes it clear how much salaries are being stretched
According to the survey, parents with children under 18 typically only have £179 left in the bank the day before payday.
Around two-fifths (41%) of respondents said they worry about the cost of living on a weekly basis.
The research also found that people with higher salaries were more likely to spend more than they earned over a longer number of months, perhaps partly indicating that higher earners have easier access to credit than those with lower incomes.
Adults earning £35,000 a year or less typically spend more than their salary for two months of the year, and those earning more than £100,000 a year spend an average of four months beyond their means, the study found.
Almost three quarters (73%) of people said they do not have complete control of their spending, with almost half (47%) citing the rising cost of living as a cause.
Adam Bullock, UK director at TopCashback, said: “Our report shows how significantly salaries are being stretched.”
The survey of more than 2,000 people, conducted in August, found that almost half (48%) of people’s total spending had increased in the last three months.
Areas where people said spending increased included essential groceries, toiletries and gasoline.
It’s always worth double-checking your account balance to make sure you don’t have to pay for direct debits for old subscriptions you don’t use or for auto-renewal of insurance policies
A quarter (25%) of respondents said they made impulse purchases without first looking for cheaper alternatives.
Sue Haywood, a personal finance expert, commented on the report: “In the current climate, with so many of us making every penny count, making your money work harder is crucial.”
“The fact that people are regularly spending beyond their means is worrying but unfortunately not surprising as households face higher mortgage and food costs. However, there are simple steps people can take to get the most out of their money.”
She suggested measures including shopping and using loyalty schemes, adding: “It’s always worth double-checking your account balance to make sure you’re not liable for direct debits for old subscriptions you don’t use or for the have to pay for automatic renewal of insurance policies.”
https://www.standard.co.uk/business/money/one-in-10-spending-beyond-their-means-for-at-least-seven-months-of-the-year-b1105107.html One in ten “spends beyond their means at least seven months of the year”
