More than a third of Britons run out of money before payday, with one in five out of cash by midway through the month, new research shows.
Rising living costs and persistently high inflation have left households across the UK stretched and worried about their finances, with credit card firm Aqua reporting an increase of more than 300 per cent in people searching online for terms related to “money anxiety”.
Close to two in every five people (38.8 per cent) fail to make it from one salary payment to the next without running out of cash, while one in six find themselves out of money just a few days before payday.
While recent expense rises will doubtless be contributing to this pool, some may also find issue with lifestyle creep, where spending increases in line with pay rises, or else needing to create a stronger or up-to-date budget for themselves.
Concerningly, more than one in 10 (11.4 per cent) describe themselves as running out “within the first week or two of the month”, which can lead to taking on debt to pay expenses.
The same research suggests that to make ends meet, Britons are turning to a wide range of options, including almost a quarter (23.4 per cent) having a side hustle or freelancing, with another 11 per cent taking on a second job.
Another one in four (25.6 per cent) regularly turn to their savings or investments as financial support, though tellingly, almost three in 10 (29.7 per cent) say they do not save any money at all across the course of an average month.
For those who do manage to save, the average amount put away is £152, with respondents from places including Liverpool, Manchester and Plymouth putting away more and Southampton, Sheffield and Norwich saving considerably less.
Duncan Fortune, head of commercial at Tesco Bank, suggests the start of September – as a back-to-school moment and the end of summer – can act as a natural check-in period for people to review their finances ahead of winter and Christmas.
“It’s essential to understand your financial habits and where you’re spending your money. Reassess how much you need to cover essential outgoings, such as your mortgage or rent, household bills and food costs,” he said.
“It's also worth checking whether any regular contracts or subscriptions could be reduced or switched for a better deal.
“Once you’ve covered the essentials, see how much you’ve left for lifestyle spending. This is particularly important given that 21 per cent of Brits admit they don't know how to best balance saving with day-to-day living costs and other financial goals, while a third (33 per cent) say they prioritise experiences and treats over how much they have in savings.”
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