ABNA24 - 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 showed.
Increasing cost of living concerns and the ongoing high-inflation environment across the UK have households stretched and worrying about finances, with credit card firm Aqua reporting an increase of well over 300 percent for people searching "money anxiety" terms online, The Independent reported.Close to two in every five people fail to make it from one salary payment to the next (38.8 percent) without running out of cash, with one in six finding themselves out of money just a few days beforehand.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 ten (11.4 percent) 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 percent) having a side hustle or freelancing, with another 11 percent taking on a second job.Another one in four (25.6 percent) regularly turn to their savings or investments as financial support, though tellingly, almost three in ten (29.7 percent) 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,” he added."Once you've covered the essentials, see how much you've left for lifestyle spending. This is particularly important given that 21 percent 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 percent) say they prioritise experiences and treats over how much they have in savings," he said.
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