One in ten workers worry about running out of money... on payday
- Just under 22 million people have concerns about making ends meet each month
- Four million of these start to worry within days of receiving their monthly pay cheque
- People find it hard to budget properly, with 17 million people admitting to regularly overspending
Around one in ten workers start to worry about running out of money almost as soon as they receive their monthly pay cheque according to new research out today. Just under 22 million (43 per cent of the adult population) have concerns about making ends meet each month, but a startling four million of these start to worry within days of receiving their monthly pay cheque, according to the latest Disposable Income Index from ISA provider, Scottish Friendly.
The results reveal the extent to which UK adults live hand-to-mouth, with most people experiencing their ‘payday mayday’ - the point at which they worry about running out of money each month – seven days prior to their next monthly pay cheque. However for nearly nine million workers this panic point hits home a lot sooner.
With a third of those surveyed – equating to around 17 million UK adults – confessing to overspending, despite trying to keep on top of their finances, it is becoming increasingly difficult for people to make ends meet, the ISA provider claims.
Calum Bennie, communications manager at Scottish Friendly, commented:
Reckless spending and poor budgeting might account for some people falling slightly short of money before their pay day, but the real concern here, are the swathes of people who live frugally enough, but are still struggling to manage their outgoings.
Our report highlights a large proportion of people - almost one in five adults - are focused on paying off debts. Although commendable, it stands to reason that much of people’s disposable income is eaten up in this way. This is especially prevalent in the younger generations, where 21 per cent of 18-24 year olds said that debt was their main financial concern.
It can become a vicious cycle, where people struggle to pay off debts each month whilst trying to get through the month without borrowing more. For those that are able, putting money aside, even if it is just £10 a month, can help when they have a ‘budget blip’; ensuring that they have something tucked aside to help them over the hump.
Regionally, those in the East Midlands worry the least about their pay stretching to the end of the month, with 43 per cent saying that they never worry about running out of money before pay day. The biggest worriers live in Northern Ireland and East Anglia, where more than one in 10 people (12 per cent) say they are concerned about their finances as soon as they are paid.