Thank the lord: it’s payday. With your bank account filling up (albeit momentarily) with some hard-earned cash, we stumbled across an infographic from payday loan provider Wizzcash that looks at what Britons do with their much-needed paychecks.
The infographic, which pulls in exclusive data from a poll of nearly 1,000 people, shines a light on the peaks and troughs of consumers’ monthly spending patterns, showing that for many people, life on the breadline is a very real reality.
It reveals that:
- Many Britons struggle to make their wage last all month, with 34% of people running out of money completely before their next payday.
- Perhaps unsurprisingly, older people – or those aged 65 and over – make their money last all month.
- Debt is a real problem for many: a significant 31% of people have fallen into debt following a payday spending splurge.
- Saving money is important, but it’s difficult: nearly half (46%) of Brits struggle to save more than £100 a month.
- Lots of people rely on credit to cover monthly costs, with credit cards, overdrafts and the bank of mum and dad, as well as personal and payday loans, all being common sources of credit.
Hilton Freund, managing director of Wizzcash, said it was clear high living costs were having an impact. “Research shows the cost of essentials is rising – this is a particular problem for low-income households.
“With costs rising, it’s crucial households keep an eye on their spending and put plans in place to stop them going into debt. Drawing up a budget plan and taking financial advice are both good ways to stay financially afloat.”
3 tips to help you budget
If you’ve read the Wizzcash research and it’s sounding like a familiar story, you might want to take a fresh look at your finances. We’ve drawn up 3 easy ways you can start budgeting, keeping an eye on your money and saving some cash in the process.
Take stock of everything
Start by working out how much you’ve got coming in and how much you’ve got going out. Expenses will be things like:
- Household bills
- Mortgage or rent
- Going out
Using a simple spreadsheet or piece of paper, write it all down and work out how much you’re spending versus what you’ve got coming in.
Get rid of non-essentials
If you’re over-spending, start saving by striking-out any non-essential areas of spending. These could include:
- A streaming service you don’t use.
- That gym membership you’ve been ignoring.
- Making your lunch in advance rather than buying it.
Set a savings goal
It’s good to have something to look forward to, right? Motivate yourself to take charge of your finances by setting a savings goal – this could be a:
- New clothes
- Night out
What do you do with your monthly wage? Do you have any budgeting tips? Let us know.