Money Wellness
Image of a person paying for goods on a card machine
category iconcost of living
calendar icon07 Sep 2023

People spend more than they earn at least two months every year

People spend beyond their means for 2.5 months of the year, with 10% spending more than they can afford for more than half the year, according to a new report carried out by www.topcashback.co.uk

The study by the cashback and voucher site, took an average adult earning £35,000 or less and found they typically live beyond their means for just over two months a year. Surprisingly, high earners – those on a salary of £100,000 or more – spend over their income four months of the year, suggesting they’re dipping into savings to fund their lifestyle.

66% of people TopCashback spoke to said they felt their spending was under control for the following reasons:

  • They kept track of spending throughout the month
  • The conducted research before making purchases
  • They stick to a budget

While a further 24% were concerned about their spending, typically because:

  • Of the rising cost of living
  • They felt cash-strapped  
  • They struggled to stick to a budget – with 25% saying impulse purchases made them feel out of control

The cost of living has got people from all salary brackets worried, with 41% saying they’re anxious, 25% feeling completely overwhelmed and 17% scared by soaring bills and interest rates.

What’s more, the majority believe that cost-of-living pressures won’t improve until January 2024 at the earliest.

Perhaps most surprising, despite the worry and pressures the cost of living has brought, 31% of parents don’t talk to their kids about money. And the majority of those with children over 18 haven’t talked to them about the cost of living (55%).

If they do have conversations about money, 17% have discussed inflation, 15% have talked about debt and 23% about budgeting.

Avatar of Caroline Chell

Caroline Chell

Caroline has worked in financial communications for more than 10 years, writing content on subjects such as pensions, mortgages, loans and credit cards, as well as stockbroking and investment advice.

Related posts

cost of living

14 Jun 2024

Supporting kids’ sporting dreams is a nightmare for hard-up families

Ahead of an exciting summer of sport, we’ve been investigating how financial hardship affects kids’ sporting ambitions.

cost of living

12 Jun 2024

Cost-of-driving crisis could force millions to sell their cars

Rising car expenses are taking a toll on UK drivers, with many saying they will have to sell their cars to stay afloat.

cost of living

10 Jun 2024

Those with the least ‘hardest hit by tax and benefit changes since 2010’

As a new report finds the poorest households have been hit hardest by tax and benefit changes made since 2010, find out what help's available if you're struggling.

cost of living

05 Jun 2024

“All I do is work to live”: full-time worker confronts PM in election debate

A woman told Rishi Sunak during the first general election debate that she’s finding it hard to “make ends meet”. Find out what support you can get if you’re being affected by the cost-of-living crisis.