5th September 2014
The days following payday see Britons living like kings, spending an average of £240 in just 24 hours, but we spend the rest of the month regretting it.
One in three people surveyed by cashback site Quidco said the novelty of their salary hitting their bank account means they go all out to treat themselves and spend almost a fifth of their wages within 24 hours of getting their salary. Money is frittered on clothes, meals and booze for an average of four days before the novelty wears off and reality kicks in, meaning a return to normal spending habits.
Women are most likely to spend, with 48% believing pay day has a ‘novelty value’ but they also show the most remorse, with 55% feeling guilty about overspending too early in the month.
Younger people at the start of their careers are also more prone to buyers’ remorse, with 69% of 18 to 24 year olds admitting to regretting rash spending later in the month.
These rash spending habits mean many Britons are living pay cheque to pay cheque and women are again the biggest offenders. A quarter of woman said they are ‘spent out by the end of the month’ compared to 18% of men. A total of 37% of women start to feel the pinch within the first seven days of receiving their salary and 30% of women find themselves counting down to the next pay cheque.
Despite the bad habits, the nation is full of good intentions and 71% said they try and save money from their wages but of this figure over a quarter, 29%, said they frequently have to take it back out again to help them at the end of the month and 15% intend to save but haven’t got round to it.
Unfortunately, it is not low salaries pushing Britons to the edge, it’s their spending habits as 60% admitted that a pay rise wouldn’t necessarily affect how much they had at the end of the money and 20% said they would probably spend more if to absorb extra payments.
The key to making your money go further is careful budgeting but 12% of those polled said they try to budget to make their money last every month but it rarely works and 15% don’t even bother trying to budget. Andy Oldham, managing director of Quidco, said:
‘When you work hard, it’s reasonable to feel entitled to having a little bit of what you like at the end of the month when your salary comes through, as long as you don’t allow common sense to go out the window leaving you on a strict budget when the payday euphoria wears off.
‘A common mistake is deploying money saving tactics at the end of the month, when your bank account is dwindling, consistently keeping an eye on your spending can help make sure you are able to maintain the lifestyle you want throughout the month, not just in the magic few days post-pay day.’