The average British adult has just ยฃ276 of disposable income each month – less than ยฃ10 a day, a study has found.
A poll of 2,000 adults revealed that after paying out for their rent and mortgage, utility bills, food and other living expenses, just a small amount of โspareโ cash is left over for the lighter things in life. Of those polled, 45 per cent even claim to often have months with absolutely no disposable income whatsoever. And more than four in 10 feel like they are never going to be earning enough money to give them a decent amount of spare cash.
It also emerged that for those who do have some money left at the end of their month, eating out is the most popular way to spend it, followed by putting some away towards a holiday and new clothes.
Asesh Sarkar, CEO and co-founder at benefits provider Salary Finance, said: โFor many, the main reason for going to work is to earn a living. But while we want to be able to pay the bills, it would be nice to have at least a little bit left over to spend on some of the lighter things in life.
โUnfortunately, it seems for many, there is just not enough money to go around and they are left with very little spare cash after paying out for all of the essentials.
โThis can lead to feelings of stress and even depression concerning financial wellbeing, which can impact people both personally and professionally.โ
Researchers found the rent or mortgage takes up the biggest chunk of cash from the average monthly income of ยฃ1,812, while food and drink accounts for just over ยฃ222 per person each month. Utility bills take another ยฃ188 a month, while TV, internet and phone costs add another ยฃ61 to the total monthly expenditure. Other direct debits, credit card and loan repayments and even the cost of commuting also adds up over the course of a month.
As a result, the average adult estimates they spend just ยฃ201 a month on items they would describe as โluxuriesโ. Eating out accounts for around ยฃ61 a month, with another ยฃ72 spent on going out with friends and socialising. Almost ยฃ40 a month is also splashed out on sports and hobbies.
For parents, they have even less spare cash with the average mum and dad saying their monthly disposable income dropped by ยฃ231 after having children.
They also face extra monthly bills, including childcare costs of almost ยฃ46 and school-related expenses amounting to more than ยฃ50 a month.
It also emerged more than one in 20 would describe their financial situation as โpoorโ, while another 33 per cent say they โjust about make ends meetโ. And 41 per cent admitted to feeling envious of friends, relatives and colleagues who seemingly have more disposable income than they do.
But while 49 per cent of people set a budget to try and make their money last the month, 22 per cent usually fail to stay within their limits, going an average of ยฃ122 over budget each month.
More than three in 10 of those polled via OnePoll also admit they would have more money and disposable income if they were better at budgeting and managing their money.
Asesh added: โMoney worries affect 40 per cent of UK employees, and our extensive research within this sector shows that this is not linked to salary amount as you may expect.
“In fact, financial wellbeing is related more to saving, spending and borrowing habits, meaning those that do manage to save some money each month feel happier and are less stressed by their financial situation.
โOf course, we know a lack of disposable income, among other things, can make saving hard to spend, including barriers such as time.
“That is why salary linked saving can be beneficial to many, as money is directed straight into a savings account meaning it is not โmissedโ and there is no time spent popping this money into a savings account.
โThis helps people feel happier knowing that they have this money for any emergencies โ or treat themselves on a rainy day.โ
