The gap between December and January payday is a notoriously long one, with nearly two in five (37%) expected to completely run out of money before payday arrives
The stretch between December and January paydays is notoriously long, with nearly two in five (37%) expected to completely run out of money before payday arrives.
New research from Nationwide, the UK’s largest building society, reveals that 40% have already exhausted their funds while waiting for their January salary – with six million expected to be penniless by the end of the month.
Shockingly, over one in 10 (14%) confessed they’d already run out of money by January 11, barely halfway through the month. Millennials and Gen Z are feeling the squeeze the most, with almost half (48%) expecting to be broke before the month’s end.
On average, just over a quarter (26%) of Brits agreed that managing their finances during January made them feel anxious and stressed, compared to other months where the stretch between paydays is less severe. This increased to just over a third (35%) for those aged 25-44.
To save some cash and make the long month more bearable, savvy Brits are altering their daily routines while they wait for money to hit their accounts.
The top changes include: Cooking at home (36%), avoiding or cutting down on eating out and getting takeaways (35%), skipping shopping – covering everything from clothes and beauty products to new games and personal treats (33%), stopping or reducing purchases of takeaway coffees and convenience foods (27%), and curbing visits to the pub (26%).
For many, cutting back on socialising and non-essential spending has become the solution to saving money. According to a recent survey, nearly 20% of respondents admit to cancelling social plans to save some cash, while 11% have chosen to participate in Dry January to avoid excessive spending.
Nationwide’s money expert Bola Sol shares some valuable insights for effective financial management and budgeting. “A monthly budget is your financial compass,” they said.
“With December to January stretching paydays to the limit, knowing where every pound is going is vital. Whether you’re saving for a big event like a wedding, a hen-do, or that dream purchase, consistency is the flex that’ll get you there.”
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