Half of Britons have already spent their December wages despite there being more than two weeks until most receive their next pay cheque, figures show.
While 50 per cent say they have already used last months’ salary, as many as 66 per cent said their next salary payment ‘can’t come soon enough’ according to data from Virgin Media.
Spending often spikes during the Christmas period, as people pay for gifts, expensive food, alcohol, and entertainment.
Spending jumps by 29 per cent on average during the festive weeks, with households spending £713 more during December than typical months, Bank of England data suggests.
Virgin Media says the average person spends £315 on going out in December, with one in four spending more than £500 socialising with friends.
However, all this spending means plenty of people misjudge the amount of money they will spend during this time.
Spending often spikes during the Christmas period, as people pay for gifts, expensive food and alcohol, and entertainment
Data from West Brom Building Society indicates that more than half of people, some 57 per cent, underestimate the extent of their festive spending, meaning that they will likely find themselves short of cash in the New year.
It also means that many are choosing to tighten their purse strings, with Britons choosing to put away £230 more in January than they do in a typical month. One in five plan to save an extra £400.
As many as a quarter say they will cancel social plans and choose to stay at home watching their favourite tv show in order to reduce their spending.
Virgin Media said half of people say they would choose to spend money on streaming services over spending on going out, while 35 per cent say they want to avoid alcohol.
In comparison, just 24 per cent are planning to pick up a new hobby, as Britons instead choose to lower their costs.
How you can make it to pay day
Not all plans are avoidable, and in the dark of winter some social plans are a welcome treat for your wellbeing but not your bank account.
Following the turn of the new year, a many will have chosen to get their finances in order – some 49 per cent according to Virgin Media – but with many still waiting two weeks to receive their next pay packet, this can be easier said than done.
If your bank account is drying up, and you still have weeks until you are paid, here’s what you need to do to make it through to payday in the green.
Budget – Debt charity Stepchange recommends setting out a budget, listing all of your expected incomings and outgoings until your payday.
You can use online budgeting tools, such as This is Money’s budget calculator, to help you to do this.
Doing so allows you to prepare for any big costs that are coming up, as well as work out where you can make cuts.
Reduce spending – Any spending that you can afford to cut could help to see the month through.
For example, pausing monthly subscriptions, such as for Netflix or a gym membership, could mean that you avoid losing valuable cash and only miss out on a few weeks of the service.
Downgrading your mobile plan – or any other tiered subscriptions – could free up extra cash.
The same goes for other non-essential spending.
Consider choosing cheaper alternatives to the usual products you buy, avoid impulse buys and cut out takeaways.
Likewise, you can also replace the usual places you shop with cheaper options, such as picking budget supermarkets like Aldi and Lidl over more expensive alternatives.
Make the most of what you have: When it comes to the weekly shop, try to incorporate food and groceries that you already have at home.
Boost your income – Even when your outgoings have been stripped back, you might find that you are still set to fall short by the end of the month.
Consider selling unwanted items online via platforms like Facebook Marketplace and Gumtree. Often, buyers will pick items up the same day and pay in cash.
Meanwhile, make the most of any discount and cashback websites that you have access to. Some employers offer discount and cashback schemes as part of their benefits packages.
Supermarket rewards apps like Tesco’s Clubcard and Sainsbury’s Nectar offer vouchers once you collect certain numbers of points through everyday spending.
You may have already accrued enough points to give you access to vouchers that could cut down your grocery bill without even realising.
You might also be entitled to Government support without realising it. Check whether you should be receiving money, such as Child benefit payments.
Stepchange’s benefits calculator can help you work out if you are entitled to payments.