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.