New research conducted by pension advice specialist, Portafina, has revealed that we are a nation of ‘payday millionaires’ – in other words, we are likely to spend our incomes long before it burns a hole in our pockets! The survey shows that nearly half (43%) of our monthly disposable income is splashed within 24 hours of being paid, and four-fifths (81%) spent within seven days.
Portafina polled a sample of 1,507 UK-based working adults to determine what percentage of our income is ‘disposable’; how much of this available cash is spent within one, seven and 21 days of being paid; and what we are choosing to spend our money on.
With an average of £560 leftover to enjoy each calendar month, many Brits are faced with the tricky decision of whether to spread out their spending evenly (£18 per day) or splash the cash. Rather than taking a trip down Sensible Street, nearly half (43%) of all earners admitted to paying out 13 days-worth (£240) of their leftover wage within just 24 hours of payday. By the last week of the working month, just £67 (or 12% of monthly disposable income) remains.
Spending in numbers:
Earners aged 18-24 were guiltiest of living the ‘payday millionaire’ lifestyle; with a third (33%) spending 40% of their pay in 24 hours, and 51% left with just £50 (or 10% of their disposable income) to live on in the last week of the month.
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