Payday can take an age to come for some with the temptation to waste money once it ends up in the bank account.
In this sense, financial experts Money wise analyzed the UK’s spending habits to uncover the top 10 payday spending stats to educate the UK on the importance of saving and help tackle this payday spill.
Top 10 Payday Spending Statistics
- Belfast spends most of its time on payday
- 43% of our disposable income is spent within 24 hours of payday
- 92% of Britons regularly make impulse purchases that they later regret
- 60% of Britons have less than £ 100 before payday
- Big grocery stores are our biggest payday
- 52% of Britons are forced to raise extra cash every month to keep them going through payday
- Paying off debts is the largest payday expense for one in three British people
- 23% of Britons spend half of their income on payday
- 32% of UK shoppers double their payday spend
- 25 to 34 year olds are most likely to use payday loans and short term installment borrowers
Portafina analyzed the top ten cities for payday millionaires (based on the largest number of people who spent 50% or more of their disposable income within 24 hours of being paid). Belfast leads the way with 27%.
- Belfast (27%)
- Liverpool (20%)
- Dublin (16.7%)
- Birmingham (16%)
- London (14.9%)
- Manchester (14.8%)
- Edinburgh (14%)
- Newcastle (13%)
- Bristol (12.2%)
Portafina’s survey shows that 43% of our monthly disposable income is spent within 24 hours of payday and 81% within seven days.
According to a study of 4,000 UK shoppers by Nationwide, 92% of Brits who said they made regular impulse purchases later regretted their spending decisions.
In fact, they found that 22% of Britons said more than half of their pocket money, excluding bills and essentials, was gone within the first two days of receiving payment.
60% of Britons have less than £ 100 in their accounts in the week leading up to payday and 15% have no money at the end of the month.
The most popular payday splurges according to Nationwide are:
- Grocery stores larger than usual (27%)
- Getting a takeaway (24%)
- Buying new clothes (20%) Eating out in a restaurant (16%)
- Go to the pub (12%)
KPMG found that 52% of people in the UK are forced to raise extra cash to keep them going through the next payday. 21% turn to credit cards, 13% overdrafts and 12% loans from their partner.
We have all fallen victim to payday glory, but if this habit occurs too often it can adversely affect your finances. KPMG found that 23% of people spend 50% of their income on payday.
While the largest luxury payday expense was identified as grocery shopping, an analysis by KPMG found that credit card and debt repayment represents the largest payday expense for 1: 3.
A study by Post Office Money found that 32% of people double their discretionary spending the day they get their hands on their pay. They also found that shoppers make an average of two unplanned purchases per week.
The FCA found that 37% of payday borrowers and 29% of short-term installment borrowers are between 25 and 34 years old.
- Do not be tempted. Sign up for a savings program.
- Track your spending to save more and spend less.
- Set aside savings as soon as they get paid.
- Save 10% of your income every month.
- Try the 365 Day Money Saving Challenge. Save a little every day – £ 1 on a Monday, £ 2 on a Tuesday and up to £ 7 on a Sunday. Then start everything again in the next week. You can save £ 28 per week which translates to a savings of £ 1,456 by the end of the year.
- Buy in bulk whenever possible to save costs in the long run.