Almost two in five run out of money before payday

New research from Aqua has revealed that almost two in five people (38.8%) typically run out of money before their next payday, while more than a quarter have money left over

28.2% of people have some money left over before their next payday, while 22.8% say their money usually lasts until payday. However, 38.8% find themselves running out of money before they are paid again.

Around one in six (16%) say this happens just a few days before payday, making this the most common point at which people find themselves short of money. A further 11.4% run out within the first week or two of the month, while another 11.4% run out around halfway through the month.

The findings also reveal notable differences between generations. Those aged 35–44 are among the most likely to say they run out of money a few days before payday, at 20.2%. Meanwhile, almost one in six 18–24-year-olds (15.5%) say they run out within the first week or two of the month.

At the other end of the scale, those aged 55 and over are the most likely to have money remaining, with almost a third (32.1%) saying they typically have some left before their next payday.

Almost three in ten (29.7%) don’t save any money during a typical month. Among those who are able to save, the average amount put aside is £152 a month. The amount people can save varies between generations, with 25–34-year-olds saving the most at £202 per month on average. This compares with just £113 among 45–54-year-olds.

There are also significant differences between UK cities. Plymouth ranks first, with residents who save putting aside an average of £189 per month. Manchester follows at £180, while Edinburgh takes third place at £178.

On average, people believe that someone in their circumstances would need an annual income of £49,599 to feel financially comfortable. There are notable differences by age. Those aged 35–44 estimate they need the most, at £59,455 a year, followed by 25–34-year-olds at £58,138.

In comparison, over-55s estimate they need £42,993 a year to live comfortably. Men also believe they need slightly more than women, at £50,971 compared with £48,244.

Scott Yule, Commercial Strategy Director at Aqua, said “Making your money last from one payday to the next can be challenging, particularly when essential costs and everyday spending begin to add up. Our research shows that almost two in five Brits typically run out of money before payday, while nearly three in ten aren’t able to save anything in a typical month.

“There’s no one-size-fits-all approach to managing your finances, but starting with essential monthly costs such as housing, bills, food and transport can help you understand what you have left for more flexible spending. From there, breaking your remaining budget into weekly amounts can make it easier to stay on track, while regularly reviewing bank statements, subscriptions and recurring payments can help identify smaller costs that may be adding up.”

	Total % respondents
I have some money left over before my next payday	28.2%
It usually lasts until my next payday	22.8%
I run out of money a few days before payday	16.0%
I run out of money within the first week or two of the month	11.4%
I run out of money around halfway through the month	11.4%