One in ten Brits end the month with £0 in their bank account, new research has found.
Brits are struggling to navigate the monthly payday cycle and put money aside, with the rising cost of groceries (43 percent), bills (38 percent) and stagnating salaries (24 percent) representing the three biggest financial barriers to saving money.
As a result, only a third of Brits (32 percent) are left with money to put away for a rainy day.
The research from financial wellbeing membership RiseUp’s latest report found that 40 percent of the 2,000 surveyed felt positive about their financial situation immediately after getting paid.
This figure dropped by a staggering 20 percent just a week out from payday as the financial afterglow wore off. This fluctuating financial security has a huge impact on people’s lives, with financial stress affecting mental health (56 percent), eating habits (41 percent), relationships (33 percent), work performance (25 percent) and friendships (21 percent).
For young people in particular, not saving for the end of the month can cause them to feel frustrated, with 23 percent of 16-24-year-olds feeling embarrassed about not saving at the end of the month, compared to just 8 percent of 45-54-year-olds.
Younger age groups also feel more pressure to save more than older generations with only 23 percent of those ages 55 feeling frustrated with themselves if they don’t manage to save and 52 percent of those aged 16-24 feeling the same.
Residents in Brighton (22 percent), Belfast (12 percent), and Glasgow (12 percent) are the most likely to have £0 left at the end of each month, with just 8 percent of Londoners and just 5 percent of Cardiff locals ending the month with £0.
Commenting on the research findings, Vicky Reynal, Financial Psychotherapist, said, “Feeling confident and in control of our finances is important for our mental and physical health and our relationships too.
“Yet for many people in the UK, these are challenging times: economic pressures are putting a strain on finances so much so that an increasing number of people are facing the threat of poverty.
“Money is linked to our survival, so its lack – or the threat of its lack – evokes very primal fears in us. Despite the challenges, there are opportunities to address the factors that help improve financial wellbeing: supporting people through financial education, giving them tools to build financial resilience and breaking the money taboo.”
Yuval Samet, CEO and Co-Founder of RiseUp, said: “We are living in a challenging financial environment and cannot escape the pressures of the cost of living, which has an impact both on our bank balance and wellbeing.
“These findings affirm the need for better financial knowledge to curb the payday anxieties which are clearly creeping in for people.
“By learning more about your cash flow, it becomes very clear what your disposable income is, helping you understand what you can afford to put away.
“This paired with an open dialogue about money with friends and family will help transform our relationship with money for the best.”
