More than half of Australians are running out of money before their next payday, a new survey has revealed.
Data from comparison website Finder showed 52 per cent of people “occasionally or always” had spent their pay before their next salary instalment arrived.
And 16 per cent said they ran out of money every month, by an average of $249.
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That works out to an average monthly cash shortage of $678 million around the country.
Women were almost twice as likely as men to always run out, at 20 per cent to 11 per cent.
Of those Australians who do struggle to stretch their income, 69 per cent said the main pressure came from the soaring cost of living, while 40 per cent attributed it – alone or in combination – to unexpected expenses.
Overspending early in their pay cycle, the absence of an emergency fund, and debt repayments, were also cited as reasons, at 20 per cent each.
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And 15 per cent said they were poor money managers.
Finder consumer research head Graham Cooke said life had become unaffordable for many.
“It’s very grim for households right now as many completely run out of money between paychecks,” he said.
“The soaring cost of living has run bank accounts dry.”
Cooke said struggling households would be turning to debt to cover expenses.
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“It’s a very stressful situation for those households whose expenses exceed their earnings every month,” he said.
“And when it happens, people turn to extreme measures like skipping meals to prolong their cash reserves.
“Many Australians have no choice but to turn to plastic when they run short of savings which only compounds the problem.”
He urged people to take steps to try to increase their income and reduce their expenses.
“You don’t get what you don’t request, so it never hurts to ask for a pay rise. Many Aussies are working side hustles or working at the weekend to boost their income,” he said.
“Meanwhile, cancel any subscriptions you aren’t using. You could go interest only on your home loan and increase your excesses on all your insurances to start to ease cash flow shortages.”
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