Four in 10 people have less than £6.60 per day left to spend on themselves after forking out for essential bills according to shock new findings by Nationwide Building Society.
This is just enough for a meal deal, coffee and chocolate bar, the building society said in its quarterly spending report.
The spending squeeze comes Britons typically spend around £87.80 MORE per month on essentials than they were a year ago.
And the research reveals that more than two thirds of the 2,000 surveyed believe it’s harder to survive each month financially now than it was five years ago.
Many are responding to the rising cost of living by reducing what they spend.
However, money is so tight for nearly a third (30%) that they have missed vital payments in the past year – with utility bills, rent and insurance the most likely payments to be skipped.
Guy Simmonds, Nationwide’s head of customer management for current accounts, said: “Finances are clearly under some pressure.
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“Despite the reality that money is tight for some, there are encouraging signs that people are taking the right steps by cutting back on non-essential spending and finding ways to make their money go further.”
But around a quarter (26%) are regularly spending more than they earn, overshooting their bank balances by £101.84 a month on average – or a massive £1,222.08 per year.
The areas LEAST likely to be reduced include Wi-Fi usage (just 5% would cut back), club memberships (10%), smoking (12%), gym membership (14%) and buying healthy food (15%).
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