Are you guilty of payday binging?

victoria worrell

20th December 2016

We’ve all been culprits of feeling like multi-millionaires when payday hits. Sadly, after we’ve been on a serial spending splurge we quickly realise that our bank accounts are looking a little sparse and we turn into the thriftiest of shoppers.

Research conducted by Paymentsense last month found that within the first 72 hours of being paid a quarter of UK workers spend 25% of their month’s wages – and the majority is spent on unnecessary purchases.
Half of the 2,000 respondents attributed the majority of their income to food, particularly wining and dining in the first two weeks but becoming more frugal as the month continues. A third of us transform into party animals the weekend of payday, but quickly becoming less sociable in the weekends that follow.

Interestingly the survey showed some interesting gender and age behaviours. Over half of women admitted to unnecessary spending compared to 38% of men and double the amount of women to men slip into their overdraft every month. The 5p bags are probably not helping either!

The higher the salary the less we seem to spend too. Workers with a monthly wage of over £1,500 do not tend to spend over £10 within the first 72 hours, however those with the lowest amount of income spend 22% of it within the very same timeframe!

Age is also a factor when it comes to a payday binge. The youngest workers admit to spending nearly a quarter of their wage over a payday weekend and some respondents have an online shopping basket ready to purchase as soon as they get paid. Does that mean with age comes wisdom with spending? No. Over a 25% of 45 – 54 year olds look to their credit cards to support them throughout the month.

We appear to be a nation that never learns from impulse purchasing as soon as we see our accounts replenished. But where would be the fun in life if we didn’t spend what we worked hard for?!