More than half of Australians run out of money before payday, ‘bleak’ survey finds

A bleak survey has found that most Australians regularly spend all their money before their next paycheck as living costs rise.

A Finder survey of 1,049 people found that 52 percent sometimes or always ran out of money before paychecks.

About 16 percent of respondents admitted to running out of money each month, with women more likely to plunder their bank accounts than men.

According to the comparison site’s research, the average of those who spent more than they earned fell short by $249 each month.

Graham Cooke, head of consumer research at Finder, said the financial reality for a growing number of households is “very bleak”.

“The rising cost of living is emptying bank accounts,” he said.

‘It is a very stressful situation for households where expenses exceed income every month.

‘And when that happens, people resort to extreme measures, like skipping meals, to stretch their financial reserves.’

Majority of Australians run out of money before their next paycheck, ‘bleak’ survey finds (stock image)

Cost of living pressures were cited by 69 percent of respondents as the biggest issue they face, while 20 percent admitted to overspending in the first few weeks of each month.

About 15 percent admitted to mismanaging their money.

Mr Cook said Australians should feel justified in asking for a pay rise if they were struggling to make ends meet, and should cut as much unnecessary spending as possible.

“Many Australians have part-time jobs or work weekends to supplement their income,” he said.

‘In the meantime, cancel any subscriptions you don’t use. You can just take the interest on your mortgage and increase your deductible on all your insurance policies to help alleviate the cash flow shortfall.’