One in seven Britons is living beyond their means ­– survey

One in seven Britons is living beyond their means, regularly spending more than they have coming in, a survey indicated yesterday.

Around 14 per cent of people admitted they often overspent, with a further 10% saying they had no idea how much they spent each month in relation to their earnings, according to insurer Bright Grey.

The research found that the average person thought they needed to earn £1,700 a month after tax in order to have a comfortable lifestyle, but this was 27 per cent more than those questioned typically earned each month.

As a result, people are facing an annual shortfall of £4,320 between the amount they have coming in and the sum they would like to spend.

People typically spend £326 a month on eating out, leisure activities and holidays – more than a quarter of their post-tax income.

Eight out of 10 people said they had not changed their spending habits during the past 12 months, despite the economic downturn, with six per cent saying they had increased the amount they spent.

Nearly a third of people said their spending habits were putting a strain on their household finances, while a fifth admitted that they used credit cards and loans to fund the lifestyle they wanted, with 16% dipping into their overdraft.

Around 30 per cent of people claimed they could not help overspending, with 21 per cent saying they enjoyed their lifestyle too much to give it up.

But 15 per cent said they overspent because they were hopeless with money and 11 per cent said they wanted to keep up with their high earning friends.

Roger Edwards, proposition director at Bright Grey, said: “Even in an age of austerity, the public’s spending shows no sign of waning, as the average UK adult continues to spend beyond their means and rack up debt.

“Worryingly, this is mainly due to the average salary being far short of that needed to lead a comfortable life and those who just can’t help but spend either to fund their lifestyle or just to make ends meet.”