Struggling to budget

Millions of British adults are living ‘hand to mouth' and are ‘broke' by the end of the month, it was revealed today.

Researchers found 46 per cent of people find their wages don't stretch far enough and face the prospect of having spent their earnings before the next pay day.
 
A quarter will find themselves dipping into overdrafts, while 19 per cent will borrow money from family or friends to pay housing costs or unexpected bills.
 
And the harsh reality is that 45 per cent of people firmly believe they'll still be working until they drop.
 
Kathryn McLaughlin for Engage Mutual, which conducted the study of 2,000 adults said: "Over the last few years we have seen an increase in the cost of living however, many have not received a rise in salary to match. With this in mind it's no surprise people are struggling to save meaningful amounts of money, and find themselves short of cash by the end of the month.
 
"Although these issues affect a cross section of society it does seem that the older we get the better we are at looking after our money."
 
The research indicates that 45 per cent of adults living in Britain don't yet have a pension plan in place.
 
Two thirds of adults don't have a will to ensure their personal affairs are taken care of in the eventuality of their death.
 
And although six in 10 people do save money regularly, for 62 per cent it would last less than six months should they lose their job.
 
A significant number of people under the age of 35 would think nothing of going on wild nights out or on spending sprees they can't really afford.
 
The study shows that of all the age categories polled those aged 18 to 24 acknowledge they are more likely go on spending sprees they can't afford and face the prospect of being unable to pay unexpected bills.
 
Most people 55 and over think of themselves as being better at managing money and are more likely to have a savings account in place however, some still find themselves living on the breadline much of the time.
 
A third don't have a pension and 35 per cent haven't written a will.
 
Indeed many people within this age category worry they couldn't survive for more than eight months on the money they have put by if were out of work.
 
A fifth have unpaid credit card debt at the end of each month, and four in 10 still aren't in a position where they could retire.
 
While a third of those aged 54 and under are still hoping they can retire by the age of 60, for many of those nearing that age, it is not looking likely.
 
Kathryn McLaughlin for Engage Mutual continues: "With many struggling with day-to-day expenses, retirement planning is often left to the last minute meaning that many of us are facing the prospect of working later in life in order to maintain a satisfactory standard of living.
 
"Times are tough, and putting something by invariably involves sacrifice, but saving little and often can make a difference over the long term."