Over 16 million Britons have nothing left from their monthly salary

One in three (33%) of us are spending more than our salary or just about managing to break even each month, according to Bright Grey's Financial Safety Net report.

The study found that over 11 million British adults (23%) just about match their outgoings to their net monthly salary, with nothing leftover at the end of the month.  Worryingly, 4.9 million (10%) said that they spend more than their salary on a regular basis.

Roger Edwards, proposition director at Bright Grey, said: "There is no doubt that 2012 is going to be a tough year for consumers, and the fact that a third of people currently have no money left at the end of the month is a worryingly fragile situation to be in. At a time when money is so tight, consumers should really think about their outgoings, how they can support themselves and their families in the best way, and protect themselves against any future financial difficulties; as times may get worse."

Our study found that the average Briton spends £1,315 a month, but only spending £30 on protection insurance products that could be vital to their finances in the future.  This compares to £56 on telephone bills and a huge £232 on supermarket and other shopping.

In terms of large ‘one-off' products and services, adults in Britain spend an average of £885 on holidays a year; £214 on big ticket electrical goods such as TVs, cameras and iPods over the same period; and £151 on white goods such as fridges and freezers.

Roger Edwards added: "It is a false economy to believe that just spending on the here and now is going to keep Britons in good stead. By cutting back slightly on some of their outgoings, most adults should be able to find a small amount of money to help provide the ‘financial safety net' they may need in an emergency situation. For just a few pounds extra a month, consumers can safeguard their financial future by investing in a protection product that will provide for themselves and their family should they lose their job or their health, for example."