High earners are UK's worst overspenders

High earners are the nation's worst culprits for spending more than they earn, according to a survey from Derbyshire Building Society. Over 60% of UK adults earning over £50,000 splash out more than their monthly take home pay. The figures show that 35% of those on the highest incomes of over £70,000 are overspending by as much as £2,000 per month.

In sharp contrast, a massive 84% of those on annual salaries of £15,000 - £20,000 managed to save some of their income each month. And just over half 50.4% of those on low incomes of £10,000 or less a year break even at the end of each month. Worryingly, 18% of all adults have no idea whether or not they have overspent.

Over 34% of those questioned by The Derbyshire said they did not have a savings account, whilst a staggering 60% were not benefiting from a tax free Individual Savings Account ISA. Only 11% of homeowners surveyed have already paid off their mortgage and incredibly just 25% have a personal pension for when they retire.

Mark Blackwell, Derbyshire Building Societys Marketing Director, said, "This research demonstrates that no matter how much we earn, we need to keep a close rein on our finances. Overspending is spiralling many people into debt in what is becoming a 'live for today, pay up tomorrow' culture. People need to take control of their finances now and start planning for a safe and secure financial future.

"It's how you control your cash that counts. As the stark facts of this research shows, many higher wage earners are following the mantra of 'spend, spend spend'. They are living well today but are heading for a bleak retirement and will have nothing to show for all their hard years of working if they don't curb their overspending now.

"It's paramount that people take responsibility for their own finances - almost one in five adults had no idea how much they had overspent each month. Budgeting and tracking your expenses gives you a strong sense of where your money goes and can help you reach your financial goals, whether they are saving for a deposit on a house, providing for a childs education, or planning for retirement. Building a safety net is also essential to ensure that you are protected in the case of a financial emergency."

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2006-10-11 14:54:53 © Moneyextra.com