24pc of Brits do not save money each month

Almost a quarter of Brits (24 per cent) do not put any of their wages into their savings each month, research has found.

A survey of 2,000 people commissioned by debt management company Lowell has found Plymouth and Birmingham save the least out of all the UK cities, with 34 per cent of their residents saying that they never contribute to their savings following payday.

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This was followed by Sheffield (31 per cent), Norwich (29 per cent) and Glasgow (29 per cent).

Of all the UK cities, London and Leeds rank highest when it comes to savings, with the average resident contributing 22 per cent of their wage each month.

Newcastle is the best city for budgeting, with 40 per cent of its inhabitants never dipping into their savings following payday.

The survey revealed one in 10 UK workers are spending up to 60 per cent of their wages within the first week of receiving it and a typical Brit saves 19 per cent of their wages each month. This equates to £5,977.59 a year from the average annual salary of £31,461.

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“Unfortunately, this research confirms that many people across the UK are caught in the trap of living from payday to payday, but this can be a slippery slope into unmanageable debt if your circumstances were to change unexpectedly,” said John Pears, UK chief executive of Lowell.

“If you’re struggling to keep track of where your money is going each month, try to set some time aside to tot up all your outgoings and build a clearer picture of your expenses.

“Once you know this, plan ahead by creating a realistic monthly budget that you know you can afford. Sticking to this is a great way to help get your finances back under control and avoid accidental over-spending.

“There are some great budget-planning tools available online if you’d like some help getting started.”