Fake it til you make it: 1 in 3 spend more than they earn each month
A significant number of people are running a monthly deficit, according to new research by Finder.
A Finder survey of 1,013 respondents revealed 1 in 3 (33%) Australians – equivalent to 6.9 million people – often or always spend more than they earn after tax each month.
The research found 12% admit to spending more than they earn often, while 6% admit to spending more than they earn almost always.
Occasional overspending is also common, with 15% admitting they spend more than they earn a few times annually.
Graham Cooke, head of consumer research at Finder, said living beyond your means is a slippery slope.
"It leaves you vulnerable to unexpected financial emergencies, such as job loss or medical expenses.
"But with the rising cost of living putting significant strain on Australian households, many have been forced to spend more than they earn to keep afloat."
Gen Z and gen Y were more likely to admit to spending more than they earn (38%), compared to gen X (33%) and baby boomers (20%).
Cooke said it's also really easy to fall into the trap of lifestyle creep.
"Lifestyle creep is that sneaky thing that happens when your spending gradually increases as your income rises.
"It's when those little luxuries you once only dreamed of slowly become your new normal – maybe it's eating out more often, upgrading your car, or subscribing to more streaming services.
"You might not even notice it happening until you realise you're earning more but not saving any extra, or even worse, you're living paycheck to paycheck despite the higher income."
Cooke said building your wealth means more than just earning a good income.
"It's about being smart with your money by saving, spending wisely, and making good choices about where your money goes.
"Once you know what's coming in and going out, you can see where you can save a bit.
"Even putting away a small amount regularly can really add up over time."
The research reveals nearly 1 in 4 (24%) report having overspent their income once or twice.
Do you spend more than you earn (after tax) each month?
| Yes, a few times a year | 15% |
|---|---|
| Yes, often | 12% |
| Yes, almost always | 6% |
| No, but I have done this once or twice | 24% |
| No, never | 43% |
| Source: Finder survey of 1,013 respondents, March 2025 |  |
Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 1,013 respondents from March 2025.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics.
- The survey has been running monthly since May 2019.
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