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.
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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.
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The research found 12% admit to spending more than they earn often, while 6% admit to spending more than they earn almost always.
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Occasional overspending is also common, with 15% admitting they spend more than they earn a few times annually.
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Graham Cooke, head of consumer research at Finder, said living beyond your means is a slippery slope.
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"It leaves you vulnerable to unexpected financial emergencies, such as job loss or medical expenses.
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"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."
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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%).
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Cooke said it's also really easy to fall into the trap of lifestyle creep.
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"Lifestyle creep is that sneaky thing that happens when your spending gradually increases as your income rises.
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"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.
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"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."
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Cooke said building your wealth means more than just earning a good income.
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"It's about being smart with your money by saving, spending wisely, and making good choices about where your money goes.
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"Once you know what's coming in and going out, you can see where you can save a bit.
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"Even putting away a small amount regularly can really add up over time."
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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 |  |
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Sources
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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