Why Your Salary Runs Out Before The End Of The Month

The issue of salaries running out before the end of the month is no longer just a problem of individual mismanagement or overconsumption. It reflects deeper structural economic pressures where the rising cost of living intersects with radical changes in modern spending patterns. With increasing expenses for food, housing, energy, transportation, and healthcare, many families find themselves with a very narrow financial margin. This leaves little room for savings or even covering basic unexpected expenses.

Statistical data on household spending reveals a clear disparity between Arab countries. However, they all converge on the burden of essential expenses within their budgets. In Morocco, the National Survey on Household Living Standards for 2022 and 2023 showed that the average monthly household income was around 7431 dirhams, compared to an average expenditure of approximately 6976 dirhams. Food, housing, and energy costs accounted for 63.6% of the consumption budget. Other data from the High Commission for Planning indicates that basic expenses make up, on average, 81.8% of Moroccan household expenditures.

The Saudi experience provides a comparable indicator of different income levels within the region. The results of the Household Income and Expenditure Survey for 2023, issued by the General Authority for Statistics, showed that the average disposable income for a family was 11,839 riyals per month, compared to an average consumption expenditure of 10,884 riyals. The necessities of food and beverages accounted for 27.9%, and housing and energy for 14.1%. In the national accounts for 2024, final household consumption expenditures reached approximately 2.136 trillion riyals, led by food at 21.1%, followed by housing at 17.7%, and then transportation at 14.3%.

In Tunisia, the National Survey on Household Living Standards for 2021 revealed that the average annual expenditure per capita was 5468 dinars, compared to 3871 dinars in 2015. This represents a nominal increase of 41.3%, but a near stagnation in real terms at constant prices. The share of food in household expenditure rose from 28.9% to 30.1%, reaching nearly 35% among the lowest-spending households. This highlights a clear social disparity where the per capita expenditure of the most affluent group exceeds that of the least affluent by about six times.

Economic experts analyze these statistics, indicating that rising inflation has a lasting impact on price levels and purchasing power. Dr. Zakaria Firano, an economics professor at Mohammed V University in Rabat, notes that a one-point increase in inflation leaves a cumulative effect on price levels of 1.58% after three years and 1.48% after five years. This means that a decline in the inflation rate does not automatically restore prices to their previous levels or recover lost purchasing power.

The issue is not limited to individual behavior but requires institutional and regulatory intervention to structure digital payment services. Experts like Dr. Mohammed Jadri, a Moroccan economic and financial expert, emphasize that the depletion of salaries reflects a structural imbalance between income growth and the rising cost of living, particularly for low- and middle-income groups. He suggests five key indicators to measure the severity of the crisis: the evolution of real wages, the share of basic expenses, the level of household indebtedness, residual income, and savings rates.

Finally, addressing this issue involves both individual financial management strategies and broader economic policies. Experts propose flexible budgeting rules and stress the importance of distinguishing between rationalizing expenses and economizing. They also suggest automating savings, revising digital subscriptions, and adopting a waiting period before making non-essential electronic purchases. These measures aim to help individuals manage their finances better and cope with the economic pressures that lead to salaries running out before the end of the month.

Key points

• The rising cost of living and changing consumption patterns are major factors contributing to the issue of salaries running out before the end of the month.
• Statistical data shows a significant disparity in household spending between Arab countries, with essential expenses making up a large portion of budgets.
• Experts propose various strategies for managing finances, including flexible budgeting, automating savings, and revising digital subscriptions.