Bright Grey has urged Britons to cut back on spending to help stabilise their finances and provide enough to secure a safety net for emergencies.
The call came as research from the provider estimated that 16 million are left with nothing from their pay cheque and many are slipping into debt.
Its Financial Safety Net report found that on average Brits spend £1,315 a month with 33% of those surveyed spending more than their salary or just about managing to break even.
Almost a quarter (23%) just about match their outgoings to their net monthly salary but worryingly, the report said, 10% (approximately 4.9 million) said that they regularly spend more than their salary.
The provider noted that spending £30 on protection insurance could be vital to people's future finances, compared to £56 on telephone bills and a £232 on supermarket and other shopping.
Adults also spend an average of £885 on holidays a year, £214 on electrical goods such as TVs, cameras and iPods, and £151 on white goods such as fridges and freezers.
Roger Edwards, proposition director at Bright Grey, said: "There is no doubt that 2012 is going to be a tough year for consumers, and the fact that a third of people currently have no money left at the end of the month is a worryingly fragile situation to be in.
"At a time when money is so tight, consumers should really think about their outgoings, how they can support themselves and their families in the best way, and protect themselves against any future financial difficulties; as times may get worse.
"It is a false economy to believe that just spending on the here and now is going to keep Britons in good stead.
"By cutting back slightly on some of their outgoings, most adults should be able to find a small amount of money to help provide the ‘financial safety net' they may need in an emergency situation," he added.