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Squeeze on savings hits budgeting hard

  • November 15 2019
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Earn

Squeeze on savings hits budgeting hard

By Cameron Micallef
November 15 2019

Stagnant wage growth and a higher cost of living is having an impact on budgets, with Australians able to save, on average, just $47 per pay cheque, according to a financial comparison site.

Budgeting

Squeeze on savings hits budgeting hard

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  • November 15 2019
  • Share

Stagnant wage growth and a higher cost of living is having an impact on budgets, with Australians able to save, on average, just $47 per pay cheque, according to a financial comparison site.

Budgeting

According to comparison site Mozo, one in two Australians is saving less than $200 a month and 16 per cent are relying on credit to get them through to the end of the month.

Mozo’s head of public relations, Gemma Rasmussen, noted that younger Aussies are the most affected in the current economic climate.

“Inflation is growing half a percent quicker than Australian wages, and the gap is constantly widening, meaning Australians have less to come and go every year,” Ms Rasmussen said.

When struggling to make ends meet, Australians are reportedly cutting back on groceries as well as making reductions in internet access, smartphone usage and paid-for-TV subscriptions.

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Tips for budgeting

Mozo has provided some information on how you might be able to make your pay packet stretch a little further:

  • Break down your spending into categories: household, food, transport, entertainment, personal and savings. Estimated expenses are often quite different from reality and it can give you an idea of what areas you need to cut back.
  • Make savings a non-negotiable part of your budget, even if it’s only $50 a month. Funnel your savings into a high-interest savings account so your cash can’t be dipped into easily.
  • Put aside some money each week that you can spend, no questions asked. The occasional indulgence makes sticking to a budget that much easier.
  • Consider whether a credit card is hindering your savings options. Debit cards are now accepted everywhere and a good balance transfer card can help with minimising or getting rid of debt.
Squeeze on savings hits budgeting hard
Budgeting
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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