Invest
Aussies’ savings at dangerous levels
Australians’ financial health is in a worrying state, with many unable to weather even small financial shocks, according to new research.
Aussies’ savings at dangerous levels
Australians’ financial health is in a worrying state, with many unable to weather even small financial shocks, according to new research.
Paul Feeney, co-founder of online financial planning service Map My Plan, says more than a third of Australians are holding precarious levels of savings.
“Thirty-six per cent of working Australians could only access $1,000 or less in the event of a financial shock, such as a medical emergency, without going into debt. Eight per cent could access nothing at all, which is unsurprising given 14 per cent save nothing each month,” Mr Feeney told Nestegg.
The alarming figures came from Map My Plan’s survey of more than 1,500 Australians into the country’s financial health.
“For me, financial fitness is around managing your current cash flow and the ability to absorb a financial shock, through savings or possibility a mix of insurance, [but] our survey shows us that we’re not even close to covering those things,” Mr Feeney said.
The survey scored Australians’ financial health a meagre 113.5 out of a possible 200.
“The most wealth-destructive thing people can do is to go overboard on your credit card and then trying to chase that thing down,” Mr Feeney said.
“It’s quite interesting to see that more than half the people who have credit card debt report they have actually got cash savings. Even though basic mathematics tells you to pay off that credit card, there’s a real reluctance for people to do that.”
Mr Feeney said Australians who want to maintain control of their finances need a financial plan.
“It can be hard to track where your money is going, but once you do you can control your finances and not the other way around,” he said.
“Our research shows that when people have a plan, their financial fitness level increases dramatically.”
RELATED ARTICLES
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
