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.”
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
Sydney ranks among top data centre markets in the world
Sydney ranked eighth globally and clinched the third spot in the Asia-Pacific data centre market as the industry continues to expand at a breakneck speed. ...Read more
Spending
The trends driving consumer change in 2022
Global research has provided insight into the top consumer trends for the 2022 calendar year. ...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
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
Sydney ranks among top data centre markets in the world
Sydney ranked eighth globally and clinched the third spot in the Asia-Pacific data centre market as the industry continues to expand at a breakneck speed. ...Read more
Spending
The trends driving consumer change in 2022
Global research has provided insight into the top consumer trends for the 2022 calendar year. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
