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How are Australians saving their money?
INFOGRAPHIC: Many Australians plan to save more money at the start of a new year, but a survey reveals that only not everyone sets concrete goals to achieve this.
How are Australians saving their money?
INFOGRAPHIC: Many Australians plan to save more money at the start of a new year, but a survey reveals that only not everyone sets concrete goals to achieve this.
In fact, only about 83 per cent of respondents have a specific target in mind when they save.
Top Aussie saving goals
Among the Aussies who participated, 53 per cent specifically wanted to save money to fund a holiday. A good 46 per cent want to set money aside to bulk up their rainy day fund to ensure that potential emergencies are covered.
The third top reason – with 40 per cent of participants agreeing – plan to save money for a home deposit or renovation.
Other goals include wanting to budget, pay off debts and building their retirement nest egg. Those planning to grow their retirement fund plan to use their potential savings to invest in shares, bonds, commodities or investment property.
How do Aussies manage their savings goals?
Those who stick to their savings goal revealed the strategies they use to abide by their resolution.
Majority of surveyed Aussies (52 per cent) keep their extra money in a separate savings account. Specifically:
- 21 per cent set up auto transfers; and,
- 17 per cent transfer money in an account they can’t use for spending.
About 15 per cent preferred to build up their savings in their transaction account, possibly opting to exercise restraint with their spending.
About 11 per cent deal with their mortgage while saving by depositing their extra cash in their home loan offset account.
Note that some people combine a variety of saving strategies, so figures above do not add up to 100 per cent.
Why do people break their savings goal?
Despite trying hard to stick to their financial resolution, some are unable to accomplish their goal.
The biggest reason why resolutions fail are unexpected changes, such as changes in financial circumstances or unforeseen expenses. This accounts for 41 per cent of failed resolutions to save.
Lack of willpower account for 27 per cent of failed saving plans, while 17 per cent admitted that their saving goal was unachievable, which led to breaking their resolution.
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