Australians aged 35-54 (Gen X) experienced the lowest level of financial comfort compared with all other generations.
A report released early August by ME Bank – The bi-annual Household Financial Comfort Measures report – painted a scary snapshot of Australian households reporting that a quarter of them had less than $1000 saved in the bank.
As the cost of living increases, and wages not rising, plus mortgage and rental stress remaining high, Aussies are continually dipping into what little savings they have to make ends meet.
Jeff Oughton, ME Bank’s consulting economist said that not only were Australians drawing on their savings to cover day-to-day costs, they were also saving less.
“At the end of the week when you’ve had the bill shock, fuel shock and you’ve paid the banker and the landlord, you’ve got nothing left and have no savings left either,” Mr Oughton said.
About 40 per cent of Australians spent all their income by the end of the week, while 11 per cent overspent, which is up from 8 per cent six months ago.
Four in 10 people with debt were worried they could not make minimum payments. That compounds the problem as the interest rates on missed payments can be huge.
The smallest change in financial situation can make a huge difference to people in these situations. Even the way petrol is climbing to all time highs can make a significant difference.
Joanne Yates from St Vincent de Paul Society NSW said the declining financial health of Australians should ring alarm bells.
She said it was a “red flag” that so many Australians didn’t have sufficient savings for an emergency.
“If we don’t have that buffer zone then we’re living on crisis edge all the time,” she said.
Thankfully with a little bit of foresight and planning you can start to manage your finances and take control of you and your family finances.
Karen Vickers from Your Spending Plan explains, “budgeting should be your fundamental starting point to make sure your spending is in control. After all, how can you tell you’re on track if you don’t know where your hard-earned pay-cheque is going?”
“Some of us, correction: most of us, will find it daunting to maintain a budget. Getting all your expenses together, tracking what should be paid and when, how much you have left for entertainment, saving for long-term goals – it’s enough to make you give up before you start.” Admits Karen.
But what if there was an easier way to manage your cash-flow that didn’t require hours of sifting through receipts or crunching numbers?
Online spreadsheets and budget are a challenge, for anyone. Where do you start, what does this mean, what does that mean? What goes here, what goes there? But there is help and it’s been built by Karen’s Sydney based business, Your Wealth Vault. Your Spending Plan educates people through the process of setting up a personal budget.
Your Wealth Vault have built an easy to use course-format guide which takes you step-by-step through the important parts to making a budget, and half way through you’ll have your fully functioning Spending Plan in place, just by way of following through the quick and easy modules.
You’re probably thinking that all sounds too easy, there must be a catch.
There is no "catch", but there is a charge to use this ground-breaking money-saving software. Good thing is it’s no more than the cost of a few cups of coffee a month, or a bottle of wine, and way less than a few hours parking at a Sydney beach.
So now you can help yourself, save yourself from financial stress for you and your family by getting your finances organised and knowing exactly what is coming in and what is going out. It’s as easy as starting to create Your Spending Plan.
You can always easily cancel if you feel it’s all too hard and then life can get back to your “overspending normal”. It’s your future and your choice.