The ME Bank six-monthly survey of financial comfort has revealed that many Australians are struggling in their current financial circumstances.
Australian households have expressed that their current circumstances have left them feeling worse about their net wealth, income, jobs and living expenses compared to the previous survey conducted 6 months prior.
With wages remaining stagnant but the cost of living increasing, it is no surprise that people are struggling to hold their finances together.
Although the cash rate was dropped to 1% by the Reserve Bank of Australia, the survey revealed that most Australian’s are struggling with their mortgage repayments.
It is not just homeowners who are feeling the stress due to cost of living and mortgage repayments, rental payment stress was reported by 62 per cent of tenants.
Did any Australian’s feel more stable?
Compared to the survey conducted 6 months ago, a small amount of Australian’s did report that their financial comfort has increased. However, this was reported by the big earners in town.
High-income households (households with more than $200,000 in income per year or who hold more than $1 million in their superannuation) reported that they feel more financially comfortable.
Savings for a rainy day
40 per cent of households also revealed that after they paid their monthly expenses, there are no savings left. Following this, 20 per cent of households said that if an emergency occurred, they did not think they would be able to raise $3000. Clients who are financially confident will have the ability to raise a few thousand dollars in an emergency.
34 per cent of Australians expressed their concerns with their cash savings.
With financial discomfort on the rise, Australians need ensure they have a plan in place for any emergencies that occur.
If I have a medical emergency would I be financially stable?
If I was made redundant, would I be financially stable while I wait to be re-employed?
If my rent or mortgage repayments suddenly increased, would I be able to make the repayments?
Are there any areas in my day to day spending that I could be saving money?
If you don’t feel financially stable enough to be able to handle life’s many curveballs, it’s time to come see us at Power2 accounting. With more and more households feeling less financially comfortable, it’s time for you to get ahead of your finances. Click here to contact us today.