These were the findings from the inaugural Financial Stress Index, compiled by global research firm CoreData on behalf of Aussie group, Financial Mindfulness, which indicated financial stress is not only being experienced by low-income households in 2017.i
Statistics from the Financial Stress Index revealed the following about financially-stressed Aussies:i
According to the Australian Bureau of Statistics, there are two financial stress indicators—these include financial-stress experiences and missing-out experiences.ii
Writing down what you earn, owe and spend could help you to create a workable budget, and at the same time let you quickly identify areas where you could be saving.
Even a small amount of cash deposited on a frequent basis could go a long way towards your savings goals. In fact, 41% of Aussies say they save just a little at a time.iii
Credit cards are handy but they’ll often cost you as they typically charge high interest rates on top of the amount you’ve already taken out.
This will help next time you bust your phone or need a last minute trip to the dentist. Plus, an emergency fund means you won’t have to rely on high interest borrowing options.
One in two Aussie couples admit to arguing about moneyiv, so if you haven’t already, sit down and make sure you’re on the same page, and that both parties’ goals are being considered.
You more than likely have several product and service providers, and figures show you could save more than a grand annually on energy alone just by switching from the highest priced plan to the most competitive on the market.v
Whether it’s life insurance, income protection (which provides up to 75% of your income if you can’t work due to illness or injury), or contents insurance to cover items that may be lost, damaged or stolen, there are a range of insurances that could help should the unexpected happen.
The government’s Age Pension alone is unlikely to be able to cover a comfortable or even modest lifestyle in retirementvi, so putting a little extra into super could reduce the potential of further financial stress later on.
If you or someone you know are feeling financially stressed, there is help and information available. We are always here to assist. Alternatively, visit the beyondblue website or phone Lifeline on 131 114.i CoreData / Financial Mindfulness Financial Stress Index – 2017 full press release
iii ASIC’s MoneySmart – How Australians Save Money table 1
© AMP Life Limited. First published January 2018