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 Aussiesi
According to the Australian Bureau of Statistics, there are two financial stress indicators-these include financial-stress experiences and missing-out experiencesii
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_;;;
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 markeP
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 13 11 14.
Do you want more financial control of your life?
i CoreData / Financial Mindfulness Financial Stress Index - 2017 full press release
ii ABS - Household Expenditure Survey, Australia: Summary of Results, 2015-16
iii ASIC's MoneySmart - How Australians Save Money table 1
iv Finder - Heated conversations: 1 in 2 Aussie couples argue about finances
v Mozo: Sick of high energy bills? Aussies willing to change providers could be saving over $1,000 a year
vi The ASFA Retirement Standard - June quarter 2017
Article by AMP Life, First Published January 2018
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.