61 percent of Aussies have no savings.
Is this you?
I have been hearing some really worrying news recently about the state of people’s finances in Australia.
UBank carried out some research and found that at least 2 million Australians have less than $1,000 in savings. Almost two-thirds (61 percent) of Australians do not have a dedicated savings plan and 46 percent are living without a budget at all.
To make things worse, almost half of Aussies (45 percent) admit to burning money on purchases that simply ‘make us happy’.
This will provide a moment of happiness but in the long run, it will just make their financial stress more unsustainable.
Let’s look at the whole picture though.
UBank reports that with price hikes to utility and grocery bills combined with an average yearly wage growth of just 2 percent across the country, it is little surprise that more than $31 billion is being spent from people’s savings annually.
On top of this, the nation also has a $32 billion credit card debt and 57 percent of people are relying on savings to pay bills!
The most troubling thing I read was that more than 35 percent of Australians say that they do not have dedicated savings account for planning ahead. Australians are living beyond their means and are completely unprepared for unforeseen emergencies!
This is completely avoidable – even if you are on a low salary, it is easier than you think to put money aside each week to build up a nest egg.
Think about the small costs and how they add up. If you pay $4 for a coffee twice a day, that is $3,000 a year that you could be savings. That’s just coffee, image how much you would save on the bigger expenses!
Now think, if you can save up to $50,000 you have a deposit for a $400,000 property. Then using further savings and future equity growth from this property, you could continue to purchase properties and develop your own investment property portfolio.
Why would you live off your savings when you can get them to work for you!
Don’t be like the 61 percent of Australian who do not have a savings plan or the 46 percent who don’t have a budget. Take action now to make a change to your life that will allow you to be financially free and retire with a healthy income!
Don’t be a struggler, maximise your finances and retire financially free through investing your hard earnt money in a low-risk property investment strategy with the help & support of experts.
Until Next Time,
Helen.
