Skint: More than 9 million Aussies have less than $1,000 in savings
Millions of Australians have less than a grand to their name, according to new research by Finder.
Finder's Consumer Sentiment Tracker of 3,214 Australians revealed almost half (45%) of Australians have less than $1,000 in their bank account.
That's equivalent to 9.4 million people who have very limited funds to fall back on.
Shockingly, 1 in 5 Aussies (20%) admit they have $0 in savings – equivalent to 4.2 million who are completely skint.
Of those 9.4 million who have less than $1,000 on hand, the average bank balance is just $210, barely enough to replace a flat tyre.
The research found 3 in 4 (76%) Aussies are stressed with their current financial situation.
However, there's a stark contrast between the haves and the have nots.
The average Australian has a staggering $36,095 in the bank, with the nation's super savers pulling up the national average.
Of those who have more than $1,000 on hand, the average bank balance is a whopping $65,078 – two-thirds of the average full-time salary in Australia ($98,217).
Graham Cooke, head of consumer research at Finder, said Aussie households are facing tough times.
"Cost of living pressure in Australia is at a record high, which is why so many Aussies having no savings buffer is a huge concern.
"Even something as trivial as a flat tyre would be too much for many households right now.
"Millions are living pay to pay, with many running out of money long before they run out of month."
Cooke said the data highlights the risk of households struggling with the cost of living crisis.
"Those lower levels of savings means people are much more likely to have to turn to credit cards, loans, and buy-now-pay-later products to get by.
"Whilst these products can be great if used properly, they can quickly get out of hand if relied on for everyday expenses."
Cooke said Aussies should aim to have 3 months of income saved as precautionary savings.
"Find what savings you can create in your everyday expenses – $50 shaved off your monthly car insurance bill could equate to an extra $600 by the end of the year."
He urged Aussies to find ways to increase their income streams to get them closer to their savings goal.
"A high interest savings account is designed for people who want to build up their savings while earning more interest than a standard bank account.
"A recurring investment of $100 a week into a high interest savings account paying 5.50% interest would amount to $2,642 in two years," Cooke said.
| How stressed are you with your current financial situation ? | |
|---|---|
| Somewhat stressed | 53% |
| Extremely stressed | 23% |
| Not at all stressed | 24% |
| Source: Finder's Consumer Sentiment Tracker of 3,214 Australians, March 2024 |
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