A new survey has revealed that more than half of Aussies are living paycheck to paycheck, with 42 per cent having less than $1000 in savings.
That means that many would struggle to make ends meet if their fridge went on the fritz or a root canal was needed.
Finding the money for either would be literally like pulling teeth.
And Finder’s Consumer Sentiment Tracker (CST) has revealed just how under pressure Aussies are, despite living in the so-called lucky country.
The survey revealed that 77 per cent of respondents were currently stressed about their financial situation, with 25 per cent “extremely stressed” and 52 per cent “somewhat stressed”.
The biggest stressor was grocery bills (39%), followed by rent/mortgage repayments (37%), petrol (27%) and energy bills (24%).
Grocery bills are a major concern for 39 per cent of the Aussies that were surveyed
In a sign of the times, petrol bill stress has soared thsi year, up from 11 per cent in Janauary, before the start of the war in the Middle East, to 27 per cent in April.
Mortgage and rent payments were also making Aussies hot under the collar. Picture: iStock
The survey also revealed that the average Aussie is spending $207 a week on groceries, and more than half (51%) are living paycheck to paycheck.
And with home prices continuing to climb, 36 per cent of Aussies, or more than a third, don’t think they will ever be able to afford their own home.
The findings come as Federal Treasurer Jim Chalmers prepares to hand down the Federal Budget tonight, with cost of living, housing for younger Aussies, security, tax reform and productivity to be key focal points.
MORE: Five costly mistakes that can sink your property dream
$400 to $550: Rent spike warning
No escape as 5-week mortgage hike wave sweeps Australia
Treasurer Jim Chalmers arrives at Australian Parliament House. (Photo by Hilary Wardhaugh/Getty Images)
Finder money expert Richard Whitten said Aussies had been doing it tough for years now. “With three rate rises this year already and rents still climbing, tonight’s budget lands at a time when many households are running out of breathing room,” he said.
“Any relief that puts money back in pockets will be welcome, but the government is walking a tightrope.
“Inflation is the problem, and government spending itself can be inflationary.
“But people need support, and careful, targeted spending can make a big difference to the lives of ordinary people.”
Finder’s home loans expert Richard Whitten photo: supplied
Mr Whitten said that the “headline-grabbers” would likely be changes to the capital gains tax discount and negative gearing.
“A lot of people will pay more tax on their investments when they realise a gain,” he said. “But these are big reforms about generational fairness.”
Mr Whitten urged Australians to take control of their personal finances regardless of what’s announced in the budget.
“Many people are leaking money in places they don’t even realise,” he said.
“From culling subscriptions to finding a better deal on things like your home loan, energy, and insurance, you could put thousands of dollars back in your pocket.”
English (US) · 