The cost of living crisis has pushed many into high levels of financial stress, yet comparison site Finder discovered many are sabotaging themselves even further.
A survey of 1,011 respondents from Finder revealed that most Aussies are setting themselves up for financial failure and have exposed the biggest obstacles that stood in the way.
The most common barrier was wasteful spending with the average Aussie wasting $154 per month.
Over a third of respondents said the biggest waste was spending too much money on shopping, according to Finder.
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Frivolous spending was holding the majority of Aussies back from financial freedom.
Other money mistakes included paying bills late, which one quarter of respondents were guilty of, one in five fell into credit card debt and 20 per cent said they spent too much money at bars, pubs and clubs.
Sarah Megginson, personal finance expert at Finder, said majority of Aussies are unknowingly standing in their own way.
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“Most people don’t have a money problem – they have a mindset problem. Breaking these patterns could be the difference between staying stuck and building real financial freedom.
“The idea that you’re ‘too old’ or ‘too busy’ to build wealth is a myth – and one that’s costing Australians dearly.”
Another major roadblock was that one in five felt their lack of financial knowledge was preventing them from financial success.
Personal finance Sarah Megginson. Picture: Michelle Kwan.
“These blockers are silent wealth killers – they creep into our everyday choices and steal opportunities,” Ms Megginson added.
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“But the good news is once you are aware of them, you can change them.”
She urged Aussies to scrutinise all their living costs to free up more discretionary income.
“It’s never too late to take control – increasing personal wealth does require a plan and discipline to reach your goals,” she said.
Young Australians wasted the most money, according to a Finder survey, with gen Z admitting to wasting a whopping $237 a month, compared to just $65 by baby boomers.
Finder money expert Rebecca Pike said whether you’re wasting $5 or $500, it all adds up.
“It’s not about living like a monk – no one is saying not to have fun and enjoy yourself from time to time,” she said. “The more you can segment or budget what you will spend for fun, the better.
Rebecca Pike money expert at Finder.
“Once you think about spending as a long-term investment rather than short-term indulgence, the more you will actually enjoy when you do splurge.”
Ms Pike said even small changes can have a big impact.
“When you add it all up, that’s money you could be saving for a home deposit, a holiday, or just a rainy day.
“Redirecting just a small portion of that could set you up for greater financial security, whether it’s building savings or paying off debt.”
Her tips included manually tracking your spending, through apps like Gather or WeMoney and putting savings into a high-interest savings account.
“It’s a low-risk way to let your money grow – helping you build a financial cushion.”
Other tips included putting 24-hours between unplanned purchases and unsubscribing from tempting emails and alerts.
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