Savvy, an online financial broker, has released the Financial Wellbeing Report: The Changing State of Australians’ Finances, which reveals the latest findings on how the nation’s population has fared financially over the past three years.
The observed financial well-being of Australian consumers slipped one point from 51.1 points the previous year. The self-reports of “just coping” or “having trouble” with financial well-being increased by 1.5 points. Savings levels have improved since March 2020, with balances 46 per cent higher than pre-pandemic levels. Australian consumers “consistently spending at high levels” has increased by six points.
There was a six-point increase in the number of Australians consistently spending at high levels, defined as over 80 per cent of their income in the survey.
The number of Australians experiencing severe payment problems did not change, and the reasons for them – such as being behind in bills and rent – remained unchanged as well.
Australians living paycheque to paycheque increased by two points.
There was a one-point increase in the proportion of Australians holding below-average savings, defined as “more than one standard deviation below the median for their age bracket.”
Financial planning can alleviate and/or remedy financial issues.
For example, Savvy said: “One way to wrangle debts is to create a snapshot of your income and spending, set a strict budget, and consider consolidating debts using a personal loan. This allows households to ease some of the pressure of debt and put them on a path to debt freedom, saving more, and greater financial well-being.”
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