Where is your safety net? – protect your Asset

Where is your safety net? – protect your Asset

 Where is your safety net? – protect your Asset

Paul Douglas-IrvingCEO – AssetZ 19th February 2013

A recent study by BT Australia Financial Health Index found some alarming statistics about the financial wellbeing of Australians.

Here are some highlights of the report –

·         1 in 3 live from pay check to paycheck and could NOT raise $1000 in an emergency

·         1 in 2 could not survive more than 6 months without an income

·         1 in 3 are struggling with day to day living expenses

·         1 in 11 would have trouble borrowing $2000

·         2 in 5 save regularly

Even the higher income earner (over $95,000) admit living week to week, with 48 % of the working community not contributing to any Superannuation plan

Another alarming fact is that very few people and households can state how much they spend on food, utilities and other essentials as over 57% of the population has no regular savings plan or budget.

It’s not all bad news as 4% of the population saves between $2,000 to $5,000 per month. This fits in with the national long term average of just 5% of the population being financially independent at retirement age – the balance relies on 3rd party hand outs or family support.

The survey also showed that Tasmanian s were the worst savers with 52% of the state’s population saving less than $200 per month followed by Queensland at 51%. The best savers were West Australians with 15% of the state’s population saving more than $1000 per month.

·         20 % of Queenslanders couldn’t find $1000 in an emergency

·         32% of Queenslanders live pay cheque to pay cheque

·         32% of  Queenslanders worry about meeting their basic financial commitments

Most households can change this situation by becoming money aware and managing their finances, most families place financial management in the ‘too hard Basket’. A simple step that everyone can implement is stop shopping for things you don’t need, pay off the credit card, over time these little things will make a substantial difference.

© AssetZ Group of Companies all rights reserved.

Advice Warning
Any advice provided in this publication should be considered General Advice as it does not take into account your personal needs and objectives or your financial circumstances. You should therefore consider these matters yourself before deciding whether the advice is appropriate for you and whether you should act upon it.