Recent data has revealed Australian household debt levels are at an all-time high, 17% of us have absolutely no spare cash and even more worryingly, new research suggests one in four Australian’s only have $400 saved to deal with emergencies.
The same research found that less than half of the Australian population would have enough money saved to cover an emergency of over $1000.
Experts, including Fox Symes director Deborah Southon, have dubbed these findings “really disturbing”.
Deborah told Adelaide Now that the only reason people are in debt is because people spend more than they earn.
“People don’t even have $400 in the bank to pay for an emergency like something happening to their car or their fridge or washing machine blowing up.”
“They should have at least three months worth of salary set aside so they have some kind of base to go forward,’’ she said.
12 ways to save money
Whether you are saving for your next holiday or your dream house, counting your pennies can be a long and tedious process.
But saving money doesn’t have to be so agonising.
We spoke to certified financial planner Adele Martin to get some expert tips.
Take your lunch to work – this could save you as much as $50 per week. It doesn’t sound like a massive saving, but over a year it adds up to $2,600. Adele notes that this is a whopping $100,000 over the course of your working life.
Have a look at your home and contents insurance. Adele says that consolidating your polices to one provider can often save money.
Likewise, Adele suggests shopping around with energy providers – some offer discounts of 10 or 15 % if you sign up for 12 months or more.
Have a good look at your bills, some providers will offer a discount if you the bill is direct debited from a bank account.
Swap Foxtel for Netflix – Adele says that this could save over $1,00 a year.
While it might seem like a bit of a faff, sitting down at the weekend to meal planning and write a weekly shopping list could save you $1,000’s of dollars a year.
If you have credit card debt, you pay be able to pay it off faster if you move to a credit card that offers an interest free period.
Adele suggests using separate bank accounts or offset accounts for different types of expenses. For example, a bank account for clothes, make up, getting hair and nails done, an account for entertainment and socialising, an account for household expenses and groceries. Adele says if you put some money into each account every week, you will become more conscious of what you are spending and ensure you don’t over spend.
While gym memberships are good value if they are being used, if you are not an active gym member it’s just money down the drain.
When it comes to your mobile phone bill, Adele says that if you are consistently going over the data cap on then you should look at a new phone deal as often the newer deals allow a lot more data.
If you need a new dress for a special occasion, Adele suggests renting one or borrowing one from a friend.
And when it comes to clothes, Adele suggest having a good wardrobe cull; selling unused items clothes on ebay can give you extra cash to go shopping with.
