Stagnant wage growth and a higher cost of living is having an impact on budgets, with Australians able to save, on average, just $47 per pay cheque, according to a financial comparison site.
According to comparison site Mozo, one in two Australians is saving less than $200 a month and 16 per cent are relying on credit to get them through to the end of the month.
Mozo’s head of public relations, Gemma Rasmussen, noted that younger Aussies are the most affected in the current economic climate.
“Inflation is growing half a percent quicker than Australian wages, and the gap is constantly widening, meaning Australians have less to come and go every year,” Ms Rasmussen said.
When struggling to make ends meet, Australians are reportedly cutting back on groceries as well as making reductions in internet access, smartphone usage and paid-for-TV subscriptions.
Tips for budgeting
Mozo has provided some information on how you might be able to make your pay packet stretch a little further:
- Break down your spending into categories: household, food, transport, entertainment, personal and savings. Estimated expenses are often quite different from reality and it can give you an idea of what areas you need to cut back.
- Make savings a non-negotiable part of your budget, even if it’s only $50 a month. Funnel your savings into a high-interest savings account so your cash can’t be dipped into easily.
- Put aside some money each week that you can spend, no questions asked. The occasional indulgence makes sticking to a budget that much easier.
- Consider whether a credit card is hindering your savings options. Debit cards are now accepted everywhere and a good balance transfer card can help with minimising or getting rid of debt.
With costs of living continuing to increase, we can assist you to put in place a plan to get back on top of things. Call our team at 08 8211 7180 or you can also contact us at info@centramoney.com.au.
Article courtesy of Nestegg.