Why is everything so pricey? New research shows rising costs of living has taken a toll on Aussies

Man filling up car with fuel at pump

You’re not imagining things. In this post-pandemic world, the list of non-Covid worries seems to be growing everyday.

New research has voiced the main concerns of Aussies ahead of the federal election. Not surprisingly, financial and cost of living concerns top the list. 

The Real Concerns Index 2022 rated the worries of Australians around family, finance, work, education, health, technology, climate change and government. It scored these areas out of 100.

Aussies worried about cost of living

Let’s take a quick look at the top concerns:

  • 89% are concerned with the rising cost of living.
  • 88% are majorly concerned about the rising cost of energy, food and fuel.
  • 84% are worried about the pandemic’s effects on our economy
  • Lastly, 81% of Aussies are concerned about how Australia will economically recover from the pandemic.

And due to Covid-19, many people’s priorities have changed.

Younger generations are financially uptight because they wish to buy a home, start a family or finally pay down their debts, according to co-founder and financial adviser at Fox and Hare, Glen Hare.

“As the cost of everyday essentials continues to rise, people see more and more of their pay disappear before they have a chance to even think about saving or investing. A situation that serves to heighten feelings of hopelessness as house prices race further and further out of reach for many young Aussies in particular.”

How are Aussies facing these challenges?

Not surprisingly, new research from freelance marketplace Fiverr shows that Aussies are out of pocket $2,664 on average more than 2021.

One third of Australians between the ages of 18-34 years old are considering a second job to address the shortfall, some simply trying to just get by, and others using the extra money in a bid to get ahead.

In this demographic, one in twelve is already managing dual employment to help alleviate financial pressures.

Where are Aussies looking to save money?

Here are two areas of priority for us looking to save:

  • 56 per cent of Australians are choosing to eat out less
  • 54 per cent are using less electricity
  • The out-of-pocket short fall for everyday Aussies is huge, says Fivver’s vice president of international expansion, Peggy de Lange.

    “With so many grappling with price hikes and the increased cost of living, it comes as no surprise the public is considering new means to make a living,” she says.

    “The state of the economy is leading to a steep increase in the amount of people considering a freelance side hustle to combat the ever-increasing cost of living. The fact that people are thousands of dollars worse off than they were in 2021 and are pulling back from discretionary spending clearly demonstrates the brutal economic challenges we currently face, and the foresight Aussies have in staying on top of their finances.

    So, what are some other ways you can save money?

    • Use a savings account: Your grandma has probably told you that putting aside money for a rainy day is the best way to save money. However, finding the best savings account to put your hard earned cash in can be a bit of a time-consuming task. This guide will answer all your questions on savings accounts, quickly.
    • Cut down your energy usage! This will mean using jumpers and cuddling your cat.
    • Consider purchasing groceries online, or from small local shops. Many supermarkets offer free delivery and money off if you purchase a certain amount of food in one single go. Here’s some of the best online grocery shops for you to compare
    • Rethink your commute! If you’re driving into work everyday, you might want to consider doing some calculations on how much your daily commute is actually costing you. Especially if you’re using tolls, it may come as a shock to you how much that toll beep before the harbour bridge is costing you. Now is a great time to think about carpooling, biking, or catching the train to work where you can.

    The report in this story was commissioned by Real Insurance and surveyed over 5,000 Aussies.

    At Mozo we’re always looking to help you save money. Check out our Cost Of Living guide for more information about rising costs and how you can tackle them.