A third of Aussies live pay cheque to pay cheque

Article by Kevin Boyle

A new survey has found that many Australians are focused on achieving life goals, rather than planning a fulfilling and secure future based on a substantial amount of backup funds in their savings account.

The BT Australian Financial Health Index has revealed that many household budgets are under strain to meet their monthly requirements, with 41 percent of respondents claiming they are stressed about paying their monthly expenses. Even more worrying was that 17 percent claimed they would struggle to put together $500 - $1000 if required for an emergency.

The survey also revealed that pay check size is not always the cause of the problem. 57 percent of Aussies simply have no savings plan, choosing to focus on achieving life goals rather than making a plan with their current financial levels. And astonishingly this figure peaks among 45 to 54 year olds who are at the top of their earning capacity.

"This has implications for their health and lifestyle, impacting on their levels of stress, and in the longer term influencing their enjoyment in the years after they finish work," said Deanne Stewart, General Manager of BT.

Those looking to relieve financial pressure and get their savings on track should begin with using a budget calculator. Savers will also greatly improve their success through choosing a high interest rate savings account when planning to build up their emergency and backup funds. 

Have a question about savings accounts? Ask the gurus at Mozo Answers.