How many working days do you think you'd need to get through each year to cover your basic expenses?
Well, according to recent Mozo research, Aussies work 124 days every year just to cover basic living expenses, like groceries, transport and housing.
Using the official household expenditure data from the Australian Bureau of Statistics (ABS), we found that the average Aussie spends over $30,209 just to get by, leaving a host of Aussies with little extra cash to contribute to their savings.
Of the most significant expenses was housing, which saw full-time employees work 41.3 days and spend $10,057 to cover, whether it be in the form of rent or their mortgage.
This was followed by groceries, costing $5,256 (21.6 days) and commuting costs, such as petrol or public transport (17.7 days), forcing Aussies to cough up $4,304 each year.
How long does the average Aussie need to work to cover their top expenses?
“Mozo’s research stresses the need for Australians to have a comprehensive budget in place as a lot of our pay cheque is going to the necessities, yet independent research reveals only around one in five Australians admit to having a budget in place,” said Mozo Director, Kirsty Lamont.
The data also showed that the average Aussie could have all their expenses ‘paid off’ by August 21st, but Lamont believes that by cutting back $100 worth of expenses each week, you could have your bills paid a month earlier.
“It’s well worth your time to see which household expenses could do with scaling back. Even trimming your expenses by just $25 a week could see you save a whole week of paying bills and a bigger chunk of your pay going towards building up an emergency fund or fun money,” she said.
Lamont also encouraged Aussies to think about the bigger areas where costs could be cut back further, such as your home loan.
“Competition is rife in the home loan market right now making it an ideal time for home borrowers to cut down their repayments. A recent Mozo mystery shop found the major banks are offering discounts of up to 0.82% to those prepared to call up their lender and ask for a better rate – a saving of around $1,700 a year.”
“We found that the average household could save up to $643 a year by simply switching to a better value energy plan, depending on where they live,” said Lamont.
As Aussies begin to get budget savvy and grow their savings pile, it could be a good time to start sniffing around for a new savings account. Our savings account comparison tool currently compares 212 savings accounts, helping you make the most out of your hard earned cash.