Australians struggling to pay bills and have an emergency fund, says NAB

The cost-of-living continues to rise and a new NAB research says that many people find saving challenging due to debt repayments, bills and everyday spending. 

It found that one in three Aussies have high financial stress, as a result.

“Australians want to save but actually doing it is another thing because of household expenses and everyday activities,” said NAB group executive of personal banking, Rachel Slade.

NAB surveyed about 2,000 Aussies adults in late 2021 and its data shows that people living in NSW, ACT and Tasmania were the ones experiencing most financial stress. Many who are struggling with financial hardships asked for loans from friends and family to help them manage, while more than 40% of all adults reported a decline in their savings due to said hardships. 

Those who did manage to save had an average account balance of about $1,000 or more during the three month period the survey was conducted. According to popular finance guru, the Barefoot Investor, the ideal amount in an emergency fund should be about $2,000.

Tips on how to start saving for an emergency fund

Saving doesn’t have to feel like a chore, you can actually make it into a game. Having a savings challenge usually doesn’t require depositing large amounts of money into an account, which is a big plus. 

Something like the $5 Saving Challenge where you transfer $5 into your savings every time you see your everyday account balance end in a 5 can help your savings slowly grow.

Alternatively, you can take a good look at your finances to explore where you can save money–which could mean switching energy providers or your car insurance. Even if it’s just saving a couple dollars here and there, don't forget that every little bit helps in the long run. 

“Cancelling unused subscriptions can be done at the click of a button, while shopping around for better deals on key bills can save you hundreds of dollars a year,” said Slade.

If you’re one of the many Australians trying to figure out how to have better savings check out our tips and guides page to get you started. Also check out our savings account comparison table below to find which account is best for you.