NT and Tas least optimistic about the next 5 years of work

Residents of the NT and Tasmania are the least optimistic about the next five years of work, according to a new survey from ADP Research Institute. The survey of more than 7,000 people living in the Asia Pacific region shows that around 30% of Tasmanians and Territorians are worried about the future of work.

On top of that, nearly 40% of all those surveyed in Australia said they expected Covid-19 to have an impact on their ability to find a job over the next three years.

The savings silver lining

Perhaps a slight silver lining to come out of the economic uncertainty felt over the past 12 months is that many people have started to take saving more seriously. In fact, a recent MLC Wealth survey found that over half of respondents were more serious about saving than they had been a year ago.

“Despite strong economic data, the emotional and financial hangover of Covid-19 is very real for many Australians and savings are understandably seen as an important safety net,” said MLC Group Executive for Retirement and Investment Solutions, Tim Steele.

Steele added that although it is great that Australians are focusing more on savings, individuals need to be more informed about their financial decisions and take proactive action. He said, “Small, educated steps taken now can make a big difference to your future financial outcomes, particularly when it comes to making the most of your savings.”

But what exactly does making the most of your savings look like?

Financial health check

So, how do you use your money wisely? Well, there are a number of actions you can take to give yourself a financial health check and get yourself on track to a more financially-secure life. A few of these are:

• Review utility bills. Review how much you’re currently paying for gas or electricity, internet and a landline phone. Could you switch to another provider and pay less? Could you be on a less expensive plan?
• Find out your credit score. Generally, you can request a copy of your credit score for free, once a year. It’s a good thing to know in case you want to take out a home loan in the near future or any other line of credit. Plus, if your score isn’t great, you can work on improving it.
• Consolidate debt. Following on from the last point, if you do have debt - see if you can consolidate it and work on getting rid of it. One way to do this is to take out a debt consolidation loan. Or if you have credit card debt, another way is to put it all on a balance transfer credit card with a 0% interest rate offer.
• Make a budget. You’ve probably heard it a million times before, but coming up with a budget can actually be really helpful. Just the act of taking stock of your incomings and outgoings and getting a snapshot of your finances can be useful in knowing where to cut back in the future. Even if you make a very vague plan and only come back to it now and again, it can still be worth it.
• Cut unnecessary expenses. Once you have a budget, or you’ve at least taken stock of where your money is going, it will probably be fairly obvious where you can make cuts. Are you signed up to subscription services you could do without? Could you survive with a less expensive mobile phone plan?

Lastly, having a savings account that works for you is vital. Indeed, MLC found that one in three Australians are concerned about the interest rate on their account. Plus, over 50% said they now place more importance on their superannuation fund and investments, than they did before the pandemic hit.

If this sounds like you, then you might be keen to review where you currently keep your rainy day fund. Head to Mozo’s compare savings accounts page to see what else is on offer. Or check out the interest rates below, to see if you could be getting a more competitive deal.