People who want to save money are finding it hard

Mozo

Monday 09 July 2012

A lot of people across Australia are desperate to put money away into savings accounts, but many simply cannot justify it at the moment.

People who want to save money are finding it hard

As we know, the global economy is still very shaky and plenty of Aussies are worried about their job security. With the threat of redundancy playing on people's minds, it is no surprise that more workers want to set up a financial buffer to tide them over should they lose their job.

However, with the cost of living being sky-high, many households don't have any disposable income whatsoever. A recent study by Dun & Bradstreet showed that one in three Aussies would be unable to support a basic style of living within a few weeks of being unemployed.

The problem is not just confined to Australia – far from it. Head of savings at UK-based lender Nationwide Richard Marriot said that Britons are also finding it hard to build up a savings pot.

"People want to save for two reasons," he remarked.

"The first is that if they have got savings they want to get a return on their money. But also they want to have the financial wellbeing of having a nest egg, or some rainy day money to put to one side to help if things get difficult," Mr Marriot added.

Not only are people unable to nurture a savings fund, it seems that many are falling further into debt because their wages are not going up as fast as everyday living costs.

The Dun & Bradstreet survey indicated that 40 per cent of low-income households will continue to rely on credit in order to cover their basic expenses.

Clearly, a lot of Aussies are living hand-to-mouth at the moment and there is little sign of things getting any easier. It is absolutely crucial, therefore, that people are making every cent count and you need to stick to a tight budget to ensure none of your hard-earned cash is going to waste.

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