Are you living pay to pay? NAB survey shows you’re not alone
A new survey by the National Australia Bank (NAB) highlighted that while most people consider themselves as good money managers, one in five adults rarely or never have any money left at the end of a pay cycle.
The research showed that most people will access their savings or use their credit card when finding themselves without money before their next paycheck. With unexpected expenses like a dental or medical issue listed as the most common reasons to dip into savings, Mozo advises Aussies to set a savings goal and create an emergency fund for such instances.
Good Shepherd Microfinance CEO Adam Mooney said that the disconnect between how well people think they manage their money and the reality of being caught short at the end of a pay cycle suggests that some people in our community are not prepared for unexpected expenses.
“When people have no buffer to cope with unexpected expenses like a car or washing machine breaking down, or a change in personal circumstances such as an illness or divorce, problems can quickly build up and become a significant financial and emotional burden,” Mooney said.
Mooney explained people who find themselves in difficult financial situations often seek quick fixes such as selling their possessions or getting a high cost payday loan. "While satisfying the immediate need, these solutions can lead to bigger problems down the track.”
Looking to set aside money for a rainy day? Search Mozo’s term deposit section for a high interest account to help build your cash stash.