An Ernst & Young survey of almost 5,000 people, commissioned by BT, found that 17% of people would struggle to find $500 to $1,000, while 30% had no money left over for savings.
It claimed that almost one in five Australians would struggle to come up with $1,000 to cover an emergency expense, while one in three people live from paycheck to paycheck, spending everything they earn, according to the survey.
More than 40% said they were able to meet their normal monthly expenses, but a third admitted they were worried about their ability to do so. At time of publishing the report it was said that the results clearly showed there are a large number of people who struggle to cope financially, and the problems are not always linked to the size of their pay-cheque. In many instances people are living in the hope that they will achieve their goals rather than planning for a fulfilling and secure future.
57% of those surveyed had no regular savings plan, and peaked among 45 to 54 year olds, who are often nearing the peak of their earnings capacity.
Close to 40% of people would be unable to maintain their current lifestyle if they lost their income for three to six months, thanks to not enough savings.
So how do you counter that?
Put a simple budget in place, as you never know when your financial situation can and will change. We like to call it Your Spending Plan as that is what we are all working around: Spending.
Here’s a helpful plan to start to understand the flow of your money: Your Spending Plan. It’s a good starting point to get you in the right mindset to manage your money.