5.9 million Australians live pay to pay
How long could you survive without an income?
A survey by Finder has revealed 46% of Australians, the equivalent of more than 5.9 million working Aussies, couldn't survive financially for more than a month if they suddenly lost their job or could no longer work.
More than 2.1 million Australians are living day to day, predicting they could only make ends meet for less than seven days if they were not able to continue working.
Finder Personal Finance Specialist Sophie Walsh said many Australians were struggling with rising everyday living expenses and paying for bills such as rent, electricity and groceries.
"Millions of households are struggling to make it to pay day every month,” Ms Walsh said.
“That's a very stressful way to live, knowing any unexpected expense could pull the rug from under you.
"We know many Aussies are putting a large amount of their pay towards essential living costs, which doesn't leave a lot of wiggle room for an unexpected financial emergency.
"If you suddenly could no longer work or lose your job, the bills will keep rolling in so it's a good idea to mitigate the risk of something going wrong by making a conscious effort to pay down any debt you might have and put aside what you can each month into an emergency savings fund.”
Tips to reduce debt and build savings
Review your spending.
It’s important to know what’s coming in and going out. By tracking your spending you’ll have an idea of how much you can afford to put aside in an emergency savings fund.
Create a budget.
Set yourself, daily, weekly or monthly allowances for certain expenses.
Focus on paying down debt.
If you have a credit card or personal loan focus on paying off these debts before building your savings.
Hold yourself accountable.
Tell your partner or friend about your savings goals so they can help keep you on track.
The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person’s particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs.