An RACQ survey found rent and mortgage repayments, followed closely by food and bills, had the biggest impact on household budgets, with 40% of Queenslanders saying they were not confident in their financial position and had no savings.

While most Queenslanders said they were spending below the amount they could afford across the categories of mortgage/rent, bills, groceries, transport and social activities, those aged between 25–34 and 65–74, on average, were spending more than they could afford.

Also concerning was that a third of all respondents said they used their credit cards to pay everyday expenses.

RACQ Head of Banking Product and Operations Will White said it was a good time to assess your financial position to see what could be done to ease the financial burden.

“Using an online budget planner, like the one on RACQ’s website, can be a good place to start when assessing your finances,” Mr White said.

“Look at your income and add up all your expenses.

“Consider if you still need your credit card. Credit cards often have annual fees and if you’re not paying it off at the end of the month, you’ll be hit with interest.

“Consider other options like putting aside some savings in an emergency fund or put bigger purchases on an old-fashioned lay-by.”

Mr White said it was encouraging that 64% of people surveyed had made changes to combat cost-of-living pressures.

“The most common changes people said they were making was cutting back on discretionary expenses such as luxury items, eating out and takeaway, opting for cheaper food brands, budgeting and using discounts,” he said.

“However, people were least likely to change providers, work more and add additional income, pay down debt, and walk more and drive less.

“Assess your spending habits by sitting down and highlighting the unnecessary purchases you make each day on your bank account statement.

“This will help you determine your spending triggers or what you can cut down on.

“Simple things like cancelling subscriptions or memberships you’re not getting value from or switching to cheaper food brands can add up.

“Shop around for deals on essentials such as petrol, phone and internet and contact your service providers to ask if you’re getting the best deal.

“RACQ members can access a range of discounts, so it’s always worth checking before making a purchase.”

Mr White urged families experiencing financial hardship to ask for help.

“We urge any of our members who are overwhelmed by their financial situation to contact us as soon as possible, so we can look for ways to help,” he said.

“You can also reach out to the National Debt Helpline – a free, confidential and independent financial counselling that can help you manage your debts and get your finances back under control.”

RACQ Bank helps Queenslanders get ahead

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.