Families across Australia are being stretched to their limits as the rising costs of living are leaving many households broke.
Alarming figures from a recent Compare The Market survey reveals that 57 per cent of families could cut back monthly spending by only $500 if faced with financial disaster.
And 25 per cent of those are down to their bare bones only managing to scrape together $200, The Advertiser reported.
Families across Australia are being stretched to their limits as the rising costs of living are leaving many households broke
Alarming figures from a recent Compare The Market survey reveals that 57 per cent of families could cut back monthly spending by only $500 if faced with financial disaster
The survey, which questioned 1,000 adults, also revealed 70 per cent of households had monthly expenditure over $3,000.
With the national Australian wage around $80,000, more and more adults are now finding themselves hard up against the wall.
Australia’s ever-surging property market has only added to the problem, leaving renters struggling to make ends meet.
But Compare The Market spokesperson Abigail Koch believes inflation across the country isn’t the sole reason for people’s money woes.
‘People have a certain expectation for quality of life and are spending on a broader array of things than in the past,’ Ms Koch said.
‘Cutting back seems harder to do.’
Australia’s ever-surging property market has only added to the problem, leaving renters struggling to make ends meet
The survey found the first thing to get the chop when cutting back was regularly eating out, with 87 per cent of people suggesting they’d start eating at home despite the rich cafe breakfast culture across Sydney and Melbourne
She has also urged Australians to be smarter with their money and for families to do their homework before parting with their cash for daily necessities.
‘A phone call to an energy retailer or using comparison sites might get a better deal; and if you’ve been paying a mortgage off for a few years there are probably better options out there for you.’
The survey found the first thing to get the chop when cutting back was regularly eating out, with 87 per cent of people suggesting they’d start eating at home despite the rich cafe breakfast culture across Sydney and Melbourne.
Childcare was deemed to be the least compromisable with only 33 per cent willing to look for cheaper options.
In a bid to protect Australians from any future unseen problems, Ms Koch suggests getting income protection insurance for maintaining financial stability.
‘It would be another expense but something that will protect you,’ she said. ‘Assess whether it’s right for your situation and, if not, build that savings pot.’