March 27, 2017
Nearly one in four Australians worry about their finances every day, according to new research.
Mortgage Choice and Core Data's Evolving Great Australian Dream whitepaper has revealed 24.2% of Australians worry about money on a daily basis.
Another 24.4% of respondents said they worry about their finances on a weekly basis, while a further 13.9% said they worry on a monthly basis.
“The finding that nearly a quarter of all Australians worry about their finances daily is a startling statistic,” Mortgage Choice chief executive officer John Flavell said.
“That said, with the cost of living increasing and wage growth stagnating, I am not surprised to hear that Australians are worrying about their money.
The Australian Bureau of Statistics' latest Wage Price Index found wages grew just 1.9% between the December 2015 quarter and the December 2016 quarter, which is incredibly low by long-term standards.
“And while wage growth is stagnating, property prices continue to rise, with data from CoreLogic showing property values across the combined capital cities have risen 11.7% over the 12 months to March 2017.
“In Sydney, property values are up 18.4% over the 12 months to March, while Melbourne property values have soared 13.1% over the same time period.”
All these things considered, Mr Flavell said he could see why Australians worry about their finances regularly.
“Looking ahead, as property prices continue to rise, along with the cost of food, gas and electricity, childcare fees and transportation, I would expect to see an even greater proportion of Australians stating that they worry about their money on a frequent basis,” he said.
“If people want to stop worrying about their finances and take charge of their financial situation, the best thing they can do is act strategically.
“In the first instance, they should draw up a budget that includes all of their incomings and outgoings each pay cycle. The more detailed the budget is, the better off they will be. By having a detailed budget, people will be able to easily identify where they may be able to cut back.
“While budgeting isn't always an easy or pleasant task, it is certainly a lot better than worrying about your finances on a regular basis.
“If, after creating a budget, people still find they worry about their finances frequently, the best thing they can do is ask for professional assistance.”