The rising cost of living can be quite a stressor for anyone.

According to Compare the Market’s new Household Budget Barometer, over a quarter of Australians (26 per cent to be precise) are grappling with the reality of seeing their hard-earned savings dwindle away.

If you've felt the tightening grip of your budget, take a deep breath, and remember you're not alone.

Many Australians find themselves grappling with various money problems, ranging from mounting debt and inadequate savings to the increasing cost of living. Source: Pexels

Around 49 per cent of Aussies are leaning on the comforting cushion of their savings to manage mounting essential day-to-day expenses.

Stephen Zeller, a money expert at Compare the Market, shared some worrying figures: 'A $500,000 variable mortgage holder has already seen an extra $1,209 added to their monthly repayments since the RBA started chasing its inflation target in May last year.'

That's roughly the cost of 60 slabs of top-notch Aussie beer! And we're not even tackling the issue of those pesky rising electricity prices.

Zeller cautions, ‘On top of that, we’re expecting electricity price hikes of up to 25 per cent for those on default plans, when the new Default Market Offer and Victorian Default Offer take effect on 1 July.’

Daily living has become a matter of tightened belts and worried glances, with a whopping 94 per cent of Aussies already confessing to feeling the pinch, according to the poll.

Effects of these rising costs appear to vary across generations. Gen X and Millennials are stressing over escalating mortgage repayments.

Gen Z, not to be left out, are losing sleep over car insurance premiums skyrocketing quicker than a kangaroo on a trampoline.

Meanwhile, for those born between 1946 and 1964, it's the steadily climbing healthcare costs that are becoming a concern.

These financial challenges often lead to stress and financial insecurity. Image by Pixabay

Shockingly enough, almost half of Aussie residents (45 per cent) haven't looked for better deals in the past 12 months.

Providing some light at the end of this seemingly endless tunnel, Zeller explained , 'Lower-income earners were less likely to shop around for better deals, despite standing to gain more from the process than people with larger pay packets to spend.'

Key Takeaways

• More than 26 per cent of Australians reported that their savings had gone backwards due to escalating living costs.
• Almost 50 per cent of those surveyed stated they weren't able to save as they usually would, as they had to rely on their savings to afford necessities.
• Despite these rising costs, nearly half of the respondents admitted they hadn't sought better deals or alternatives to save money over the past year.

Tips that could help battle money problems​

Managing finances effectively is a common challenge many individuals face. By implementing these strategies, you can begin to make positive changes, improve your financial well-being, and work towards a more stable and secure financial future.

1. Create a budget to track income and expenses: Establishing a budget is essential to gain a clear understanding of your financial situation. List all sources of income and track expenses to identify where your money is going.
2. Cut back on unnecessary expenses: Review your spending habits and identify areas where you can reduce costs. Look for ways to trim expenses and find more affordable alternatives.
3. Build an emergency fund for unexpected costs: It's crucial to set aside money in an emergency fund to cover unforeseen events like medical bills, car repairs, or job loss.
4. Prioritise and manage debt strategically: If you have debt, develop a plan to manage and pay it off strategically. Start by organising your debts, prioritising those with higher interest rates or smaller balances for faster repayment.
5. Seek professional advice for personalised financial guidance: If you're struggling with money problems or need expert guidance, consider consulting a financial professional. Their expertise can assist you in making informed decisions to improve your financial well-being.

Lean on the knowledge that we're all in this together, members. We are known for our resilience and ability to bounce back! So here's to being savvy and showing these rising costs who's boss!

 

[Suzanne rose]

I worked for many years , paid off my house and saved a bit for a rainy day.
At 59 I thought I still had many years of my working life let . How wrong I was , with negligent surgery and severe problems from this putting me off work I leaned on my savings, my long service leave and then my small ammount of super .
I'm now 61 and no better and never thought that was how my working life would end.

I tell my kids to try and put away for that rainy day but how can they with the ammount they need for today's mortgages.

I look at my situation and think where would we be if we were still paying a mortgage or rent ?

We don't think of these situations until we are in them .

 

[IAN3005]

I have done all the things but continue to go over $850 into my savings each month. That's eating one meal per day at $2.00

 

[Gsr]

We are barely managing on our part pensions and my income from working part time. We are lucky enough to own our home after years of scrimping to pay it off as soon as we could. However, the bills just keep coming, between our medical fund, council rates, which are going up by several hundred dollars each year with nothing to show for it but more council incompetence and pay rises for mayor and councillors, water rates, ever rising energy prices, car registrations and insurances and maintenance, house and contents insurance, fuel costs, the list is endless. It is a real juggling act working out what has to be paid each fortnight and what can maybe wait til the next fortnight. We pay our bills first so sometimes there is very little left for food, so that fortnight we eat whatever is still in the freezer and cupboard and top up our fruit and vegetable needs. I really don’t know how people who are paying rent survive. I would like to retire sometime this year but the way things are going I doubt it will be possible. My hubby has been retired since 2016 due to health issues. We don’t have a lot of super as a lot of our working lives super wasn’t paid. We have some shares and have had to resort to selling some of them a couple of times a year to supplement our incomes. We could sell our home and move to a smaller one but would like to stay in it and have some time to enjoy it before we sell it. It makes me laugh when people suggest the need to save money, they obviously have no idea how little money some people have to live on.

 

[Lynjw]

The rising cost of living can be quite a stressor for anyone.

According to Compare the Market’s new Household Budget Barometer, over a quarter of Australians (26 per cent to be precise) are grappling with the reality of seeing their hard-earned savings dwindle away.

If you've felt the tightening grip of your budget, take a deep breath, and remember you're not alone.

View attachment 23972

Many Australians find themselves grappling with various money problems, ranging from mounting debt and inadequate savings to the increasing cost of living. Source: Pexels

Around 49 per cent of Aussies are leaning on the comforting cushion of their savings to manage mounting essential day-to-day expenses.

Stephen Zeller, a money expert at Compare the Market, shared some worrying figures: 'A $500,000 variable mortgage holder has already seen an extra $1,209 added to their monthly repayments since the RBA started chasing its inflation target in May last year.'

That's roughly the cost of 60 slabs of top-notch Aussie beer! And we're not even tackling the issue of those pesky rising electricity prices.

Zeller cautions, ‘On top of that, we’re expecting electricity price hikes of up to 25 per cent for those on default plans, when the new Default Market Offer and Victorian Default Offer take effect on 1 July.’

Daily living has become a matter of tightened belts and worried glances, with a whopping 94 per cent of Aussies already confessing to feeling the pinch, according to the poll.

Effects of these rising costs appear to vary across generations. Gen X and Millennials are stressing over escalating mortgage repayments.

Gen Z, not to be left out, are losing sleep over car insurance premiums skyrocketing quicker than a kangaroo on a trampoline.

Meanwhile, for those born between 1946 and 1964, it's the steadily climbing healthcare costs that are becoming a concern.

View attachment 23973

These financial challenges often lead to stress and financial insecurity. Image by Pixabay

Shockingly enough, almost half of Aussie residents (45 per cent) haven't looked for better deals in the past 12 months.

Providing some light at the end of this seemingly endless tunnel, Zeller explained , 'Lower-income earners were less likely to shop around for better deals, despite standing to gain more from the process than people with larger pay packets to spend.'

Key Takeaways

• More than 26 per cent of Australians reported that their savings had gone backwards due to escalating living costs.
• Almost 50 per cent of those surveyed stated they weren't able to save as they usually would, as they had to rely on their savings to afford necessities.
• Despite these rising costs, nearly half of the respondents admitted they hadn't sought better deals or alternatives to save money over the past year.

Tips that could help battle money problems​

Managing finances effectively is a common challenge many individuals face. By implementing these strategies, you can begin to make positive changes, improve your financial well-being, and work towards a more stable and secure financial future.

1. Create a budget to track income and expenses: Establishing a budget is essential to gain a clear understanding of your financial situation. List all sources of income and track expenses to identify where your money is going.
2. Cut back on unnecessary expenses: Review your spending habits and identify areas where you can reduce costs. Look for ways to trim expenses and find more affordable alternatives.
3. Build an emergency fund for unexpected costs: It's crucial to set aside money in an emergency fund to cover unforeseen events like medical bills, car repairs, or job loss.
4. Prioritise and manage debt strategically: If you have debt, develop a plan to manage and pay it off strategically. Start by organising your debts, prioritising those with higher interest rates or smaller balances for faster repayment.
5. Seek professional advice for personalised financial guidance: If you're struggling with money problems or need expert guidance, consider consulting a financial professional. Their expertise can assist you in making informed decisions to improve your financial well-being.

Lean on the knowledge that we're all in this together, members. We are known for our resilience and ability to bounce back! So here's to being savvy and showing these rising costs who's boss!

Impossiblr

 

[IAN3005]

We are barely managing on our part pensions and my income from working part time. We are lucky enough to own our home after years of scrimping to pay it off as soon as we could. However, the bills just keep coming, between our medical fund, council rates, which are going up by several hundred dollars each year with nothing to show for it but more council incompetence and pay rises for mayor and councillors, water rates, ever rising energy prices, car registrations and insurances and maintenance, house and contents insurance, fuel costs, the list is endless. It is a real juggling act working out what has to be paid each fortnight and what can maybe wait til the next fortnight. We pay our bills first so sometimes there is very little left for food, so that fortnight we eat whatever is still in the freezer and cupboard and top up our fruit and vegetable needs. I really don’t know how people who are paying rent survive. I would like to retire sometime this year but the way things are going I doubt it will be possible. My hubby has been retired since 2016 due to health issues. We don’t have a lot of super as a lot of our working lives super wasn’t paid. We have some shares and have had to resort to selling some of them a couple of times a year to supplement our incomes. We could sell our home and move to a smaller one but would like to stay in it and have some time to enjoy it before we sell it. It makes me laugh when people suggest the need to save money, they obviously have no idea how little money some people have to live on.

tell me about it. You will need at least $3,000,000 to retire and live basically.

 

[Lynjw]

tell me about it. You will need at least $3,000,000 to retire and live basically.

It’s impossible to survive with these price hikes.

 

[IAN3005]

It’s impossible to survive with these price hikes.

you learn to live on the smell of an oily rag. I keep a detailed computerised list of what I have bought each month and work of what it costs me per day.. so far I spend $2.00 a day. I only eat 1 x a day. it's the non-controllable that cost the most. I wash the clothes in cold water once a month. No going out anywhere other than grocery shopping 1x a month. The petrol costs $20 every 2 months. The rent is the killer, $2,760 a month... the pension $2448 a month. All up I'm $1282 behind the eight ball.