A new report finds that 1 / 4 of Australian households save less than A $1000, and 1 / 10 of households spend less than a month's income or even overspend. (Sydney Morning Herald)
According to the Sydney Morning Herald, a new report commissioned by ME Bank found that 1 / 4 of Australian households saved less than A $1000 and 1 / 10 of households would spend less than a month's income or even overspend.
It is reported that in June, the (Household Financial Comfort) survey of 1500 Australian households on household financial comfort found that in the first half of this year, Australian deposits fell slightly by more than 10 percent a month.
In the first six months of the year, the number of households spending more than a month's income was 11%, an increase of 3%. As many as 41% of households spend all their monthly income, but no savings are spent.
The data raised concerns about the (Reserve Bank) and (Treasury) of the Treasury, as more Australians need to overspend to meet rising costs of basic living clothes such as health and education, which are rising faster than inflation.
Orton (Jeff Oughton), an adviser to ME Bank, said more households in Australia would be under greater financial pressure if lending rates were to rise in the coming year and the international trade war would have a huge negative impact. At this stage, some Australian families use savings to meet their immediate needs, but some families will run out of savings.
In the past six months, more than 54 percent of households saved more than A $10000, down from 62 percent in the same period in 2015, and 26 percent saved less than A $1000, down from 30 percent in 2016, according to the survey.
In addition, 45 per cent of households said that more than 30 per cent of monthly disposable income needed to be repaid, compared with the Australian Household, income and Labor Dynamics report published last week, (The Household, Income andLabour DynamicsinAustralia, The proportion of HILDA in the same aspect is higher than that in the control group.
Moreover, the survey found that single people and couples under the age of 30 had the most significant decline in financial comfort, by 11 percent. Self-employed businesses, including full-time freelancers and builders, have seen the most significant improvement in financial comfort, up 17%.