An alarming 10% of Australians don’t have an extra $2,000 for emergency spending, while another 20% have missed a bill or loan payment in the past three months, according to new research from National Australia Bank (NAB).
This result poses genuine concern as many social impact organisations use $2,000 for an emergency as a measure of financial health.
The problem isn’t so much the lack of motivation to save, but the challenges that come with it. More than 40% reported a decline in savings due to debt, repayments, bills and everyday spending. Wages are also well below the 3.5% inflation rate.
The research also found that one in three people report high stress, with those living in New South Wales and Tasmania the most financially stressed out among all states. In addition, loans from family or friends remain the most common way to deal with financial hardships.
Rachael Slade, group executive for personal banking, said a large proportion of its customers still struggle with loan payments despite economic conditions returning to pre-pandemic levels.
“Australians want to save but actually doing it is another thing because of household expenses and everyday activities,” Slade said. “We encourage customers to look at their income and expenses. Customers can do a budget and then work out how much they’d need in an emergency fund, so they’re not caught out with a surprise bill or an unexpected major purchase.”
