Concerned about money? You’re not alone. The Australian Securities and Investment Commission’s (ASIC) Australian Financial Attitudes and Behaviour Tracker offers insight into the concerns Australians have about money and what they’re doing about it.
Around 40% of Australians don’t feel confident about managing their money, with 36% finding the process stressful and overwhelming. Younger people, including those with children, have higher levels of financial stress than older Australians.
Uncertainty about where your money is going, or when, may increase stress. Having a plan, such as a budget or financial plan can help you. Clearly breaking down and understanding your income and expenses, allows you to take greater control of your money and identify areas where you can make improvements.
The number of Australians struggling to save is growing with 21% reporting that they did not save any money over the last six months. Those renting, found it even harder with 30% reporting being unable to save.
If you’re struggling to find a way to save, consider cutting back on non-essential expenses such as unused memberships, subscription TV services or even buying lunch at work. It’s also a good idea to review your health, home and car insurances, phone, internet and power plans every couple of years to ensure you’re getting the best deals.
Just over 40% of Australians have a short to medium-term financial plan (3-5 years), while only 25% have a long-term financial plan (15-20 years). However, 60% reported monitoring their progress in the last six months.
We all have different goals in life and various levels of experience in managing our finances. Monitoring progress is important, but to really take control of your finances you need a clear plan to achieve your goals. Think about long-term financial goals as a series of smaller short to medium-term goals so it is easier to monitor and manage.
More than 70% of Australians report that they don’t understand the concept of risk vs return when it comes to investments and only 40% understand the idea of investment diversification.
Understanding investing will help you make better decisions with your money. ASIC's MoneySmart website offers clear explanations about a range of key financial topics.
If you’re looking to learn how to better manage your money, join us at one of our free financial fitness info sessions. Book now.
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