The higher cost of living and the ongoing economic impacts of COVID-19 have made it challenging for many Australians to save as much as they’d want to. A recent NAB Wellbeing Survey found that nearly 75 per cent of Australians are trying to save but finding it hard due to debt repayments, bills and everyday expenses. More than 40 per cent of the surveyed adults reported a dip in their personal savings in the past three months. Furthermore, the survey found that one in 10 Australians don’t have $2,000 in emergency funds, which some social organisations use to measure financial health.
The survey results indicate Australians have strong intentions to save, but household expenses and everyday activities prevent them from building a regular savings habit. If you’re finding it difficult to put away money towards your financial goals, an automatic savings plan could help you improve your financial wellbeing.
An automatic savings plan puts your monthly savings on auto-pilot by directly transferring a part of your pay into your savings account. With the right financial planning, you can work out the amount you can afford to put into savings without cutting into the money you need to cover your essential expenses.