September 9th 2024.
According to new research, a significant number of Australians have been hit hard by unexpected financial crises in the past year. The Finder survey revealed that 18% of respondents, which translates to approximately 3.8 million people, experienced a financial emergency. On average, these incidents cost individuals $5130, adding up to a staggering $19 billion nationwide.
It's no secret that many Australians are struggling with the rising cost of living, and this has taken a toll on their emergency funds. In fact, the survey shows that 40% of Australians have less than $1000 in savings, leaving them vulnerable to any sudden expenses. For instance, a $5000 bill can cause severe financial damage, as evidenced by Finder's data.
Sarah Megginson, a personal finance expert at Finder, expressed her concern about the state of emergency funds in Australian households. She stated, "It's been a tough year for Australians, and many have exhausted their funds trying to keep up with the high cost of living." Megginson further added that financial emergencies are more common than people realize and often require extreme measures, such as sacrificing or going into debt, to manage.
Interestingly, the survey found that women are more likely than men to face unexpected expenses, and the cost is also higher for them. On average, women's expenses amounted to $6428, almost double the average for men, which was $3387. Megginson highlighted the importance of having a budget, especially in the current cost of living crisis. She advised people to reach out to their lenders or providers for support and resources if they are struggling to make payments.
To avoid being caught off guard by financial emergencies, Megginson recommended saving at least three months' worth of expenses. She also suggested looking for opportunities to reduce spending or bills and putting any extra money into a high-interest savings account to build a buffer faster. Additionally, Megginson emphasized the importance of having a side hustle to supplement emergency savings.
In today's fast-paced world, staying updated with the latest news, celebrity gossip, and sports updates is essential. And with the rise of social media, it's become easier to access this information. However, for those who prefer a more private and controlled platform, Finder has launched a WhatsApp channel. This service allows subscribers to receive breaking news and updates without any comments or algorithms, ensuring their privacy and security.
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