How are your money habits?
Have you become more cautious with your money this year?
A new survey from RateCity.com.au has revealed 42 per cent of Australians believe COVID-19 has made them more proactive about how they manage their money.
I’m surprised this figure isn’t higher!
However, young Australians in particular are taking the bull by the horns – 61 per cent of 18 to 34-year-olds surveyed felt more proactive about managing their money – the highest percentage according to age bracket.
How has COVID-19 changed the way you manage money?
It has made me:
|Age||More proactive||Less proactive||No change|
Source: RateCity.com.au, Survey of 1009 people
The survey results support the latest findings from APRA, the RBA and the ABS – that Australians are saving, not splurging during COVID-19. Data from March 30 to July 30 shows:
- APRA figures show Australians have an extra $64.41 billion more deposits in the bank compared to the start of COVID-19.
- RBA data shows Australians credit card debt accruing interest has fallen by $5.5 billion since the start of COVID-19, a drop of 20 per cent.
- ABS statistics show 113,546 people have refinanced their home loans during COVID, totalling $53.7 billion.
Sally Tindall, research director at RateCity.com.au, said for Australians still lucky enough to have their job, social distancing has been key to helping them save.
“Many Australians have used their time in lockdown to clear credit card bills, refinance their home loans and build up a savings buffer,” she said.
“For a lot of young Australians, their travel plans have gone up in smoke, their night life has been reigned in and, as a result, they’ve got spare cash to put towards their first car or home.
“People who take the time to get their finances in order now will be better equipped to take on the financial challenges of tomorrow.
“JobSeeker and JobKeeper reductions are set to squeeze millions of household budgets from today. If that’s you, it’s worth talking to a financial counsellor to get your finances into the best shape possible as your income drops,” she said.
4 tips to be more proactive about money
- Set some goals – whether you are saving for a house deposit, a new car, or an emergency fund, it helps to set a goal for how much you want to save every week/month.
- Check your rates – check to see what interest rate your bank is offering on your savings, credit card and home loan, then shop around to make sure you’re getting the best deal.
- Clear high interest debts – whether you’re saving for a house or preparing for a drop in your budget, the last thing you want it to shell out hundreds of dollars in interest to your credit card provider.
- Plan for a rainy day – having an emergency plan can help you feel in control of your finances.
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on
If you’re wondering what will happen to property in 2020–2021 you are not alone.
You can trust the team at Metropole to provide you with direction, guidance and results.
In challenging times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.
If you’re looking at buying your next home or investment property here’s 4 ways we can help you:
- Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! This will give you direction, results and more certainty. Click here to learn more
- Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property. Click here to learn how we can help you.
- Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
- Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.