3 in 4 Aussies in same or worse financial position than a year ago – new data reveals

Key takeaways

Most Australians aren’t moving forward financially. Around 70% say their situation has either stalled or gone backwards over the past year.

Many households have little financial buffer left. Even a small unexpected expense can now create real stress.

Cutting costs helps, but it’s not enough on its own. Long-term financial planning is becoming more critical in this environment.

If it feels like many Australians are running hard financially but not really getting ahead, the latest data suggests that’s more than just a perception.

A growing number of households are finding themselves stuck in place, or worse, slipping backwards, despite their best efforts.

After several years of rising living costs, interest rate increases and economic uncertainty, the financial buffer many relied on has largely been eroded, leaving little room to absorb further shocks.

Australians already struggling to get ahead financially are facing fresh pressure on household budgets, according to new research by Finder.

A Finder survey of 1,011 respondents revealed nearly 3 in 4 Australians (70%) say that their finances have either plateaued or declined.

More than 2 in 5 (42%) remain financially static, while 28% have seen their situation actively deteriorate.

This represents a significant 15.2 million individuals who say their finances have failed to improve over the past 12 months.

Only 1 in 4 Australians (26%) feel financially stronger than they did last year.

Sarah Megginson, personal finance expert at Finder, said many families are heading into this fresh economic storm with empty pockets, having had no chance to replenish their savings after years of financial strain.

She said:

“Whether it’s a sudden rent hike or an emergency dental visit, even a single unplanned expense is enough to tip many households over the edge.

A renewed surge in inflation brings the very real threat of prolonged high interest rates, or worse, further hikes that could add hundreds to monthly mortgage payments.”

Megginson said now is time to review your budget and look for opportunities to save:

"Households should double check every expense to try and find savings, specifically by switching service providers. You can end up paying less for the exact same service.

Finding small wins on energy, internet and insurance can put thousands of dollars back into a family's pocket over a year and give you a sense of control that you are moving things in the right direction."

Final note

About Dorian Traill Dorian is a Senior Wealth Planner at Metropole and helps develop a tailored, individualised wealth plan specifically for the client’s circumstances. Dorian’s career in property and finance started in 1997 as a sales agent in Brisbane before he switched to mortgage broking. He has been advising clients on how to successfully grow their wealth through property for a number of decades.