Australian household savings have increased; have yours increased? what are your best savings hacks?
Posted by: TaylorCS
28th Jan 2021 10:41am
After what was a horrible year financially for most (and still is for many), it seems Australian's have refocused and doubled down on their savings, trying to ensure financial security in the wake of so much uncertainty.
Research from the bureau shows that the average household savings ratio rose from 6% in March 2020 to an astounding 20% in June 2020.
Have you been focusing more on saving lately? And if so, what are some of your best savings hacks?
Research from the bureau shows that the average household savings ratio rose from 6% in March 2020 to an astounding 20% in June 2020.
Have you been focusing more on saving lately? And if so, what are some of your best savings hacks?
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Comments 44
Ziah
I don't understand how savings are supposed to increase, when we are having to pay 20-30% more at the supermarket, have to pay delivery fees for groceries and medication and pay a hell of a lot more for parcel delivery by AusPost. Our household bills have increased, on average, 25% since covid, but our income has gone down since hubby had to change jobs to a lower-paid position for his mental health. Who on earth has more money to save?
Robert32087693
Bit. I am somehow financial sound but, I had my struggles along the way especially at the start of the pandemic. I never knew I could spend my free time taking surveys and now I am earning bit of lunch money.
One of my saving hacks would be buying shares, bonds and ETFs which give higher return than typical savings account
capfantastic
We are meant to be spending to keep the economy going. That is the reason for the economic support. However I understand that people are scared about how they will pay when the support ceases. That is why we are trying to be more economical. Having said that the most important thing is to not feel deprived. Keep treating yourself, no matter how small, and you will still be able to stockpile a little bit for the future. Remember we can’t take it with us, so don’t worry.
LokiAura
So true. I agree about not depriving yourself. I buy That's Life and Take 5 every week and allow myself a treat when I buy the grocerries. There's nothing worse than depriving yourself - it just feels as though the battle is harder when you do.
Homie
Yes! I find it very hard to live afford groceries. Living week to week. I try to buy cheap brands but then I struggle with how good that is for the environment and all. I don’t have hacks do looking forward to reading some on here!
LokiAura
Have you found that some 'premium' brands work out cheaper than generic brands for some items?
Jardine31663735
Try not to spend as I realised online shopping can easily make you buy anything and everything that you don't need.
LokiAura
So true - it is easy to keep adding things to your 'cart' and not realise how much damage you've done until you hit the checkout.
Joh :)
Well my savings still made it to the unhealthy balance of zero ! I'm a divorced mum with 2 kids - 10 and 19 and currently live in emergency housing due to not being able to work. The last 8 years i have had several chronic conditions which are a permanent part of my life.
Have been rejected for the pension due to a rare illness that Centrelink cant compute so i am on the New Start Allowance but don't have to work due to my "disability". Mmmmmm. Anyway i was lucky enough to get the Job Seeker payments and i thought :awesome", i might be able to save some money, but Nope! It has how ever allowed me to pay the never-ending bills - which i am really grateful for.
I am really scared again when the Job Seeker payments goes as i will be back to the New Start Allowance which i receive about $40 a day to support my kids and i. Lucky my 19yr year old lives with his father now (x-husband) but my 10 yr old's father (separated when she was 6months) feels that he doesn't have to help financial due to the DVO i have on him, so he doesn't work (47) and lives with his mum.
Anyway, i did try to cut a long story short but i just wanted to explain how the other 1/2 are living due to COVID. So many people lost their jobs and are still out of work. Many may be receiving the Job Keeper or Job Seeker but that is their only income and with rent ridiculously expensive in many parts of Australia not to ment electricity/utilities, mortgages food etc.......... it has brought thousands of people under the poverty line....
My question is "what is the average household"? and how did the "bureau" come up with their figures. ?
Joh :)
whow that is tough LokiAura
LokiAura
Yes it is hard. This week a trip to the optometrist proved how hard things can be financially. After 12 years since my last appointment and pair of glasses it was time for a check up and new glasses. I only have access to one optometrist and the only way I could pay up front was to use my credit card which I finally paid of 2 months ago. My new glasses set me back $716 but because I need them I wasn't given much option.
LokiAura
Gosh Centrelink really do make it hard for people and it isn't fair. The rejection letter in response to your appearance is out of order and totally irrelevant.
Joh :)
Seems that you are struggling financially too. Love to hear some of your savings hacks :)
Joh :)
Hi LokiAura,
Thankyou for your reply. Yes I have tried twice but it seemed a bit dodgy as the Centrelink Rejection Letter stating info from the first attempt plus also info about the way i looked, walked in the 2nd interview. None of it was true and impossible for me to do (proof also given that their response was impossible) could go on and on but to tedious. ) I feel very ignored by centrelink and really, i have just given up on them. Too much stress.
LokiAura
Hi Joh,
wow you've really had it tough. Regardless of a DV order your ex should be paying child support. Have you only applied once for the Disability Support Pension? It took me a couple of attempts before my application was successful.
ab
I've been managing my income with the use of a spreadsheet I put together some 30 years ago during the time I had a mortgage to worry about. Even though I don't have a mortgage any longer the spreadsheet has remained and now tracks my expenditure in retirement. It was very simple at first, but became quite sophisticated over the passing years.
The spreadsheet tracks my revenue from all sources and how I spend it each month and then graphically projects that over the year.
By reviewing it I could tell what were necessary expenses and what were simply nice to have. As I consequence, if I was living beyond my means it could point to what could be cut if necessary and what savings I could expect by eliminating them.
My views on credit cards are that they are great as long as they do not cost you anything...no annual fees, you pay the full amount due at the end of every month and there is an interest free period (usually 55 days). Apply that and you're essentially using someone else's money. You should carry a 'float' equal to the maximum amount of credit, ie if your credit limit is $10K, that's how much you should always be able to access at any one time to repay the maximum your credit statement could be for that month.
While we're talking about credit cards...you only need one card, not two or three!
If you're an impulsive buyer never carry your credit card with you.
With me, I used to and still do, give myself a fortnightly cash budget to cover lunches, coffees and other incidentals. If I didn't spend that budget for that fortnight, I'd put the remaining amount in a kitty. You'd be surprised just how quickly that kitty grows and funds your next holiday. :)
I guess that's my cents...
LokiAura
Sounds pretty good to me and very rewarding. It makes all the saving/being careful with money well worth it. Have a great weekend :)
ab
Thank you LokiAura, :) yeah the kitty can become anything you want, a nice little slush fund to treat yourself or a loved one, cover a 'rainy day' event you didn't see coming, or as I suggested fund a much deserved holiday...to reward you for all the self sacrifice people often put into reaching a target. Have a great weekend. :)
LokiAura
Really insightful contribution and very interesting way of doing things. I like that you put the remaining amount in a kitty - good idea :)
ab
Thank you Homie, you're very kind to say so. Have a great weekend. :)
Homie
You’re awesome! They should teach this in schools .
Homie
You’re awesome! They should teach this in schools .
Hazel Mayce
I got a full-time job in 2020 and I tried to be smarter with my money later in the year.
In my CommBank app, I made separate savings account and set fixed monthly transfer for my savings. Then, another savings account for family fund/expenses. Anything left will be for myself to spend moderately.
Also, for my groceries, I found that meal planning and prepping help me stay control mg expenditures on unnecessary items.
LokiAura
Good points - I agree with you about meal planning really makes a difference to the overall spend on grocerries.
Yqsymnx
If, like all the sheep, you have a mortgage, you would likely not have savings and using what's available to pay down this debt.
Interest rates are not good enough for investment purposes, so you would get better 'bang for your buck' by paying the mortgage.
Unless that is of course you foresaw the shares like GameStop or JB HiFI
Leanne6
Savings?
What's that?
I live paycheck to paycheck
awilson19
never too much savings going in here with the amount of kids in this household hahaha
suzukisue
Yes, and for the first time in years, we finally have got some savings!! I'm not sure that I have any savings hacks, I just try to put a little away each week and if we have any money left over in our transaction account by the next pay day, I transfer that to our savings too, although this is a rarity!
LokiAura
Good idea :) it all helps.
Bexbe
Automate weekly savings into separate accounts and try to forget they exist.
LokiAura
Good idea :)
D_D
Amex discovery card attached to qantas frequent flyer. Free card if you pay in full each month. Convert points to holidays.
LokiAura
Cut back on take away coffees, use cash - it is easier to track where the money has been spent, recycle cans/bottles - it really does add up each month and overall for the year - for the month of January I got $50.40 for recycling. Ask family/friends/neighbours if you can have their cans/bottles if they don't recycle them. Supermarket catalogues usually go through cycles where certain products are on promotion every couple of weeks and there are normally 2 set prices eg Nescafe sachets may be on special one fortnight for $4.65 then 2 weeks later you might find them for $3.15. Keep a separate account from savings/transaction to put aside a certain amount of money every week and don't touch it. It certainly adds up by the end of the year.
LokiAura
Hi takogirl - I live in country NSW. Where I live we have a recycling machine - 'Return & Earn' so many locals use it and people from near by areas come and use it as well.
Ozgirl
You must be in SA or NT to be able to recycle cans etc.. So lucky!
LokiAura
Wow that's an awesome amount to get from recycling :) I'm impressed and inspired :)
des
I do the same always loads of way to save money. We make about $100 a month just on recycling bottles and cans. Plus we get more exercise around the suburb by taking bags with us and picking up discarded cans and bottles ;)
Samuel31998694
Using cash not cards
Jazza1991
I only buy new products when they are needed not when I want them. I put my spare notes in an envelope and by the time Christmas comes around, I hopefully have a nice amount to spend on presents or food.
LokiAura
Wow well done! That's good.
Jazza1991
Probably around $300 is the most I have saved that way.
LokiAura
What's the most money you've ever ended up with doing that?
chicababe
yes i saved a nice little sum of coins in one of those money tins you buy from the gift shops ,
PGS
Haven't been focussing on saving, just not spending as much.