1 in 10 Aussies don’t have an emergency fund
Let’s face it. Growing savings isn’t always easy. There’s always a bill waiting to be paid, and well, spending is always more fun than saving.
But there are two great reasons to have a stash of cash set aside in a savings account.
First, it lets you earn interest. That’s money for nothing – and who doesn’t love that?
In addition, having personal savings lets you tick off a personal bucket list (overseas vacation anyone?) while still letting you pay unexpected bills when they arise.
So, it’s worrying to come across research by Compare the Market showing one in ten Australians have no money in their emergency fund for a rainy day[1].
It’s not that we’re all flexing our spending muscle.
Australia’s household saving ratio, which shows how much of our disposable income we’re tucking away, has plunged from a high of 24% during the pandemic, down to a wafer thin 0.6% at present[2].
That’s well below pre-pandemic levels of around 5%3, and while it’s a sure sign the cost of living crisis is eating into household budgets, the lack of spare cash is leaving many Australians vulnerable to unexpected bills.
Time to get serious about saving. And no, it doesn’t have to mean living on baked beans, or busking on a street corner.
Check out our three easy-as ways to grow your savings.
- Try ‘loud’ budgeting
We all know budgeting is good for us. It lets us balance the books so we’re spending less than we earn, leaving money left over to grow savings.
‘Loud’ budgeting goes a step further.
It’s all about proudly telling everyone you’re sticking to a budget, and it can be a great way to avoid the temptation of blowing savings on unplanned costs like, say, a big night out.
Give it a try. Chances are you’ll find plenty of mates are trying to save too.
- Know what sort of saver you are
Matching your savings account to your savings habit is a smart move.
Whether you’re a disciplined regular saver or someone who occasionally needs to dip in for unexpected bills, Easy Street’s Flex Saver* has you covered.
The Flex Saver gives you the flexibility to access your money when you need it, without interest or fee penalties, while still earning a great rate of interest on all balances up to and including $3 million. It’s the ideal account whether you’re building an emergency fund, saving for something special, or simply making the most of your money day to day.
High interest that’s always on—no hurdles, no reminders, no hoops. Simply open a Flex Saver, add money anytime, then earn interest on every dollar up to $3 million. It’s interest you can count on.
- Set yourself a goal to aim for
It can be much easier to skip a takeout lunch at work when you have a mental picture of yourself lazing on a beach in Bali.
If that sounds like you, set a goal to work towards.
Easy Street’s savings planner is a great tool here. It lets you work out how much you can grow your savings based on different amounts and terms. Play around with the numbers to see what works for you.
Use the Easy Street mobile banking app to track your savings on the go. Seeing how much your savings have grown can help you stay motivated when you’re tempted to spend.
For more ideas on growing savings, call the Easy Street team on 1300 12 14 65.
[1]https://www.comparethemarket.com.au/news/1-in-10-aussies-have-no-money-in-their-emergency-fund-new-survey-finds/
[2]https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/jun-2024