Save for a rainy day? For many Australians, that’s becoming an impossible task. With rising living costs and unexpected expenses, millions are unprepared for crises like job loss or medical emergencies. A new survey reveals that nearly two in five Australians can’t save enough to cover three months of essential living costs, putting them at serious risk of financial chaos.
Why Many Australians Struggle to Save for Emergencies
The numbers are eye-opening. Finder’s latest research reveals that 7.9 million people—almost two in five Aussies—lack the emergency savings necessary to weather a sudden financial storm. And it’s not just about the inability to save; for one in five Australians, saving money is a constant struggle. They’re finding it “very difficult” to put money aside each month, with rising living expenses making it harder to keep up.
For many, the idea of setting aside a few months’ worth of living expenses feels like an impossible goal. Yet, without that safety net, one bad break—be it a job loss or health scare—could lead to serious financial turmoil. “One sudden unexpected financial setback—like a redundancy or a health scare—could throw their whole life into financial chaos,” Alison Banney, financial expert at Finder, told 9News.
How You Can Save, Even on a Tight Budget
It’s easy to feel overwhelmed when it comes to saving for an emergency fund, especially when every dollar already feels accounted for. But the good news is that small steps can make a big difference. Banney suggests that even putting away a modest $20 each week can add up over time—more than $1,000 by the end of the year, to be precise. Starting small can feel less daunting and help build the habit of saving regularly.
One of the simplest ways to start saving is by setting up an automatic transfer into a high-interest savings account. This allows your money to grow without you having to think about it, making it easier to save consistently. And with the holiday season approaching, Banney advises trimming unnecessary expenses—canceling subscriptions or finding cheaper insurance—to redirect those savings into your emergency fund.
The Gap Between the Haves and Have-Nots
While the idea of saving for emergencies can be daunting, there’s a noticeable gap between those who have financial security and those who don’t. The average Australian holds around $43,650 in cash savings, yet millions still struggle to make ends meet. This highlights the stark contrast between people who can save for emergencies and those who are living paycheck to paycheck.
The survey data paints a concerning picture, but it also serves as a wake-up call for those who have yet to build up an emergency fund. Now is the perfect time to reassess your finances, set up that automatic transfer, and start saving—even if it’s just a small amount. Building an emergency fund isn’t easy, but it’s one of the most important steps you can take for financial security.
