Money tips to lower your household financial pressure

As financial worries mount among Australians, experts give their tips on bringing the pressure down.

Almost half of Australians feel under more money pressure today than they did a year ago, despite the national economy emerging strongly from the 2020 recession.

And cost of living rises sit on top of their list of worries, followed by concerns about paying bills and not being able to save enough.

A new Omnibus survey commissioned for SMARTdaily has found 43 per cent of people say they are suffering more financial pressure than in mid-2020, while only 15 per cent say the pressure has dropped.

It also found a majority of consumers depend on their savings to pay for daily expenses, with people aged 18 to 34 the hardest hit. And losing $75 a week of income would leave more than half of Australians “living on the brink”.

Student nurse Maddison Leuders, 24, “definitely” feels more financial pressure.

“This time last year I was still living at home with my mother and sisters, whereas currently I live out of home with a roommate,” she says.

Student nurse Maddison Leuders has made lifestyle changes to cut costs. Picture: Matt Loxton

“I have to financially plan my weeks ahead because of the expenses. My university contact hours also do not provide me enough time to work as much as I should to comfortably live out of home.”

Leuders has changed her lifestyle to cut costs, wearing extra layers of clothes instead of turning heaters on, meal prepping for an entire week, and “choosing a night in over a night out”.

Beyond Bank national operations manager Sophie Scott-Young says while the economy has bounced back, the complexity of work is taking a toll.

“What was thought to be a new year and a new start has not been the case,” she says.

“Many people who lost their jobs during Covid have found new jobs but maybe not in the same industry and potentially not at the same pay rate they may have previously had.

“People feel like they are working harder but still have the same income coming in, and in many cases expenses have gone up like higher rent and more expensive household goods.”

Import delays and labour shortages fuelled by a reduced overseas workforce has pushed up the cost of some everyday items, Scott-Young says, while rents and home loan sizes have gone up too.

Reducing pressure can start with trimming your spending. “Do you really need that new TV or pair of shoes?” Scott-Young says.

“Sometimes we trick ourselves in to thinking we need to reward ourselves for doing it a bit tough and this often translates in to buying unnecessary items.”

People’s Choice Credit Union spokesman Stuart Symons says people under pressure should set a strict household budget and stick to their spending limits.

“Delay purchases, shop around, and have a very clear idea of the difference between a need and a want,” he says.

“Be very careful about buy now, pay later schemes or payday loans that can be tempting with easy credit, but may add to your financial pressure in the long term.”

Symons says large sections of the economy are still struggling: “just think about hospitality, air travel, higher education”.

“As well, much of the financial support which was in place a year ago – government payments as well as repayment pauses on mortgages, insurances, rates and utility bills – has now either been withdrawn or is about to be,” he says.

“For many, the future is still unclear.”

REDUCE PRESSURE POINTS

• Buy local, which supports local jobs and keeps more Australians employed.

• Only buy what you need

• Rather than reward yourself with a shopping spree, spend time relaxing, reading a book or watching a movie.

• Return to some basic, family-focused things you did last year during lockdowns that were cheap but brought enjoyment.

• Think about a second job or career change as there are more job vacancies than a year ago.

Source: Beyond Bank

Originally published as Money tips to lower your household financial pressure