Australians are using a range of ways to bring in more money during the COVID-19 pandemic
Cash-strapped Australians expect their financial hit from the pandemic to last years but many have used these ways to bring in some quick money.
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The financial impacts of the coronavirus pandemic are expected to last several years as many Australians are forced to reassess their financial status.
St. George Bank’s new COVID-19 Financial Monitor report has examined the virus’s monetary toll on households and found more than two thirds of Australians – 68 per cent – had sought some sort of financial assistance during the pandemic.
Its survey of 1000 people also found:
• On average Australians felt the financial impacts of COVID-19 would affect them for nearly two years.
• 39 per cent have taken steps to try and generate extra income including selling second-hand items and getting an additional job.
• 35 per cent of families were motivated to tighten their household spending.
• 51 per cent felt they were financially prepared for an event like the pandemic.
St. George Bank general manager Ross Miller said the coronavirus forced many people to urgently reassess their financial situations and try and cope during unexpectedly tough times.
“We’ve seen people reconsider their savings plan and really scale back on spending,” he said.
“Australians have made drastic changes to the way they spend to actually create saving behaviours.”
Australian Taxation Office figures show during the pandemic more than 855,000 entities have been approved for JobKeeper payments covering around 3.3 million employees.
The $70 billion JobKeeper wage subsidy program is scheduled to officially end in September and has helped many businesses and employees survive financially.
Eligible employers, sole traders and other entities receive $1500 per eligible employee per fortnight.
Already 2.36 million Australians have accessed $19.4 billion in super early to help as a financial cushion and hundreds of thousands of borrowers have taken repayment holidays on their debts including mortgages, personal loans and credit cards.
Home loan interest rates remain at record lows – many are in the 2 per cent range – which should prompt borrowers to try and chase down cheap deals.
Mr Miller urged people to examine their spending on credit and debit cards and zoom in where potential savings could be made.
Financial adviser Scott Haywood said many people who were out of work or suffered job hits should look at ways to boost their employability.
“You need to upskill and do something to make you more employable,” he said.
“This will help you potentially keep your job or get your job back over the pack.”
And with the new financial year ticking over this week, Mr Haywood reminded Australians to re-evaluate their household bills to see if they could cut costs.
“You should try and do this annually, review electricity bills, car insurance and health insurance,” he said.
“With the new financial year arriving it’s a chance to have an early spring clean on your finances while many of us are at home.”
He said ideally Australians should tuck away three months’ worth of living expenses in reserve to be financially prepared for tough times.
Originally published as Australians are using a range of ways to bring in more money during the COVID-19 pandemic