More than 9 million Aussies have less than $1000 in the bank: ‘A flat tyre would be too much’

New research reveals an alarming number of Aussies are absolutely skint, with even the most basic expenses now “too much” for millions.

Almost half of Australia can’t change a tyre, but it’s not due to a lack of mechanical know-how.

New market research has revealed that an alarming number of Aussies are skint, with even the most basic expenses now “too much” for millions.

A recent study conducted by Finder’s Consumer Sentiment Tracker has revealed concerning insights into Australians’ financial situations.

The survey, which canvassed 3214 respondents’ personal finances, has prompted calls for increased financial literacy and preparedness.

The findings indicate that a significant 45 per cent of Australians have less than $1000 in their bank accounts, translating to approximately 9.4 million individuals.

Additionally, a staggering 20 per cent of Aussies admit to having no savings whatsoever.

According to the study, the average bank balance for the 9.4 million with meagre savings is $210.

Graham Cooke, head of consumer research at Finder, expressed grave concern over the precarious financial situation faced by many households.

“Cost of living pressure in Australia is at a record high, which is why so many Aussies having no savings buffer is a huge concern,” he said.

He emphasised the potential repercussions of even minor financial setbacks for individuals living paycheck to paycheck, stating: “Even something as trivial as a flat tyre would be too much for many households right now.”

45 per cent of Australians have less than $1,000 in their bank accounts, and 20 per cent have no savings at all, according to a recent study by Finder. Picture by Damian Shaw

Conversely, the average Australian boasts a substantially healthier bank balance, averaging $36,095 due to “the nation’s super savers pulling up the national average”.

However, Mr Cooke reiterated there were still millions of Aussies who are “living pay to pay, with many running out of money long before they run out of month.”

Mr Cooke said credit cards and loans are useful but can lead to debt if relied on too much.

“Those lower levels of savings means people are much more likely to have to turn to credit cards, loans, and buy-now-pay-later products to get by,” he said.

“While these products can be great if used properly, they can quickly get out of hand if relied on for everyday expenses.”

To mitigate the risk of financial instability, Mr Cooke suggested aiming to have three months of income squirrelled away as a precaution.

He also encouraged individuals to scrutinise their expenses and seek opportunities to trim costs, noting that even modest savings could accumulate significantly over time.

Mr Cooke urged Australians to explore avenues for augmenting their income streams, such as high-interest savings accounts and recurring investments.

It is aiming to have three months of income saved as a precaution, scrutinising expenses, and exploring avenues for augmenting income streams.

“A high-interest savings account is designed for people who want to build up their savings while earning more interest than a standard bank account,” Cooke explained.

He emphasised the potential benefits of recurring investments, stating: “A recurring investment of $100 a week into a high-interest savings account paying 5.50 per cent interest would amount to $2,642 in two years.”

And Finder’s research isn’t the only evidence of financial strain among Aussies at scale.

One in six Australians have resorted to using credit cards to cover the cost of everyday expenses, it was revealed this week.

New research by Good360 – an organisation which redirects unsold essential products such as clothing and furniture to charities – found 27 per cent of Australians were doing it tougher than ever before, with the brunt of financial pressure more concentrated in South Australia (34 per cent) and Queensland (30 per cent).

It also found nearly one in 10 people surveyed (8.5 per cent) have also sought help from a charity, or are considering support due to financial pressures.

Good360 Australia managing director Alison Covington said the “quite frightening” increased use of credit cards on basic amenities was proof of pressure on households.

“What we’re seeing is that everyday Australians are needing more help than ever. Previously it was when we were having crises and disaster, like fire, flood and Covid, now the cost-of-living crisis is hitting all over Australia,” she told NCA NewsWire.

“We’ve had interest rate hikes, people struggling with fuel costs and electricity.

“It’s a really telling sign in the economy that people have resorted to credit cards and pay later schemes – it’s quite frightening in a country like ours, that people are really struggling.”

– With NCA NewsWire