It's time to save yourself

SAVERS are becoming an endangered species in Australia, as a "buy now and worry later'' mentality takes hold.

Cash lock /File

It's time to save yourself

SAVERS are becoming an endangered species in Australia, according to Adelaide-based financial services group KeyInvest.

Managing director Ian Campbell said a  "buy now and worry later'' mentality was putting many people's financial future at risk.

"Gone are the days when a savings account was obligatory for everyone. This is a trend that has very scary implications for all Australians,'' he said.

"The prudent savings strategies of past generations, particularly those who grew up in tougher economic times, can prove to be valuable lessons for today's more impatient spenders.

"Unfortunately for many Australians, the art of saving has effectively been put on the scrapheap.''

Mr Campbell said the US sub-prime mortgage crisis - which is resulting in tens of thousands of Americans losing their homes - was the "ultimate wake-up call for non-savers''.

"When people commit to the payment of something that they are unable to pay back, the consequences are dire. By adopting a strong savings mentality, people can avoid slipping too far into debt,'' he said.

Mr Campbell said while superannuation was correctly promoted as a forced savings tool, there was still a need to save money outside super to pay for life's major purchases.

"There is no real flexibility in super. It is a long term savings arrangement that most people can't access for a long period of time,'' he said.