Millions of Aussies derailed by finance crises as savings shrink

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Many Australians have less than $1000 in their savings - enough for even a moderate emergency to wipe them out.

Millions of Australians have seen their savings derailed by unexpected financial emergencies in the past 12 months, new research suggests.

A Finder survey found 18 per cent of respondents said they'd taken an emergency financial hit in the past year - equivalent to 3.8 million people.And with Finder's data showing 40 per cent of Australians have less than $1000 in savings, a sudden $5000 bill can cause financial carnage."It's been a very tough year for Australians, with many households exhausting their funds as they struggle to deal with the higher cost of living," she said.

"Financial emergencies are more common than people realise, and often require households to resort to extreme levels of sacrifice or going into debt to manage." Finder's research found women are more likely than men to have endured an unexpected expense.Megginson said in the context of the cost of living crisis, it was more important than ever to have a budget."If you are worried about your upcoming payments, reach out to your lender or provider to find out about their support and resources," she said.

 

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