We’re all about that short-term pain for long-term gain, Flux fam.
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Let’s be honest - spending money is a LOT more fun than saving money.
But, here’s the thing: unfortunately, spending cash on clothes is unlikely to help your financial goals in the long term (unless you bought a vintage Chanel coat that’s gone up in price...unlikely).
We’re all about that short-term pain for long-term gain, Flux fam.
We don’t need to tell you that life can throw some pretty crazy things at you (helloooo global pandemic) - so having a financial safety net can help you prepare for whatever comes your way.
But the thing is, around 46% of Aussies live paycheque to paycheque, which means nearly half of us aren’t equipped to deal with a financial emergency.
In a way, you can think of your savings account like your own insurance policy.
Car gets dinged? Don’t worry, you can pay the excess. A big energy bill after a cold winter? Prepped for that. Get asked to be in the bridal party of your mate’s wedding? Yep, financially ready (even if ya not mentally ready).
The average Aussie has $29,091 in savings, according to data from Finder.com.au. But depending on what age and gender you are, that can change.
Now, everyone’s sitch is a lil different - but sometimes, it’s good to get a little sense of how others are tracking.
Men on average have around $37,380 in their savings, while women have $27,061.
The average savings account is serving interest rates of around 0.1%, which is the same as the official cash rate set by the Reserve Bank of Australia.
What does that mean though? That means on a balance of $10,000, you’ll earn a measly 10 bucks each year.
Having savings means you can tick off more things from your financial to-do list without borrowing money from the bank (or the bank of mum and dad!).
It could be smaller goals, like a new laptop to help you with your side hustle...saving for a vacay...or just feeling financially secure.
Alternatively, your savings could help you achieve larger goals.
For example, a bank or lender will generally require around 20% of the purchase price of a home as a deposit. This is likely where a big chunk of your savings will go if buying a home is your financial goal.
If your financial goal is to pay off a big portion of debt, then you could use your savings to pay it off... Alternatively, you could use your savings to make more money via investing.
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