Budget busters: 3.8 million Australians faced a financial emergency over the past year
Millions of Aussies have been derailed by an unexpected financial emergency over the past 12 months, according to new research by Finder.
A Finder survey of 1,041 respondents revealed nearly 1 in 5 Aussies (18%) – equivalent to 3.8 million people – have suffered a financial emergency over the past year.
The average money emergency cost a whopping $5,130 – that's $19 billion nationwide.
Finder's data shows most people would be derailed by such an emergency expense, with 40% of Aussies having less than $1,000 in savings.
Sarah Megginson, personal finance expert at Finder, said emergency funds are in bad shape.
"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.
"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 (21%) are more likely than men (15%) to have endured an unexpected expense.
Scarily, that unplanned expense totalled $6,428 on average for women – almost double the $3,387 for men.
Megginson said planning for the unexpected, where possible, is crucial.
"Life doesn't always go as planned.
"An emergency fund can be a crucial financial safety net to help you navigate life's unexpected turns."
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."
Megginson recommended saving at least 3 months' worth of expenses in case of emergencies.
"Finding a side hustle can help supplement your emergency savings, but it's also really effective to review your current spending habits and household bills to look for opportunities to pay less or spend less.
"Park any spare cash in a high interest savings account to help build your buffer faster."
| Have you had an unexpected/emergency expense in the last 12 months (e.g. care, house, medical, family expense etc)? | |
|---|---|
| Yes | 18% |
| No | 82% |
| Source: Finder survey of 1,041 Australians August 2024 |
Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 1,041 respondents from August 2024.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics, an SAP company.
- The survey has been running monthly since May 2019.
Check out the winners of Finder's Bank Account Satisfaction Awards 2024.