How would your household cope with unexpected medical bills or loss of income? If you’re like many Australians, you could struggle with these emergencies, according to new research from Finder.com.au. The financial comparison website recently found roughly 10.5 million Australians don’t have enough savings to manage a financial emergency.
The study found 58 percent of people surveyed said they couldn’t cover the cost of an unexpected financial emergency, such as a medical problem. Many also worried about the financial impact of negative credit scores, job loss or uncertainty, meeting their debt repayments, passing debt on to their family members, and risky financial habits like gambling.
Bettie Hassan, a finder.com.au money expert, told Money Management magazine that her company’s research showed that many Australians lack sufficient savings.
“Many Australians are just one surprise situation away from financial stress,” she explained. “A short term personal trauma could very quickly become a financial emergency.”
“Being worried about an unexpected cost indicates Australians don’t have enough funds up their sleeve to manage a financial curveball,” she added.
The study showed baby boomers are the most fearful, with 70 percent of this generation worried they couldn’t cope with a financial emergency. Financial anxiety dropped among younger Australians, with 57 percent of Generation X noting they were worried they couldn’t afford a money emergency and 49 percent of Gen Y holding similar concerns.
Medical emergencies and other unexpected events can be incredibly stressful on any household. The last thing you need is further stress caused by financial hardship. Don’t wait until an emergency strikes to get your savings in order. Call Chase Edwards on 1300 854 833 to organise your free financial health check and learn whether you’re prepared for emergencies. If you’re not, our financial experts can help you build your savings so you’re ready to face any unexpected problems that come your way.