Aussie women’s dramatic savings move

The data, from a survey by comparison site Finder, found 47 per cent of Australians have taken money out of their savings account in the past 12 months.

An average of $2,365 was withdrawn for each respondent which would equate to a staggering $47 billion nationwide.

Mortgage and rental payments ($367), everyday essentials ($327) and unforeseen emergencies such as medical costs ($185) are burning the biggest hole in savings accounts, according to the survey.

Debt repayments ($149) and school fees/expenses ($29) are also draining funds.

Alison Banney, money expert at Finder, said a growing number of families are living paycheck to paycheck.

“Aussies are doing it tough with many unable to cover rising costs from their income alone,” she said.

“Millions of people are in pretty bad financial shape at the moment and pressure continues to build.”

The data revealed women spent more of their savings over the past year than men – withdrawing $2,524 on average, compared to $2,199 for men.

Ms Banney said Australians struggling should do a thorough audit of their lifestyle to cut costs.

“From refinancing a loan for a lower interest rate to getting a better deal on your mobile phone plan there are a lot of quick wins hiding in plain sight.

“Budgeting is also important to see where your money is going to make sure there isn’t any wastage.

“There’s a ceiling for how much you can cut from your life – but the sky’s the limit when it comes to how much we can earn.”

Ms Banney said households should prioritise boosting their income to replenish savings.

“Take on extra responsibility at work to secure a pay rise if you’re able to, or use your skills to earn some extra cash in the gig economy to increase revenue streams.

“Then invest this extra money to build wealth.”

Inflation in Australia rose 6.8 per cent in the 12 months to February, marking the second consecutive month of lower annual inflation.

This came after the 8.4 per cent peak in December and the 7.4 per cent rise in the 12 months to January – but the figure is still well above the Reserve Bank’s aim of 2 to 3 per cent.

The most significant contributors to the annual inflation increase to February were housing (up 9.9 per cent), food (8 per cent), transport (5.6 per cent) and recreation and culture (6.4 per cent), according to the ABS.

Grocery prices have also surged over the last year, with an annual rise of 12.5 per cent for bread and cereal products and a 14.3 per cent rise for dairy and related products.

However, the central bank left the cash rate on hold, for the first time in a year after 10 consecutive rises, at 3.6 per cent when it met last week.

But homeowners hoping it could spell the end of the RBA’s tightening cycle could be in further pain later in the year.

Governor Philip Lowe said last week the bank would be paying close attention to trends in household spending, inflation and labour market data ahead of its next meeting just before the May budget.

Over the past ten months, the RBA has aggressively lifted rates from a record low 0.1 per cent last May in a bid to curb the skyrocketing inflation.