Are you the 1 in 3 Aussies in danger?

Author: Vanessa Stoykov
Category: Manage Finances

Here is a statistic that really troubles me. 1 in 3 Aussies don’t have more than 1 month’s salary saved for emergencies. That means that a third of the population is at risk of something bad happening, and then being in major financial hardship.

Are you one of these 1 in 3? Do you worry how you will survive if you got hit with multiple and unexpected bills? The car breaking down? The washing machine blowing up? A medical emergency? If you answered YES, you are far from alone. And mentally, that reality can be extremely tough to cope with.

In fact, people in a recent research report from University of Melbourne said that outside of the struggle to buy food, coping with the mental health issues stemming from a lack of money was one of the hardest things to deal with.

It’s not a big leap to see how financial pressure can lead to anxiety and mental stress. I’ve been there myself and can still remember how debilitating it felt – and how getting to sleep at night became harder and harder.

With this in mind, I urge you to do these three things to change your situation. Warning – it won’t work overnight. I like to think it’s a five-year process to build your financial fitness on the road to financial freedom. Being financially fit means having a safety net, and avoiding multiple debts to live a less stressful life – and that has a huge impact and improvement on mental health.

1. Think long and hard about levers you have to pull to raise enough savings to give you a cushion. A soft place to land.

What would it take to save three months’ of your absolutely minimum living expenses? How can you go about raising this money to give you peace of mind? Can you sell something you no longer need? Can something of sentimental value be better put to giving you peace of mind? Think long and hard about levers you have to pull to raise enough savings to give you a cushion. A soft place to land. This is going to change your mindset and worry levels considerably, so it’s worth going the whole nine yards and exploring every option.

2. Consider a side-hustle for additional cash until you get 3 months of savings in the bag.

If you can save more from your existing salary, can you also side hustle? Babysit? Mow lawns? Work in a call centre after hours? While a second job might be a challenge to your already busy schedule, it only needs to be a short-term gig until you get 3 months of savings in the bag. If you can do longer, GREAT. The more you save, the better off you are. Three months is a fantastic start and should be your first focus.

3. Set yourself a date you want to achieve this goal by. Don’t let it drag on.

Give yourself a deadline and hold yourself accountable to it. You would be surprised how much more efficient you will be with your thinking and your time if you are working to a live deadline.

There’s an old saying in the sales world: Activity = Action = Results. You need to put in a concerted effort to solve this one for yourself. It is one of the most important steps to go through on your road to financial freedom. So go on, invest in yourself.

Until next time,

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Each day I wake up excited to inspire everyday people to open up and take control of their money, regardless of their history, goals, or savings amount. About Vanessa >>

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Authors

Vanessa Stoykov

Vanessa has been passionate about writing and storytelling since her days of hiding under the doona with her torch to read after bedtime.
Kathy Skantzos

Kathy is a yoga-loving world traveller who also happens to moonlight as a business journalist and writer. She was the finance editor of news.com.au and the Managing Editor of CEO Magazine (Asia) before joining Vanessa and the evo squad.
Shayne Sommer

Shayne is second dan black belt in karate, and a budding romance writer with a difference. Why? Because she writes romance stories that always have a money lesson.
Antoinette Colbran

Specialising in stories for 50+ women, Antoinette draws from her own experiences to help other women avoid the pitfalls and see the benefits of understanding their money situation.
Michael Crooks

Michael Crooks is a more than 20 year writer and documentary maker who has worked with Time Inc and the BBC, who wants to expose the truth from real victims of financial crime to help others avoid their mistakes.
Kim Payne

Kim Payne has spent the past three decades as a speaker, trainer, business coach, and consultant in financial services. She has worked with and transformed hundreds of brilliant, educated, high achievers who are chronically under-living.
Rebecca Pritchard

Rebecca Pritchard is on a mission to help men and women achieve equality when growing a family.
Antony Perring

Ant is a writer, designer and business builder with a love of food, design and good living. He writes on food and money in an easy to do way.
Julie Hyde

Julie Hyde is a leader of leaders. A disruptor and a powerful people enabler who empowers leaders to make big things happen.
Joshua Pennell

As a Dad to four kids and a business owner, Josh is passionate about family and finances and is known as The Family Finance Guy.
Sid Lal

Sid is a serial entrepreneur who set up his first business when he was still in University. Since 2009 he has been heading Bruce Clay, first in India & more recently in Australia.
Lou Johnson

Lou Johnson believes in the power of sharing stories to build empathy, understanding and connection. Growing up surrounded by books and storytelling, alongside her drive to make a difference led her to a highly successful career in book publishing.
David Rae

Dave is a CERTIFIED FINANCIAL PLANNER® professional and has been a financial adviser since 2003. He works with a range of clients and has a strong focus on ethical and sustainable investing.
Natallia Smith

Natallia specializes in assisting pre-retiree single women—whether they are never married, widowed, separated, or divorced—understanding deeply the importance of financial stability during life's pivotal moments such as separation, divorce, retirement, and the loss of a loved one.
Mark Hoy

With over 15 years of experience in financial services, Mark established Wollemi Wealth Management in 2013. His business is built almost entirely on referrals and word of mouth — a testament to the trust, integrity, and long-term relationships he forms with his clients.
Derek Gascoigne

Derek Gascoigne is the State Manager for UniSuper Advice in Victoria and Tasmania. Derek has been with UniSuper for over 15 years, and his career in superannuation and financial services spans 27 years and counting.
Annika Bradley

Annika Bradley is Head of Advice Strategy, Research & Technical at UniSuper. She brings over 20 years of experience across investments and wealth management in both the public and private sectors.
Wayne Leggett

Wayne has been a recipient of numerous industry awards and was one of the first to qualify as a Certified Financial Planner (CFP). He has been heavily involved in industry affairs at the highest level, including serving as national president of the Association of Financial Advisers (now FAAA).
Conrad Francis

Conrad Francis is the Founding Director of Inspired Money, a Perth-based financial coaching and financial planning, mortgage broking and money coaching firm he established in 2011.
Andrew Beks

Andrew Beks is a Chartered Accountant and the founder of Simplified Business and Accounting.