The painful cost-of-living in 2022

Australians are saving half as much as they were this time last year as the rising cost of living eats into household budgets. New data from Finder shows Australians were saving an average of $461 per month in February, which was less than half of the $953 per month people were saving 12 months earlier.

The pandemic and restrictions on lifestyle most certainly would have an impact on this but the current economic turmoil from the Russian war is most likely the cause of higher costs of food, fuel and other household expenses. High costs of living were a major focus in the Federal Budget. Treasurer Josh Frydenberg had already announced several measures to ease the financial burden on households, including a one-off cash payment of $250 to pensioners and low-income earners.

Now more than ever you will need to be conscious of your household spending, as the cost of goods and services continually increases.

Housing stress is also on the rise

The Finder data also showed that 37 per cent of Australians admitted to struggling to afford their rent or home loan repayments in March. This is the highest this figure has been since Finder launched its Consumer Sentiment Tracker in May 2019.To help more people enter the housing market, the Federal Government has expanded the Home Guarantee Scheme, which allows first home buyers to put down a 5 per cent deposit without paying pricey lenders mortgage insurance.

Soaring petrol prices also hurting Aussies

Fuel prices have also spiked above $2 a litre, leaving many motorists “dreading” a trip to the petrol station. The Federal Government has confirmed a temporary cut to the fuel excise tax to alleviate rising petrol prices for motorists.