Aussie Households Still Struggle

The ME Bank Household Financial Comfort report showed that many Australian households remain cash-strapped.

Although it appears that more Aussies are saving more money in the last few years, the bad news is that those who are not able to make ends meet are the ones who are spending more than they earn.

According to Jeff Oughton, majority of Australians are saving more money despite struggling. Proof of this is the higher savings rate of the country in the last few years.

Oughton is Economics and Beyond chief economist. The consultancy firm helped in preparing the report.

Data showed that the latest household savings ratio is now at 9.3. This equates to an Australian saving 9.3 cents for every dollar that is categorized as disposable income. In June 2008, the household savings ratio was just 3.7.

According to the Australian Bureau of Statistics, the savings rate of the country in 2008 and 2009 was at 9.5.

The report also showed than 47 percent of the1,500 homes surveyed are able to save money. The bad news is that more than 40 percent could not make ends meet. About 10 percent were also becoming more financially irresponsible. Instead of saving money, they are withdrawing from their accounts, and carrying more loans.

Oughton added that there are still many Aussies who don’t own a home. He, however, said this is not indicative of the financial well-being of Aussie households.