Recent Study Indicates Australians have 30.9% Disposable Income*
Announcement posted by Approved Financial Planners 15 Aug 2014
Australian financial planners reveal how budgeting can help more Australians make superannuation contributions.
Perth, WA, 15 August 2014 - Recently, news.com.au published a study* about Australian spending habits. A firm that offers financial services in Perth offered a viewpoint that interprets the report as proof that Australians have plenty of leftover money to make contributions to their superannuation funds.
According to the study, Australians spend an average of 20.5% of their take home pay for housing. Another 15.5% is spent for household bills such as electricity, water, Internet and telephone. 12.1% goes to groceries, while 6.9% is spent on transport. 4.2% goes toward health expenses while 9.9% is spent paying off credit card debt.
When added together, this means that 69.1% of the typical Australian’s paycheck is spent before they cash it. However, Daniel Stevens, an Authorised Representative of AMP Financial Planning Pty Limited who works at the Perth firm Approved Financial Planners, prefers to look at the bright side of the equation. According to Mr Stevens:
“If 69.1% goes to necessities, the good news is that 30.9% is discretionary income. It might not seem like a lot when a person looks at what they have left after paying their bills, but there is plenty of money in there for the average person or household that formulates a budget and decides to spend a certain amount every month to help secure their future.”
Mr Stevens recommends that any household create a budget and stick to it. The mechanics of creating a budget are simple. First, income is taken into consideration. Then, mandatory expenses, including food, are tabulated and subtracted from the income. The remainder is discretionary income.
The simple act of tracking one’s income and expenses can be an eye-opener for those who have never done it before. It allows one to see exactly where their money is going, especially discretionary purchases. Mr Stevens advocates striking a balance between current and future lifestyle:
“It can be tough to strike a balance between enjoying life now and securing your future. We know that people want to buy the new, expensive car, a large, flat-screen TV or something like a motorbike or motorboat. We also know that it is a lot of fun to take expensive vacations and eat at expensive restaurants. But how much is too much? When does the money you spend today take money out of your pocket when you may need it the most?”
Mr Stevens recommends talking to a financial planner to help solidify future financial goals while still allowing for a comfortable lifestyle today. According to Mr Stevens,
“I always recommend sitting down with a financial planner. When I start working with a client, we figure out when they want to retire and how much money they want to retire on. Then we come up with a plan together to help them get there.”
Approved Financial Planners is an Australian financial planning firm offering superannuation and other financial services in Perth. They offer a full range of financial planning and wealth protection products. To learn more, call 1300 787 274 or visit their website: http://www.approvedfp.com.au/.
*Study published 23 June 2014:
http://www.news.com.au/finance/money/ing-direct-research-reveals-how-australians-spend-their-monthly-salaries/story-e6frfmcr-1226963930282
General Advice Warning
What you need to know
Any advice contained in this Page is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters
According to the study, Australians spend an average of 20.5% of their take home pay for housing. Another 15.5% is spent for household bills such as electricity, water, Internet and telephone. 12.1% goes to groceries, while 6.9% is spent on transport. 4.2% goes toward health expenses while 9.9% is spent paying off credit card debt.
When added together, this means that 69.1% of the typical Australian’s paycheck is spent before they cash it. However, Daniel Stevens, an Authorised Representative of AMP Financial Planning Pty Limited who works at the Perth firm Approved Financial Planners, prefers to look at the bright side of the equation. According to Mr Stevens:
“If 69.1% goes to necessities, the good news is that 30.9% is discretionary income. It might not seem like a lot when a person looks at what they have left after paying their bills, but there is plenty of money in there for the average person or household that formulates a budget and decides to spend a certain amount every month to help secure their future.”
Mr Stevens recommends that any household create a budget and stick to it. The mechanics of creating a budget are simple. First, income is taken into consideration. Then, mandatory expenses, including food, are tabulated and subtracted from the income. The remainder is discretionary income.
The simple act of tracking one’s income and expenses can be an eye-opener for those who have never done it before. It allows one to see exactly where their money is going, especially discretionary purchases. Mr Stevens advocates striking a balance between current and future lifestyle:
“It can be tough to strike a balance between enjoying life now and securing your future. We know that people want to buy the new, expensive car, a large, flat-screen TV or something like a motorbike or motorboat. We also know that it is a lot of fun to take expensive vacations and eat at expensive restaurants. But how much is too much? When does the money you spend today take money out of your pocket when you may need it the most?”
Mr Stevens recommends talking to a financial planner to help solidify future financial goals while still allowing for a comfortable lifestyle today. According to Mr Stevens,
“I always recommend sitting down with a financial planner. When I start working with a client, we figure out when they want to retire and how much money they want to retire on. Then we come up with a plan together to help them get there.”
Approved Financial Planners is an Australian financial planning firm offering superannuation and other financial services in Perth. They offer a full range of financial planning and wealth protection products. To learn more, call 1300 787 274 or visit their website: http://www.approvedfp.com.au/.
*Study published 23 June 2014:
http://www.news.com.au/finance/money/ing-direct-research-reveals-how-australians-spend-their-monthly-salaries/story-e6frfmcr-1226963930282
General Advice Warning
What you need to know
Any advice contained in this Page is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters