Growing up we are told not to compare ourselves to others and focus only on our own progress, success, and happiness. Nonetheless, everyone has the tendency to check in and see how they are doing in comparison with others.
In this article, you will discover how you compare to other savers in Australia.
Compare yourself to other savers in Australia.
How do you compare to others?
According to Money Smart, the personal finance advice arm of the Australian Securities and Investment Commission, 16% of Australians save easily while 41% save a little. 43% of Australians, however, do not put any money aside at all.
Out of the 57% of surveyed individuals who save money, 48% are saving for a home while 47% are saving for the future. Other common savings goals include a holiday (47%), an emergency fund (33%), a car (13%), and education (10%).
Out of those saving money with particular goals in mind, 65% are confident that they will achieve their savings goal while 43% do not have a clear plan on how to get there.
The confident savers use particular techniques that ensure them that they will reach their savings goal.
- They know exactly how much money is needed.
- They have a clear savings plan.
- They regularly review their progress.
- They have a specific time frame in mind.
- They tell their friends and families about it for accountability.
In other words, savers who regularly review their progress and have clear saving goal in mind, are more likely to reach their goals.
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The different types of savers
The Money Smart survey also identified four different types of savers The ‘Dreamer’, the ‘Hit & Miss’, ‘Slow & Steady’, and ‘Fast & Determined’.
The Dreamer has savings goals but no plan on how to achieve them. ‘Hit & Miss’ has a plan but does not always manage to stick to it. ‘Slow & Steady’ saves small amounts regularly and eventually achieves the savings goal while ‘Fast & Determined’ is focused on saving as much as quickly as possible to reach the savings target.
Out of the surveyed individuals, 11% are ‘Dreamers’, 24% are ‘Hit & Miss’, 37% are ‘Slow & Steady’ while 28% are ‘Fast & Determined’. So, how do you compare to other savers? And, most importantly, are you using the techniques of confident savers that help you to reach your savings goals?