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Discretionary Income Study
Money conducted a survey of 1,006 people to gauge how much discretionary income Aussies had each month
Discretionary Income Study
Money conducted a survey of 1,006 people to gauge how much discretionary income Aussies had each month
What is discretionary income?
Discretionary income refers to funds left over after paying for mortgage/rent, bills, groceries, kids’ expenses, household maintenance and supplies, and loan repayments.
Who is cash-strapped the most?
Our survey revealed that, even before global pandemic, 32% of employed Australians were either in credit or had under $100 left in their pocket after paying for their essentials each month. One in five (21%) were either still in credit or had less than $50 left each month.
Which age range is struggling the most?
Surprisingly, older Australians who work or receive an income were struggling the most with stretching their income. Forty-three (43%) of over-60s and 33% of those in their 40s and 50s were either in credit, or had under $100 left over after paying their monthly esentials, compared with just a quarter (26%) of those in their 30s.
Which state is struggling the most?
When Money compared responses between each state, it found that working Victorians were suffering the most. 25% of Victorians earning an income were either in credit or had less than $50 left over at the end of their pay each month, followed by 23% of working South Australians.
The findings also showed that 40% of working WA residents were either in credit or had under $100 left in their pocket after paying for essentials each month, followed by 35% of working Queenslanders.
Worse still, 70% of Australians believed their discretionary income would have been lower or the same this year, even before the pandemic. A third (33%) said they would have had less money left over each month after paying for all their essentials this year.
Older Australians had a much bleaker outlook towards their finances. The majority (92%) of over-60s and 81% of respondents in their 50s believed they would have less or the same discretionary income this year compared with last year. This contrasts with younger age groups who seem to be more hopeful: 50% of under-30s and 45% of 30-somethings thought that this year they would have had more spending money than they did last year.
Who has the healthiest finances?
Interestingly, working Aussies in their 30s seemed to be better at saving, with 26% citing healthy finances (more than $700 a month in discretionary income). NSW residents who earned an income also had the most money left over each month after paying all their essentials, at 25%.
Younger Aussies were also more positive about their financial outlook this year: 50% of under-30s and 45% of those in their 30s believed they will have more money this year, compared with last year.
Written by
Shaun McGowan
Shaun McGowan is the founder of Money.com.au. He's determined to help people and businesses pay as little as possible for financial products, through education and building world class technology. Previously Shaun co-founded CarLoans.com.au and Lend.
