dsl-logo

Home Loans

Personal Loans

Car Loans

Business Loans

Credit Cards

Banking

dsl-logo
dsl-logo

Home Loans

Personal Loans

Car Loans

Business Loans

Credit Cards

Banking

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.

Shaun McGowan Money.com.au founder

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.

logo

Our Money Promise

Money Pty Ltd (trading as Money) Australian Credit Licence 528698 provides information about credit products and is authorised to do so as the holder of Australian Credit Licence 528698. Money does not compare every Lender all products or issuers available in Australia. We are not a broker or credit provider and when we provide information via this website, we are not providing you with a recommendation or suggestion about a particular credit product.

This material has been prepared by Money Pty Limited (ABN 40 664 954 536) (Money, ‘us’ or ‘we’). Money is a corporate authorised representative (CAR 001307399) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C). The material is for general information only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with financial or tax advice and does not take into account your objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, Money, any of their related body corporates or any other person. To the maximum extent possible, 62C, Money, their related body corporates or any other person do not accept any liability for any statement in this material.

Money Pty Ltd trading as Money

ABN: 42 626 094 773 / ACL: 528698 / AFCA: 83955
Money is a corporate authorised representative (CAR 001307399) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C)
aboriginal-and-torres-strait

Money acknowledges Aboriginal and Torres Strait Islanders as the traditional custodians of country throughout Australia and their continuing connection to land, waters and community.

© Copyright 2024 Money Pty Ltd.