Australians want to be better with money in the New Year. Picture: NewsWire \/ Nicholas Eagar <\/p>\n
Younger Australians are set to face a \u201cperfect storm\u201d of financial pressure in the new year, as the majority of people aim to make themselves better with money.<\/p>\n
New survey data from MLC shows Australians are trying to get ahead financially in 2026, with more than one in two prioritising their finances in the new year.<\/p>\n
According to the survey data, 62 per cent of Australians aged 31 to 45 are concerned about their finances, with younger workers aged 18 to 30 close behind at 58 per cent.<\/p>\n
Older Australians are less focused on their finances, although 46 per cent are still worried about their financial position.<\/p>\n
Australians want to be better with money in the New Year. Picture: NewsWire \/ Nicholas Eagar <\/p>\n
This is overshadowing traditional goals, such as getting healthier or spending more time with friends and family.<\/p>\n
MLC finance expert Jenneke Mills told NewsWire young Australians were still feeling the pinch, and it was not surprising they were trying to prioritise their finances to get ahead in the new year.<\/p>\n
\u201cThere is a perfect storm of pressure that exists for young people at the moment,\u201d she told NewsWire.<\/p>\n
Ms Mills said younger people are facing psychological pressure \u201cto have it all today\u201d, which is having a broader impact on not only their spending habits but also their mental wellbeing.<\/p>\n
\u201cYoung people look around them and feel they should be able to simultaneously build a career, buy a property, invest early in their lives, travel and start a family,\u201d she said.<\/p>\n
\u201cThey do it in a very public forum given we are so connected through social media, so it becomes really easy to create unrealistic benchmarks and constantly compare yourself with other people around the world.\u201d<\/p>\n
Data shows 55 per cent of Australians have set a financial new year resolutions. Picture: NewsWire \/ Jason Edwards <\/p>\n
Ms Mills points to four quick tips Australians who want to get on top of their finances can try in the new year.<\/p>\n
\u201cProgress isn\u2019t perfection, it is actually just taking one step forward at a starting point and making intentional decisions \u2026. in practical terms, it is about focusing on what is controllable financially,\u201d she said.<\/p>\n
Set a budget<\/p>\n
According to MLC, Australians should start by budgeting, as it allowed people to know where their money was going and to make conscious decisions about spending.<\/p>\n
\u201cA budget is permission to spend, within boundaries you set and are comfortable with. You don\u2019t have to do it alone either,\u201d Ms Mills said.<\/p>\n
There are a range of free online tools, calculators and resources that enable you to get a clear picture of your current situation, and can help you set budgets and better manage your family\u2019s finances.<\/p>\n
Australians looking to save are being urged to break down their spending goals. Picture: NewsWire \/ John Appleyard <\/p>\n
Start making small savings<\/p>\n
One of the key barriers to financial wellbeing is not having enough money for unexpected expenses that life can throw your way.<\/p>\n
Whether it\u2019s a car repair, medical bill, or household emergency, these costs can derail even the most careful budget.<\/p>\n
\u201cEven small, regular contributions can boost confidence and give households more breathing room heading into the new year,\u201d Ms Mills said.<\/p>\n
\u201cIn tough times, building a buffer might feel impossible, but even starting small can make a huge difference over time.<\/p>\n
\u201cIf things do shift or change, you have some backing and a plan B.\u201d<\/p>\n
While the number changes depending on lifestyle factors and job security, financial experts usually suggest having an emergency fund that would cover somewhere between three to six months of essential expenses.<\/p>\n
Write down your goals<\/p>\n
Ms Mills also urges anyone looking to achieve their financial goals in the new year to write them down to make themselves more accountable.<\/p>\n
\u201cWrite them down, whether it\u2019s on a post-it note or even on your phone \u2014 just make a couple of notes about a few steps you can make toward each of your (financial) goals,\u201d she said.<\/p>\n
\u201cYou don\u2019t have to solve the world\u2019s problems in one day but if you can hold yourself to account and make a few small steps, you\u2019ve taken it off the shelf, it\u2019s here, it\u2019s now, it\u2019s live and active and it\u2019s easier to keep up momentum once you begin.\u201d<\/p>\n
Review debts<\/p>\n
Australians looking to get ahead in the new year could start by looking at their debt levels and coming up with a plan to repay any money they owe.<\/p>\n
\u201cIf you relied on credit cards or buy now pay later to get you through the Christmas period, don\u2019t panic but have a plan,\u201d Ms Mills said.<\/p>\n
\u201cIt\u2019s nothing to feel guilty about, more people than will be comfortable admitting it rely on credit at different times throughout their lives.\u201d<\/p>\n
Ms Mills says banks will negotiate, especially in a rising interest rate environment.<\/p>\n
\u201cIf you have multiple debts now is the time to get your ducks in a row,\u201d she said.<\/p>\n
Ahead of the Reserve Bank of Australia\u2019s first meeting of the year on February 2 and 3, economists have a grim prediction for homeowners.<\/p>\n
Australia\u2019s headline annual inflation rate dropped to 3.4 per cent from 3.8 per cent for the 12 months until November \u2013 better than experts\u2019 predictions of a fall to 3.7 per cent.<\/p>\n
Commonwealth Bank economist Harry Ottley said Wednesday\u2019s figures showed mixed signals with headline inflation moderating slightly, while services inflation remained higher than expected.<\/p>\n
\u201cThis is an uncomfortable number for the RBA,\u201d he said.<\/p>\n
\u201cWe maintain our expectation that they will increase the cash rate by 25 basis points to 3.85 per cent at the February meeting.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Australians want to be better with money in the New Year. Picture: NewsWire \/ Nicholas Eagar Younger Australians…\n","protected":false},"author":2,"featured_media":418022,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,9461,99,186,220406,46312,220405,46634,184,185],"class_list":{"0":"post-418021","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-australians","11":"tag-business","12":"tag-finance","13":"tag-jenneke-mills","14":"tag-mlc","15":"tag-ms-mills","16":"tag-newswire","17":"tag-personal-finance","18":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/418021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=418021"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/418021\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/418022"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=418021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=418021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=418021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}