One-third of Australian households have no savings

Yippe-Ki-Ya said:
mmm....shiney! said:
On a side not, one of the best things I did was cash in my contributions toward my previous super fund when I went to a SMSF. I have these $$$ now readily available in an account if needed now or in the future and not locked away.
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What do you mean by this?

Sounds like you're saying that you could readily access funds from your SMSF should you need it??
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My post was as clear as mud, as usual :lol:

What I meant was that when I rolled over my retail superfund into our SMSF, I cashed out the non-restricted amount and shoved it in a bank account. Much more secure knowing I have $X on hand in case of an emergency, rather than having it stuck away helping some fund manager become a millionaire.
 
hussman said:
Scary, very Scary. Can anyone attest to the accuracy of the article?
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You might be onto something. The survey was apparently conducted by Ernst & Young on behalf of BT, but so far I can't find any direct sources (aka Googled) detailing the study's methodology, questions, etc. So all we've got so far is the news reports - which all so happen to come from News Corp sources like the Herald Sun and Daily Telegraph :/ .

ALMOST one in five would not be able to find between $500 and $1000 if they needed it in an emergency
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Seems like they are assuming that's $1,000 cash-on-hand. If you were desperate you could go to Cash Converters, or draw on some 'equity mate' if you have a redraw facility on your mortgage.

It's not that hard to save $3-5k, if you take out 10-25% of your after-tax pay and put it aside into a separate online high-interest bank account (make it a different bank from the one you use for everyday spending - helps keep them separate).

Where I work (70% female workforce, virtually all Gen Y, some Gen X's) I hear of ppl going on overseas holidays all the time, and see ppl lining up everyday for their morning coffee and lunch@our in-house cafe. It's quite mind-boggling how ill-informed ppl choose to be when it comes to money/financial matters - in this country with all the information and resources available, I don't think there's any good reasons why someone at 25yrs age couldn't be financially independent by the time they're 35-40yrs old (maybe not out of the workforce entirely, but definitely doing something they're passionate about 2-4days/week).
 
I understand the pain brother. :D

Still, even though fiat stinks, it's not dead in the water and at least 3 months of bills/living expenses in cash is advisable, as well as a couple of K at least under the bed.

Edit to add: And I can't spell :P
 
How common would mortgages on interest only repayments with offset accounts be compared with mortgages with principal and interest payments? It seems there is a bit of a false buffer for those with offset accounts should an emergency arise.
 
long88 said:
why hold fiat when you know that inflation is x% every year ?
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If was a multimillionaire I'd keep enough in a high interest account for me to live off the interest.

But seeing as I'm not rich I agree inflation is a very good reason not to be in cash
 
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