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Why is everything so expensive? New research shows rising cost of living has taken its toll on Australians

You don’t imagine anything. In this post-pandemic world, the list of non-Covid worries seems to grow every day

New research has expressed the main concerns of Australians ahead of the federal election. Unsurprisingly, financial and cost-of-living concerns top the list

The Real Concerns Index 2022 assessed Australians’ concerns about family, finances, work, education, health, technology, climate change and government. He rated these areas out of 100.

Australians worried about cost of living

Let’s quickly run through the main concerns:

  • 89% are concerned about the rising cost of living.
  • 88% are mostly concerned about the rising cost of energy, food and fuel.
  • 84% are worried about the effects of the pandemic on our economy
  • Finally, 81% of Australians are worried about how Australia will recover economically from the pandemic.

And because of Covid-19, many people’s priorities have changed.

Younger generations are financially strained because they want to buy a home, start a family or finally pay off their debts, according to Fox and Hare co-founder and financial adviser Glen Hare.

“As the cost of basic necessities continues to rise, people are increasingly seeing their wages disappear before they even have a chance to think about saving or investing. A situation that reinforces the feeling of despair then as property prices rise increasingly out of reach for many young Australians in particular.

How are Australians coping with these challenges?

Unsurprisingly, new research from independent market Fiverr shows Australians losing $2,664 on average over 2021.

A third of Australians aged 18 to 34 are considering a second job to make up the shortfall, with some just trying to get by, and others using the extra money to get ahead.

In this demographic, one in 12 already manages dual employment to help ease financial pressures.

Where are Aussies looking to save money?

Here are two priority areas for us looking to save:

  • 56% of Australians choose to eat less in restaurants
  • 54% use less electricity
  • The shortfall for everyday Australians is huge, says Fivver’s vice president of international expansion, Peggy de Lange.

    “With so many struggling with rising prices and rising costs of living, it’s no surprise that the public is considering new ways to earn a living,” she says.

    “The state of the economy is causing a surge in the number of people considering freelancing to combat the ever-increasing cost of living. The fact that people are thousands of dollars worse off than they weren’t in 2021 and that they are pulling back on discretionary spending clearly demonstrates the brutal economic challenges we currently face and the foresight of Australians to stay on top of their finances.

    So what are some other ways to save money?

    • Use a savings account: Your grandmother probably told you that saving money for a rainy day is the best way to save money. However, finding the best savings account to put your hard-earned money in can take a bit of time. This guide will answer all your questions about savings accounts, quickly.
    • Cut reduce your energy consumption! This means using sweaters and cuddling your cat.
    • Consider shop online, or small local shops. Many supermarkets offer free delivery and discounts if you buy a certain amount of food at once. Here are some of the best online grocery stores to compare
    • Rethink your journey! If you commute to work every day, you might want to consider doing some math on the actual cost of your daily commute. Especially if you use tolls, it may shock you how much that toll beep before the harbor bridge is costing you. This is a great time to think about carpooling, biking, or taking the train to work wherever you can.

    The report for this story was commissioned by Real Insurance and surveyed over 5,000 Australians.

    At Mozo, we’re always looking to help you save money. See our cost of living guide for more information on rising costs and how you can deal with them.

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