47% of Aussies saving cash

The household savings ratio was 9.3 in the year to June 2012, representing about 9.3¢ saved for every dollar of disposable income according to the Australian Bureau of Statistics.

Households unable to save but able to make ends meet comprised 43 per cent of the 1,500 homes in an ME Bank survey conducted in June 2012.

Ten per cent of households were not saving and going backwards in their finances, drawing on savings, loans, credit or equity in their home. Forty-seven per cent were managing to save.

“There are a lot of people under financial stress who don't have a mortgage and don't own a home,” said Mr Oughton, who said home owners ahead in mortgage repayments, flagged by the Reserve Bank, should not be confused for the overall financial wellbeing of Australian households.

Source: The Age