According to a recent study published at news.com.au,* the average Australian may be hard pressed to find extra income for superannuation contributions. The data would appear to say that Australians are spending most of their take home pay on necessities and don’t have a lot left over at the end of the month. But is that really the case?
Let’s take a look at what the study says first, then we’ll tell you what we see from a financial planner’s point of view.
By the Numbers
According to the study, 20.5% of the average Australian’s take home pay is spent on housing. This works out to $990 per month for every household in WA spending the most at $1249 per household and SA spending the least at $787. It must be remembered that these statistics include those living in regional areas.
Household bills are the next highest expense, weighing in at 15.5% or $633 per month. For the record, this number, which included power, telephone and Internet bills, surprised a lot of economists. Groceries averaged $531 or 12.1% of monthly income. Transport was $299, which worked out to 6.9%. Australians spent $174 or 4.2% on health expenses.