How much money it takes to not be stressed

With bills and mortgage repayments dominating households, more Australians are compromising their financial futures by not planning beyond their immediate concerns, according to new AMP research.

AMP's latest Financial Wellness report reveals that one in three Australians are either rarely or never planning for their financial futures.

This short-term thinking is stressing us out, with more than 2 million Australians feeling severely financially stressed. Just one in three workers now feel financially secure - down from one in two in 2020.

AMP Bank group executive Sean O'Malley says it's not surprising given the current cost of living pressures and housing unaffordability challenges.

"And while the research tells us that most are meeting their mortgage repayments, we know that savings rates are down and many are cutting back expenditure on household basics such as groceries, and other more discretionary items such as streaming services and holidays."

Aussies turn to friends and family, not advisers

What's more troubling is where Australians are turning for help.

Instead of seeking professional financial advice, nearly one in three Australians facing severe or moderate financial stress are relying on friends and family for guidance on crucial financial decisions.

Even more concerning, one in three aren't using any resources to inform their choices, despite the availability of online tools and expert insights.

Just one in 20 stressed-out Australians consult a financial adviser, amplifying the risk of ill-informed decisions.

How much money does it take to not be stressed?

Interestingly, financial stress is not confined to lower-income households.

While almost one-third (32%) of employed Australians in the $15,000 to $50,000 salary ranges are now moderately to severely financially stressed, the report shows a sharp rise in stress levels among those earning mid-to-high incomes.

Nearly one in four earning between $100,000 and $150,000 reported severe or moderate financial stress, a staggering 150% increase in just two years.

This raises the question: how much money is enough to feel financially secure in today's economy?

Well, among those earning over $150,000, financial stress has dropped from 11% to 6% over the same period.

The signs of financial stress

The report also highlights the wider implications of financial stress, particularly on mental wellbeing.

Many Australians are bottling up their concerns, reluctant to seek help, which can worsen their financial and mental health.

Financially stressed Australians are more likely to reduce both spending and socialising, and are less likely to seek professional financial advice.

Half of those that were severely or moderately financially stressed spent less time with friends, two in five were more likely to internalise their stress and spent more time in isolation, while over one in three spent less time with family.

Financial secrets and guilt

Another revelation from the report is the growing number of Australians hiding their financial struggles.

Close to one in three admit to having financial secrets that they haven't shared with anyone, often driven by feelings of embarrassment or guilt.

The hidden stress only adds to the mental burden many Australians are carrying.

Tips for financial wellbeing

In all of these circumstances, expert advice can often lead to better financial decisions and reduced stress - seeking it can pay off in the long run.

You can also utilise free budgeting apps and calculators to track spending and cut expenses.

Need to talk to someone?
Beyond Blue: 1300 22 4636
National Debt Helpline: 1800 007 007
Wesley Financial Counselling: 1300 827 638

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