5 signs your finances need an overhaul in 2020

12 February 2020

Know the five key indicators that you may be heading into financial stress in 2020 and tips on what you can do to avoid it, brought to you by industry super fund-owned bank ME.

1. Your bank account is frequently overdrawn

If your account regularly dips into a negative balance, review your budget to see if you’re overspending. Check if you’re being overly ambitious with savings – trying to save too much, too fast could leave you overdrawn.

2. Your emergency savings are worth less than three months’ pay

money goals in article savingsThe latest Household Financial Comfort Report by ME has found one in five households didn’t think they could raise $3,000 in an emergency.

Growing rainy day money doesn’t have to be hard. Work out what you can comfortably tuck away each month and then set up a regular transfer of funds into a separate savings account.

3. You have a credit card debt AND savings

A ME survey found 42% of credit card holders with outstanding card debt also have personal savings. Yet chances are you’ll pay a much higher interest rate on the card balance than you’ll earn on savings. It can make more financial sense to use savings to pay off high interest debt first, then concentrate on growing spare cash.

4. You’re paying high fees

Review your bank statements to see what you’re really paying in account fees. Plenty of banks don’t charge regular account-keeping fees. Some also offer refunds for ATM fees. Use 2020 to get a better deal on everyday banking.

5. Money matters are a source of stress

If money matters are robbing you of sleep, it’s time to take action.

A valuable first step can be expanding your financial know-how. Head to ME’s free online school of money, Ed, to boost your financial IQ and discover simple strategies to get your finances in great shape.

This article is brought to you by ME. For more information, please visit www.mebank.com.au. Members Equity Bank Limited ABN 56 070 887 679 and Australian Credit Licence 229500.

The Trustee and ME are not agents or representatives of one another. The Trustee is not responsible for and does not accept liability for the products or services of ME. ME is an Australian credit licensee (Australian credit licence no. 229500). You should use your own judgement before taking up any product or service offered by ME. TWUSUPER invests in ME but does not receive any commissions as a result of members using ME products and services.

General advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, consider its appropriateness. Refer to our Product Disclosure Statements (PDS). The PDS is relevant when deciding whether to acquire or hold a product.

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