A decade from now, or once this pandemic is over, people will be posting throwback images of what it was like during this time. Even now, despite the absence of throwback pictures, we tend to look back over the past year and think about how it changed every aspect of our lives.

We've been lucky here in Australia. However, we cannot let our guard down and should continue with the good habits that we have built as we try to move towards normality. This includes the positive financial habits that we have developed in the past 12 months.

As we welcome the second quarter of 2021, some changes are becoming apparent in the financial world. The latest McKinsey Global Survey points to an overall sense of optimism among global investors but still continues to recognise the threat that COVID-19 poses.

One such threat still lies in unemployment and one of its staple consequences: poverty. In Australia, the end of the JobKeeper payment and the Coronavirus Supplement may leave at-risk households uncertain over their financial prospect. Coupled with this financial uncertainty is the role of mounting household debt.

The RBA lowered the interest rate to help stimulate the economy, rendering debt repayments more affordable allowing people to consume more goods to keep the economy afloat. With the stimulus ending, people will now face the prospect of repayment without support from the government.

On another note, trouble is brewing as the ASFA (Association of Super Funds of Australia) is now faced with a new reality: Aussie retirees are exhausting their super savings years before their passing. Can this be a result of a bigger problem?

What of property prices that continue to rise as a result of the Government's home buying grants and schemes? Is this surge also more of a cause than an effect on the average Aussie's ability to sustain themselves?

With all of these events occurring, some Australian’s are learning their lessons and are taking steps to help minimise, if not, curb their financial struggles. This is the case of the couple in one of our stories who used to be large spenders. Having been confronted with the harsh financial reality, they realised that something is amiss in their money habits. So they took practical steps to mitigate, if not eliminate, their financial woes.

It does excite us to see people manage their financial affairs and build healthy financial habits that will serve them well now and into the future.

The team at Your Wealth Hub Advice hopes you have a fantastic April!

Gavin Glozier, AdvFP
CEO & Principal Financial Adviser
P 1300 763 498 • M 0408 155 140
Level 33, 264 George St NSW, Australia
Life the life you want to live.