‘Severely yes': Nationwide feeling exposes cost of living crisis

News.com.au

a day ago

If you stopped and asked an Aussie how they're feeling right now there's a good chance they'll tell you that, besides being cold, they are also feeling broke.
Feeling broke - which used to be reserved for people struggling on government benefits, working minimum wage jobs, or studying at university – is now a nationwide feeling.
Not only are Australians not feeling rich right now, but the general consensus is that many are struggling.
There's no question that feeling broke or poor is relative. Not having enough money to buy a $200 jacket at the end of the pay cycle might make one person feel broke but, for another, it might mean not having enough to cover groceries.
There's a big sliding scale but, no matter where Aussies seem to sit on it, they're feeling the same way.
When news.com.au hit the streets of Sydney and asked Aussies if they were feeling broke, the answer was unflinchingly yes.
Even people that didn't want to be filmed confirmed they weren't feeling very rich right now before actively fleeing to go live their inflated lives.
There was one exception: a young guy that said he didn't want to answer because his parents were wealthy and he was living at home. But, apart from the one roaming nepotism baby, everyone else felt skint and weren't bothering with bravado.
When asked, 'Do you feel broke right now?', most Aussies just straight out said 'yes' without attaching any caveats or feeling the need to justify it.
Anyone who did choose to elaborate merely just doubled down on the feeling.
'Severely yes,' one said.
'Eternally,' another said before revealing that she worked in the arts, which made it even harder.
'If you were to consult our bank balances, yes,' one man said.
A young woman said she was picking up more shifts to feel less broke, but even working more doesn't seem to change how people are feeling.
A man in a trendy all-black outfit and admitted he was actually earning more this year than the last, but that was being offset by rising costs.
'My income has gone up (but) everything like groceries has gone up as well. I don't feel like I'm making much more money,' he said.
Similarly, another person explained that he is actually doing more work this year and is feeling just as poor.
'I feel pretty broke this year. I'm working more and I somehow have less money,' he said.
Australia has been battling a severe cost-of-living crisis since the end of 2021. It has become expensive just to exist.
Mortgage holders and renters are feeling the pinch – the median rent is now over $600 weekly and house prices continue to boom.
The Australian Bureau of Statistics reported this month that the national average dwelling price has hit $1 million for the first time.
If that isn't enough to make you feel financially anxious, wage growth has only risen by 3.4 per cent over the last 12 months.
Financial comparison website Finder has also found that 37 per cent of Australians have less than $1000 in their savings accounts, and 59 per cent are experiencing financial stress.
Financial expert Julian Finch said that he has noticed a trend of Aussies feeling financially strapped.
'I feel poor myself,' he said.
'The cost of everything has gone up and our wages don't keep up.'
Mr Finch has clients that ring him and claim they feel like they're going 'backwards' and are worrying they're falling behind.
The financial expert said that there's now a common theme of people really grappling with feeling increased financial pressure and Mr Finch argued that, when you consider inflation, that isn't surprising.
'While the government will tell us that inflation is on its way down – this is a myth of mega proportions as costs (have) gone up between 10 and 40 per cent over the past three years,' he said.
Mr Finch said that, even if inflation slows, prices are never going to go back to what they were before.
'The rate of price increases might be coming down to a more manageable level but the cost will never be as low as it was ever again,' he said.
On the other hand, Mr Finch stressed that he has also noticed a big divide, with the rich getting richer and the poor getting poorer.
'For everyone who is doing it tough, there are people out there doing it easily,' he said.
'For every person going bad, someone is going good. It is one of those situations where there is a class divide where the rich are getting rich, and the poor are poorer.'