5 signs your finances need an overhaul in 2020

Money problems can creep up us on gradually – industry super fund-owned bank ME shares five key indicators that you could be heading into financial stress in 2020 and tips on what you can do to avoid it.

1. Your bank account is frequently overdraw

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

ME research 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 survey by ME found 42% of credit cardholders 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 mebank.com.au. Members Equity Bank Limited ABN 56 070 887 679.

First Super does not recommend, endorse or accept responsibility for any products or services provided by any third party. Terms and conditions may apply, which should be obtained from ME Bank. First Super does not accept liability for any direct or indirect loss or damage caused by the products and services provided by ME Bank. First Super may invest in this third party but does not receive any commissions as a result of members using their products and services.