The finance strategy saving families, but it’s not ideal
SADLY, business closures and high unemployment rates are the norm in these unprecedented times.
More and more Australian families are struggling to make ends meet.
A lot of people are diving into their super to get them through, but one money expert says this is less than ideal.
Noosa based financial educator Tom Ellison, also known as The Naked Investor, said Australians have taken over $9 billion out of their superannuation funds in the past two weeks.
"One of the things that have saved people is super, but the message from super industry is leave your super until your retirement," he said.
"In the current climate it is very different if they haven't got any money behind them or if their job is out the door," he said.
Mr Ellison has written a book titled, Super made sexy showing about getting people to engage with their super.
"It's more like super made sad in the current environment," he said.
"It's an opportunity to learn about their super and how it can work better for them."
Moving forward, Mr Ellison said the best advice is to adopt a simple savings strategy.
"Some people have never learnt how to save," he said.
"They always broke by payday."
"You really have to try to develop that saving habit," he said.
"It doesn't mean you have to reuse tea bags or live on beans.
"The older you get the harder it is to break those habits."