subscribe to our newsletter

Aussies prioritise ‘building up rainy day savings’

‘Rainy day savings’ and ‘saving enough to buy a property to live in’ are among the top financial goals for 2021, a new survey has found.

According to ME Bank’s latest research, conducted by Pureprofile in December 2020, the majority (44 per cent) of 1,000 Australians surveyed have prioritised ‘rainy day savings’ as their top financial goal for 2021. This was third place in 2019.

Saving for ‘a holiday, car or other expense other than a home’ was the second most-cited financial priority for 2021 (37 per cent), with ‘saving enough to buy a property to live in’ rounding off the top three.

According to the survey, 22 per cent of respondents stated ‘saving for a residential property’ was a top financial priority this year (up from 21 per cent last year).

Additionally, the survey found that ‘paying off a mortgage’ has increased in importance, ranking in sixth place (16 per cent) this year.


Other top financial goals that had increased in importance this year included ‘reducing expenditure on expensive habits’, ‘setting up a budget or savings plan’, and ‘not building up any more debt’.

Noting these changing priorities, ME Bank suggested that there was “a desire to improve financial security” following the challenges of 2020.

Indeed, the study found that over half of Australians (54 per cent) said COVID-19 has ‘forced them to change their 2021 financial goals’, with two-thirds (66 per cent) saying the pandemic had ‘enlightened them with the importance of building up rainy day savings’.

The largest challenges Australians faced when reaching their 2021 financial goals were found to be ‘inadequate incomes’ (41 per cent) and ‘expenses’ (37 per cent). This was followed by the direct ‘impact of COVID-19’ (28 per cent).

ME’s general manager of personal banking, Claudio Mazzarella, stated that the findings reflect a step in the right direction, given ME’s latest Household Financial Comfort Report showed that 21 per cent of Australian households had less than $1,000 in cash savings.


“In uncertain times, it pays to focus on what you can control. Growing a stash of emergency money can be good for your bank balance – and your peace of mind…

“The majority of Australians will be saving more and thinking about what to best do with their money in 2021,” Mr Mazzarella said.

[Related: More home owners expect house price rise in 2021]

Aussies prioritise ‘building up rainy day savings’
Aussies prioritise ‘building up rainy day savings’

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Latest News

The IMF has urged Australia to consider reforms around housing supply and lending standards, citing apprehension around the upsurge in prope...

Treasurer Josh Frydenberg has backed the net-zero emissions by 2050 target, warning failure to comply will hurt banks’ access to capital a...

The regulator is set to release information setting out how it would use macroprudential policy tools, after expressing concerns around the ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.