Six months ago, Australians were optimistic. Now, we’re cutting back on toothpaste

November 8, 2026 — 5:05am

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When it comes to expectation versus reality, what a difference six months can make.

It was only back in March that 40 per cent of Australians said they were expecting their financial situation to improve this year. Cut to today, and we see almost the same number of people now expect their situation to get worse over the coming 12 months.

While there have been plenty of bumps along the economic road recently, for many people, the successive pinches are suddenly being felt all at once. In 2026 alone, the RBA has handed down five interest rate rises, and the cost of living has been persistently rising, with housing, insurance and transport being the main drivers, according to the Australian Bureau of Statistics.

The problem with these pressures building slowly over time and peaking now – along with the cost of other everyday essentials like groceries and utilities also growing – is that it’s creating a very real sense of financial pessimism and hopelessness for millions of people.

Though having a sense scepticism and pessimism can actually be a good thing for most of us (this can be what steers us away from scams, helps us invest prudently and manage debt, for example), it’s when the scales tip, and we have too much of it that it can become a big problem.

Because while it’s one thing to always make sure you have........

© The Sydney Morning Herald