A recent research has shown that Australians are inclined to gamble the most among all nations where gambling is legal. A recent study by the Economist has shown that gambling losses in Australia are the highest in the world at $1144 per resident leading to sky high debt among individuals. A disturbing factor which emerged in these studies was that in April 2014 household debt was at 177 percent of disposable income annually. In other words, it is obvious that when it comes to spending, Australians are more reckless than others. According to a financial advisor working on this study, the reason behind this phenomenon is the confidence that Australians have about their money making ability. They know that they are spending recklessly but are equally confident that they will earn it back.
Dangers of overspending
Economists however warn that this situation can turn out to be very risky if families do not have a backup plan, as was evident during recent economic downturn. A classic example of risky behaviour is that of miners who work for years in dingy mines and then blow the money on expensive and unnecessary toys like jet skis and cars along with holidays in extravagant locations. The general behaviour is inclined towards reckless impulsiveness that is a part of human nature. To curb this behaviour society needs to be supportive to encourage frugality and slowly become financially debt-free.
Remedy under the circumstances
Psychology researchers believe that Australians have a mindset of either a saver or an earner which limits their ability to control impulsive purchases. They are unable to grasp the importance of investment and wealth as they are still rooted in the convict mentality that the rich are greedy and authoritative. Caught up with a false sense of bravado some investors make reckless decisions as they risk personal wealth and lose money that they actually need. A recent government study revealed that nearly half of Australian population consist of gambling addicts and are a burden on families and friends as they gamble on virtually anything that they can lay hands on.