Almost a third of Australians are living pay cheque to pay cheque, according to the BT Australian Financial Health Index.
The index found there was a "deep divide" in terms of Australian's attitudes to money management and planning for the future between those who were financially prepared to cope with current and future household expenses and those who were barely able to meet their everyday commitments.
BT said 17 per cent of respondents would struggle to find $500-1000 to deal with an emergency, while 39 per cent would have to readjust their lifestyle to deal with a loss of income for three-to-six months.
Although 41 per cent said they were able to meet their monthly expenses, a third said they were worried about their ability to do so.
BT general manager Deanne Stewart said the index revealed that people's ability to manage their money did not always depend on their pay cheque.
High-income earners also admitted living pay cheque to pay cheque, Stewart said.
"In many instances people are living in the hope that they will achieve their goals rather than planning for a fulfilling and secure future," she said.
Only one third of respondents said they had developed a plan to meet their financial goals, while more than half said they were unable to save as much as they liked.
"Surprisingly 57 per cent have no savings plan and this figure peaks amongst 45-54 year-olds, when they might expect to be at the height of their earning capacity," she said.
Stewart said more than half of respondents paid down their credit card every month, reflecting a desire to steer clear of debt.
Almost half (48 per cent) said they rarely or never made contributions to a super plan.
The index showed Australians wanted to gain more control over their finances but were uncertain of how to go about it, according to Stewart.
