Australian households are maintaining their focus on increasing savings, with 82 per cent of respondents to a new survey saying they would use an increase in salary to reduce debt and add to savings.However, the latest ING Direct Household Financial Wellbeing Index shows that it is getting harder for people to achieve those objectives.The median household savings level in the March quarter was $14,702 - down from $15,472 a year earlier. Fifteen per cent of households reported that they had no savings.The number who said they were making extra payments on their mortgages fell from 49 per cent in the December quarter last year to 42 per cent in the March quarter. The number who said they were falling behind in their mortgage payments rose from two per cent to four per cent over the same period.Households are feeling squeezed. Sixty-three per cent said they had experienced a cash shortfall between paydays during the quarter and 46 per cent said they needed at least $300 a week more to feel comfortable about their income.Canberra University's National Institute for Social and Economic Modelling confirmed this impression, with research showing that wages rose by 0.1 per cent in the December quarter, while living costs rose by 0.7 per cent.The Australian reports that NATSEM's index of living standards dropped in three of the past five quarters.ING Direct's executive director of customer, John Arnott, said the overall financial wellbeing index took a dip in the March quarter.