Aussies planning to rein in unnecessary spending in 2021

Font Size:

While many may rue the pandemic for ruining retirement savings and nest eggs – at least in the short term – it seems it’s also taught Australians valuable money lessons that will benefit them in future.

A MyState Bank survey reveals that almost half (48 per cent) of the 1000 respondents want to better manage their money by reining in spending on discretionary items during the first six months of the new year.

The survey shows a silver lining from the pandemic, as Australians now wish to be more engaged with their finances. Three in 10 Aussies are now looking to either start or maintain a budget.

“More consumers are actively questioning their needs versus wants at the checkout and, according to our latest research, aligning their financial behaviour accordingly,” said MyState Bank general manager, customer experience, Heather McGovern.

“It is encouraging to see many Australians seeking out ways to build a financial buffer, whether that is by having a staycation, cooking more at home, or swapping the gym for outdoor exercise.”

More Australians are looking to futureproof their finances by paying down their debts now in order to protect themselves from future economic shocks.

According to the results: “Paying off interest-accruing debt also proved high on Australians’ list of new year money resolutions, with one in five planning to pay off their mortgage faster. Meanwhile, 17 per cent of consumers resolved to tackle credit card and personal loan debt”.

They’re also actively trying to save money, with 50 per cent of respondents saying they plan to spend less on travel over the next six months.

But these planned savings may have as much to do with effects of the pandemic on some sectors as they do with deliberate changes to consumer intentions.

“Despite life returning to some level of normality, our research shows the COVID-19 pandemic continues to impact Australian’s spending. For instance, the closure of gyms at the height of social distancing restrictions caused many Australians to invest in a home gym or complete workouts online. It seems some of these habits are carrying over well into the new year, which can spell good news for our wallets,” said Ms McGovern.  

The research shows that consumers are also less likely to spend on gambling, toys and games, takeaway food and delivery, alcohol and cigarettes, and skincare and make-up.

Are you planning to reduce your spending on discretionary items this year? What type of spending behaviours do you plan to change or reduce this year?

If you enjoy our content, don’t keep it to yourself. Share our free eNews with your friends and encourage them to sign up.

Join YourLifeChoices today
and get this free eBook!

Join
By joining YourLifeChoices you consent that you have read and agree to our Terms & Conditions and Privacy Policy

RELATED LINKS

Spending patterns in retirement a confusing issue

Who says what about how much retirees are spending - and when.

Spending plummets and consumer confidence hits all-time low

Spending plummets and consumer confidence survey shows the largest monthly fall on record.

Knowledge is power in juggling your spending in retirement

Will you spend more in retirement than during your working life? Will your spending change as

Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

Contact:
LinkedIn
Email

2 Comments

Total Comments: 2
  1. 0
    0

    Was already doing all of this since day dot (thus my home loan was finally paid off late in 2019, after paying out 2 exes along the way). Never seems any choice but to budget here, theres always something breaking down (if its not the cars, it’s the bloody house or contents of the house or mowers & other such equipment)!


FACEBOOK COMMENTS



SPONSORED LINKS

continue reading

Finance

Making it easy to buy Australian

Research shows that since the pandemic an overwhelming number of Australians want to buy locally produced products to support the...

Finance

What your car costs - the surprising costs of driving a ute or SUV

Recent research by Finder shows Australians could be paying thousands of dollars more than necessary to keep their car running....

Finance

Best grocery shopping apps

For those aiming to reduce their weekly grocery bill, there are many ways to save at the supermarket.  While the...

Aged Care

Government releases five-year road map to fix a 'national disgrace'

The federal government has delivered its 'initial' response to the Aged Care Quality and Safety Royal Commission findings, with a...

Aged Care

Aged care, death and taxes after the royal commission

Anna Howe, Macquarie University The governor-general was handed the report of the aged care royal commission on Friday. It will...

Health

Honey drinks could be a tasty cold remedy

If you're feeling under the weather, something as simple and accessible as honey could be a tasty remedy. New research...

Prevention

How to find and exercise your pelvic floor muscles

Do you wet yourself a little bit when you laugh, cough or sneeze? Then you might be among the one...

COVID-19

What we know about the recently approved single dose vaccine

Some health experts have expressed concern at the efficacy of the AstraZeneca vaccine, with some stating that we 'only get...

LOADING MORE ARTICLE...