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!

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


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?



Total Comments: 2
  1. 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)!



continue reading


Avoid these common mistakes people make with bleach

Bleach is one of the most effective and least expensive disinfectants around, but it pays to remember it's not an...


Concerns over limited data on how vaccine will affect over-65s

There are growing concerns that the vaccine expected to be given to the majority of Australians when the rollout starts...


Making healthy eating more affordable

Eating a healthy diet is crucial to our mental and emotional health as well as our physical wellbeing. It can...


Hands up who's in the club that is wrecking the planet

Alex Baumann, Western Sydney University and Samuel Alexander, University of Melbourne Among the many hard truths exposed by COVID-19 is...


The most iconic handbags of all time

While countless clothing trends have come and gone, certain handbags have remained desirable across the decades, as coveted now as...

Health news

Health check finds Australia is stressed and obese

One quarter (25.6 per cent) of Australians undergoing a health check have been identified as at risk of developing diabetes....

Finance News

Financial planning costly and complicated, say review submissions

A review of the financial advice sector seeking to cut red tape and provide affordable advice could lead to more...


Types of polyps and what to do about them

Polyps are clumps of cells that grow inside your body. While most polyps aren't dangerous, some can develop into cancer....