The start of a new year is a great time to hit the refresh button, and Aussies are planning to make some budget cuts as the cost of living skyrockets.
More than 70 per cent of Australians said they expected to tighten their spending in 2023, with dining out, takeaway coffees and streaming services the first to face the budget cuts according to the MyState Bank New Year Spending Survey.
But, while the majority of Aussies said they were determined to save this year, many drew the line at savings suggestions like quitting a gym membership, turning vegetarian, or cancelling a holiday.
Also read: 5 ways to save almost $13,000 in 2023
MyState Bank CEO Brett Morgan said it was clear 2023 would be the year for being thrifty.
“Australians are watching their money, and that focus is set to sharpen across 2023, which is shaping up to be the year of the great Aussie belt tightening,” Morgan said.
“Around 74 per cent of Australians say they expect they will need to spend less this year, and the biggest drivers behind that are the rising cost of living, higher mortgage repayments and the increasing cost of rent.
“Saving for something special, including a house, was also among the top reasons Australians are looking to save more money.”
Around one in three of survey respondents said they would have a new year’s resolution, with getting fit and healthy, saving money and spending less proving the most popular.
“Almost half of all Australians are planning to start a new money habit in 2023, and spending less is top of that list, followed by sticking to a budget and making an investment,” Morgan said.
“When it comes to exactly how Australians plan to spend less, it is life’s optional extras that are top of the hit list. By a long shot, the most popular ways to save are eating out less, packing your own lunch, not buying coffees and cutting streaming services. But it is the least popular ways to save that gave a true insight into who we are as Australians, with the survey painting a picture of Australians as meat-loving, gym junkies who love a holiday.”
Morgan said it was great to see so many Australians were taking the opportunity to reset their finances and start 2023 fresh.
“The new year is a great chance for a clean slate and a fresh start when it comes to finances,” Morgan said.