Sticking to your New Year’s resolutions can be hard work: according to studies, around 23 per cent of people will quit their resolution after a measly seven days.
And while Aussies spent $4.7 billion on fitness products at the beginning of 2018, more than 1 million gym memberships go unused.
However, a financial imperative can help you remember those targets.
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According to the money-savers at Mozo, Australians could save $15,718 in 2020 if they stuck to eight New Year’s resolutions, with cutting out boozy nights saving a whopping $4,680 alone.
“If you are facing a sizeable headache on New Year’s day morning it might be time to consider curbing your drinking habits. Reducing your social drinking by two nights a week could save $4680 a year,” said Kirsty Lamont, Mozo director.
“It’s great to remember that you can socialise without drinking, but if you are going to have a few beverages, avoid buying drinks in rounds with friends, as this quickly locks you into drinking and spending more money,” she added.
If that’s too big an ask, there are smaller changes you can make, like cutting back on food delivery.
Mozo estimates that if you are currently buying a $12 lunch, five times a week, you could save $3,210 by preparing your lunch.
If you regularly go out for lunch with friends, another way to compound that saving is to swap out the bought lunch for a walk or run with your friend.
“Getting fit in the New Year is a common resolution for many Australians, but you really need to weigh up whether you are using your gym membership enough to justify the cost,” the Mozo expert said.
“If you are more likely to go for a walk with friends or swimming, giving up unused gym membership could save you $780 a year.”
Here’s the full breakdown of Mozo’s savings plan:
Is cutting back the only way to meet my financial goals?
While it’s certainly true that reducing your daily coffee purchases could save you some serious cash, it’s also worth remembering that making more money can be a better way to make money, rather than just cutting back.
“A lot of ‘saving advice’ focuses on cutting down expenses, and although this is important there is a limit to how much you can cut back,” said financial education company SkilledSmart founder Paridhi Jain.
“If you cut back too much, you’ll start to feel deprived and it’s not always sustainable.”
Jain said you can make money by selling unwanted items on Facebook Marketplace, where she herself made $775 in 30 days.
“It was a lot more fun than depriving myself of eating out!”
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