Aussies cutting back on everyday spending amid cost of living crisis
We’ve all noticed or heard about the increase in price of everyday items, such as basic food, veggies, coffee and petrol.
New research by NAB finds that many Aussies are cutting back on various non-essential costs and changing the way they behave in order to save money due to the rising cost of living.
NAB says that half of those surveyed have switched to cheaper brands or are actively looking for cheaper products in order to make their money go further. In addition to shopping smarter, many Aussies are also making sacrifices in their everyday lives to save money.
What are people sacrificing?
NAB’s research shows that Aussies are specifically cutting back on food, streaming services, the gym and small treats, among other things.
Here's the breakdown from NAB:
- One in four Australians have recently cut their spending on food delivery services and entertainment.
- About 28% cut back or cancelled subscriptions such as newspapers, magazines and apps.
- About 25% reduced or stopped streaming services or gym memberships.
- About one in five cancelled or cut back on activities such as sport, dancing or hobbies.
- 44% cut back or stopped buying micro treats such as coffees, snacks and lunch.
- 43% started by creating a budget and keeping better track of their spending.
- 34% cut back or cancelled charitable giving.
- 29% cancelled or delayed a major household purchase such as a TV, fridge or washing machine.
NAB group executive personal banking, Rachel Slade says “We can see the impact of inflation starting to show with prices moving up and we know many Australian households are already feeling cost-of-living pressures.”
Other ways you can save money
If you are feeling the pressure of the rising cost of living, there are some ways you can save money, instead of sacrificing things you enjoy such as entertainment or hobbies.
- Consider your bills, for example, mobile phone, home internet and energy bills and do some research to see if you could be saving by switching to a cheaper plan.
- Set a budget and track your spending to find patterns and limit future unnecessary purchases.
- Workout at home instead of at the gym.
- Consider using public transport more often to reduce the amount of petrol you use.
- Bulk buy products to save money.
Need help creating a budget to stay on track with your spending? Check out our budget calculator.