Aussie households 'saved $74bn in 2010'

Australia appears to be quite a frugal nation, with households saving $74 billion in 2010, which is now leading to debt being reduced and a growing number of people getting ahead on their mortgage repayments.

According to the Australian, an average of $3,300 was kept back per capita – or ten per cent of all disposable income being put into savings accounts – and now fewer people are borrowing against their homes to purchase consumer goods.

The news source went on to note that this sense of caution where money is concerned should be maintained in the future, since it is likely that many people will not be able to keep themselves in the lifestyles to which they have become accustomed when they retire on their pension alone.

"Five or six years ago, Australian households spent every dollar of income and at times a bit more. Thriftiness is back," it further observed.

This comes after psychologist Dr Timothy Sharp said cutting back on expenses can provide a greater sense of satisfaction over the long term.

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