MyState Bank: 44% of Aussies to rein in spending for the rest of 2020

With international travel plans axed, employees working less hours and some savings accounts looking thinner, Aussies are starting to tighten their wallets. 

This is according to MyState Bank, who found that a large 44% chunk of Australians are wanting to cut back on spending on discretionary items for the rest of this year. 

The survey showed that there were a myriad of things people are wanting to spend less on over the next six months. Amongst them were gym memberships (44%), public transport (43%), home furnishings and decor (38%), takeaway food (38%) and clothing/footwear (36%).

“For many Australians, the introduction of social distancing measures has been an opportunity to save more than ever before on expenses from public transport to dining out at restaurants,” said Heather McGovern, MyState Bank general manager, customer experience.

“Being isolated has also compelled more Australians to consider new and more innovative and cost-efficient ways of doing things, like swapping out memberships at physical gyms for fitness apps. Our research indicates that Australians are likely to prolong their savvier spending habits even after social distancing measures have lifted.”

On the flip-side, the research also revealed that spending on both groceries and household utilities are actually likely to see increases in spending. In fact, over a quarter of Aussies say they predict they will spend more in those areas over the coming months. 

5 ways to be financially thrifty in 2020 

Are you one of the 44% that’s ready to put their savvy-spender hat on? If so, here are 5 tips on how to cut back spending and save money in 2020. 

1. Say goodbye to silly spending and create a budget: It’s time to cut the fat! You may have had a few “treat yourself” moments during lockdown, and that’s okay, but now you need to be a conscious spender. Limit yourself to spending a certain amount every week, fortnight or month and focus on what you need rather than what you want. A good way to do this is when your paycheck arrives, put a portion in place for everyday spending and send the rest straight into a savings account.

2. Pay down or consolidate debt: If you have lingering debt, it’s important to turn your attention to it first (to avoid hefty interest repayments). Whether it’s credit card, personal loan or car loan debt, putting money aside to pay it off is crucial. And if you have multiple debts, a debt consolidation loan may help you as you can pay down what you owe in one simple recurring repayment, and sometimes even save on interest as well.  

3. Find a better rate: If you have a home loan or personal loan, it’s worth having a look around at other interest rates on offer. You may want to haggle with your current provider and see if they are willing to offer you a more competitive option. Or, you can opt to refinance your loan with another lender for a lower rate. Not only could you save money for the rest of 2020 but over the remaining life of the loan.

4. Switch to a high-interest savings account: At the moment, the average savings account rate on the Mozo database sits at 0.70%, so chances are you aren’t getting a competitive rate. Making the switch to a high-interest account ultimately gives you more reward for the hard work you put into your spending. Just bear in mind, there are often deposit and spending conditions attached to these accounts. 

5. Put your money away in a term deposit: Need to remove the temptation to spend your savings? Lock it away in a term deposit. If you already have a bit of a nest egg saved up, with a term deposit you can keep it out of your touch anywhere from a month to several years. Plus, it’ll accrue interest over the deposit term without you having to do a thing.   

RELATED ARTICLE: Aussie spending: Why now's the time to consolidate your debt 

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