Ah, the sweet anticipation of New Year’s resolutions is upon us – that time when gyms overflow, and kale shakes make a valiant comeback. Well, perhaps not this year. Instead, many Australians are gearing up to tighten their purse strings, as new research reveals that ‘saving money’ tops the list of New Year’s resolutions for many ahead of the upcoming year.
During this Christmas season, Aussies were estimated to spend a staggering $67.4 billion in November and December 2023, showing a 1% increase from the previous year. That breaks down to about $646 per person – a notable $700 less than the preceding year. After navigating a challenging year of cost-of-living pressures, Australians have started their saving journey sooner than expected.
Typically, as the new year unfolds, most people contemplate shedding those holiday kilos. However, this year calls for a different focus – it might be time to trim excess expenses. Make 2024 the year to curtail unnecessary costs and bulk up your savings; think of it as a financial diet.
According to Compare the Market’s latest research, almost half (49.7%) of surveyed Aussies express their intention to save more money in the new year – marking a 7.1% increase over the past 12 months. The cost-of-living crisis is hitting Gen Z the hardest, with three-quarters (76%) of the cohort aiming to stash away more cash in 2024. In contrast, just 24.8% of Baby Boomers, 46.4% of Gen Xers, and 68.2% of Millennials listed saving as a top resolution.
Consider adopting these money-saving hacks:
- Cancel unused subscriptions or, if you have multiple streaming services, limit it to one or two.
- Compare your bills to find better rates.
- Refinance your home loan to potentially save thousands by exploring alternative lenders.
- Change your payment frequency from monthly to fortnightly to reduce overall interest.
- Limit buying lunches during the workweek to one day, we like to call it ‘lunch order Fridays.’
- Opt for budget-friendly socializing, like picnics instead of brunch outings.
- Shop around; supermarket giants have seen a 10% rise in food prices in the last 12 months.
- Track your spending for a month, jot it down, and review it. Witness how small online purchases can accumulate rapidly.
As we welcome the new year, let’s remember that resolutions aren’t made to be forgotten by February. Your commitment to financial well-being is a journey, and the above hacks are just the initial strides on this path. So, as the clock strikes midnight and the confetti settles, let 2024 be the year you transform financial goals into reality. Trim unnecessary expenses, build up those savings, and witness your financial health flourish. Remember, the road to financial success is a marathon, not a sprint. Here’s to a prosperous and financially fit year ahead! Cheers to resolutions that truly stick.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent. Content developed in partnership with IFPA.
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