By Mina Martin
One in four Australians have recently cut their spending on food delivery services and entertainment amidst rising cost-of-living pressure, NAB research has revealed.
To make their money go further, Australians across the country are cutting back on non-essential spending. One in two switched to cheaper brands or actively looked for cheaper products, while about 28% cut back or cancelled subscriptions such as newspapers, magazines, or apps. Findings also showed that about 25% reduced or stopped streaming services or cut back on gym memberships and another 22% cancelled or cut back on outsourcing home services like lawn mowing and house cleaning. Some 19%, meanwhile, cancelled or cut back on activities such as sport, dancing, or hobbies to save extra cash.
The NAB research also found that Australians are making incremental changes in their daily behaviour to save some money. Some 44% cut back or stopped buying micro treats such as coffees, snacks, and lunch, 43% started by creating a budget and kept better track of their spending, and 34% delayed or made more modest travel plans. Some 34%, meanwhile, cut back or cancelled charitable giving, and 29% cancelled or delayed a major household purchase such as a TV, fridge, or washing machine.
Rachel Slade, NAB group executive personal banking, said the survey showed Australians are being creative and flexible when it comes to managing their money.
“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,” Slade said. “This research reflects the conversations I’ve been having with our customers – people are finding ways to make short-term changes and get on top of their money. There are options available to customers to help them stay in control of their money, whether that be creating a budget, bucketing funds, immediately transferring savings into a separate account to reduce the temptation to spend, or making accounts invisible. And we have a team of experts in money at NAB to help step you through them.”
NAB customers having difficulties are encouraged to contact the bank.
“We are here for our customers – if you feel like you are under pressure, we want to talk to you and find out how we can help,” Slade said.