Aussies are not worried about spending money this year with Easter the first big celebration
Nearly half of all Australians (40%) are not worried about spending money this year as we start to emerge from the pandemic, and are looking to splash the cash starting with Easter, according to new research out by MyState Bank.
Following a year of keeping an eye on spending, 2021 seems to have some light at the end of the tunnel, with 80% of us planning to celebrate the Easter holidays catching up with family and friends and making the most of the long weekend.
When it comes it splashing the cash for the holiday, nearly a quarter of us (22%) are looking to spend more than they normally do at Easter and over a third (38%) are planning to spend between $100 and $250.
When asked about how they will be paying for Easter, only 18% admitted they will be using credit to pay, with three quarters (76%) using cash or direct debit.
Commenting on the findings, Heather McGovern, MyState Bank General Manager of Digital and Marketing, said that Australians have been showing good intent with their finances over the last year and are keen to loosen the purse strings and enjoy the holiday.
“We are finally starting to emerge from a tough period, so seeing people wanting to relax and enjoy their hard-earned money is not a surprise. What is positive is that very few Australians are reliant upon credit to get through this holiday, putting them in a stronger financial position to continue the rest of the 2021,” said Ms McGovern.
Personal finances a focus for Australians this year
The research highlighted that Australians are planning to not only spend more money this year, but also really focus on their finances and improving their financial situation.
Over half are planning to save more money this year (55%) and a quarter (22%) will be focusing on paying down their home loans as a priority. One in five (21%) will be trying to avoid using credit as frequently, and 18% are trying their luck with investing and creating an investment portfolio.
“2021 is fast becoming the year for Australians to knuckle down and focus on their personal finances. For those who were able to achieve some financial milestones in 2020, now is the time to start to build on that. For others, 2021 is the year to establish a solid foundation for yourself with your finances,” said Ms McGovern.
“Smart planning and the right approach can help you to make good on your financial goals.”
Here are MyState Bank’s five tips on how to make your financial resolutions stick into 2021:
- Set SMART goals. The trick to staying the course is to set realistic and specific goals. Many of us start to simply save more money but the ambiguity of this goal can see it fall by the wayside after the first few weeks. Try turning your goal from “I want to save more money this year” to “I want to save $5,000 by October.”
- Work out ‘how’. We rarely give much thought to the concrete steps that need to be put in place to achieve our money goals. This means breaking down your goals into smaller, achievable tasks. For example this might mean breaking down an overall savings goal of say $5,000 to be $150 a week.
- Check up on yourself. On a weekly or monthly basis, or whenever you get paid. In some cases, your bank can do the heavy lifting for you. The Insights feature on the MyState Bank app provides a comprehensive overview of your financial situation including exactly what your money is being spent on and if any big bills or changes in income are on the horizon.
- Automate it. Some of the hard work towards achieving your money resolutions can be taken out by automating wherever possible. Setting up a high interest savings account and getting paid directly into this account will help. The ‘Autosavings’ capability in the MyState Bank app is another example, helping you recognise how much you can safely afford to save and moving the funds for you – without you having to lift a finger.
- Put it out there. Oftentimes, we use a friend or significant other to hold us to account on our fitness goals – our financial resolutions are no different.
