More than 70 per cent of Australians say they expect to tighten their spending in 2023, with dining-out, takeaway coffees and streaming services the first to face the budget cuts according to a new survey.
But, while the majority of Australians say they are determined to save this year, many draw the line at savings suggestions like quitting a gym membership, turning vegetarian, or cancelling a holiday.
The MyState Bank New Year Spending Survey asked more than 1,000 Australians to gaze into the crystal ball about their spending in the year ahead.
MyState Bank Managing Director and CEO Brett Morgan said it was clear that 2023 would be the year for being thrifty.
“Australians are watching their money, and that focus is set to sharpen across 2023, which is shaping up to be the year of the great Aussie belt tightening,” Mr Morgan said.
“Around 74 per cent of Australians say they expect they will need to spend less this year, and the biggest drivers behind that are the rising cost of living, higher mortgage repayments and the increasing cost of rent.
“Saving for something special, including a house, was also among the top reasons Australians are looking to save more money.”
Instead of getting down and out about money woes, Australians are dusting themselves off this New Year and taking the opportunity to reset their financial fortunes for 2023.
Around one in three of survey respondents said they would have a New Year’s resolution, with getting fit and healthy, saving money and spending less proving the most popular.
“Almost half of all Australians are planning to start a new money habit in 2023, and spending less is top of that list, followed by sticking to a budget and making an investment,” Mr Morgan said.
“When it comes to exactly how Australians plan to spend less, it is life’s optional extras that are top of the hit-list."
“By a long shot, the most popular ways to save are eating out less, packing your own lunch, not buying coffees and cutting streaming services."
“But it is the least popular ways to save that gave a true insight into who we are as Australians, with the survey painting a picture of Australians as meat loving, gym junkies, who love a holiday.
“The survey confirmed that the least popular options to save money were turning vegetarian, cancelling or changing a holiday and quitting a gym membership.”
Mr Morgan said it was great to see that so many Australians were taking the opportunity to re-set their finances and start 2023 with a clean slate.
“The new year is a great chance for a clean slate and a fresh start when it comes to finances,” Mr Morgan said.
“MyState Bank is committed to helping Australians get back on track with their money, including through our *Clean Slate initiative which encourages people to turn their money mishaps into an opportunity for a fresh financial start. Savings accounts are a great way to kick this into action.”
Looking ahead to what 2023 may hold, Mr Morgan said it would be a year of mixed fortunes.
“In a nutshell, 2022 was really tough financially for many,” Mr Morgan said. “In 2023, we expect there will be more economic swings and roundabouts."
“Unfortunately, the cost of living pressures and threat of further Reserve Bank of Australia rate rises, which were a feature of 2022, aren’t going away just yet."
“But, as our survey shows, many Australians are looking to tighten their belt in 2023, which is exactly what the RBA has been trying to achieve with their rate rises, as lower spending will help curb inflation."
“We wish everyone a Happy New Year, and as always encourage any MyState Bank customers who are concerned about their finances to give us a call.”
About the research
Nationally representative survey conducted by Pureprofile of 1,006 Australians, from 16th to 19th December 2022.
About MyState’s Clean Slate
*For eligibility criteria and full product T&Cs visit mystate.com.au for full details. Product issued by MyState Bank Limited ABN 89 067 729 195 AFSL 240896.
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