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Rising mortgage repayments are one of the biggest contributors to Australians altering their savings habits for 2023, according to a MyState Bank survey.
The non-major bank’s New Year Spending Survey asked more than 1,000 Australians on their savings intentions for the year ahead, with 74 per cent of respondents saying they expect to tighten their spending, with takeaway, streaming services, and dining out facing the budget cut chopping block.
However, many drew the line at savings suggestions such as cancelling gym memberships, taking up vegetarian diets, or cancelling holidays.
Around one in three respondents said they would have a new year’s resolution, with getting healthier, saving money, and spending less being the most popular.
MyState Bank managing director and chief executive, 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.
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“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.”
The top financial goals for 2023
Similar research has been conducted by BOQ into the top financial goals for its customers in 2023.
Taken from over 10,000 BOQ Group digital savings accounts on myBOQ and Virgin Money platforms, the research found that 33 per cent of its customers are saving to buy a home this year, followed by holiday savings (17 per cent) and setting up rainy day funds (14 per cent).
Other goals included saving for “something else” at 22 per cent, a new car (7 per cent), paying off debts (3 per cent), education (2 per cent), and getting married (2 per cent).
NAB and the Commonwealth Bank of Australia (CBA) also released research into consumer priorities in regard to new year’s resolutions, which indicated that financial stability is among the top goals for the year.
NAB’s findings showed 26 per cent of Australians have prioritised getting on top of their finances instead of travel plans, with a further 17 per cent putting it over common resolutions such as cutting down on social media or weight loss.
CBA’s research found that 93 per cent of respondents had some kind of financial goal for 2023, with 51 per cent indicating that their top financial goal was to reduce living costs and expenses and 50 per cent said they wanted to spend less on non-essential items.
NAB executive, everyday banking, Paul Riley, commented at the time that the research reinforced how much finance was top of mind for many Australians.
“It’s no surprise many people are willing to put other traditional new year resolutions aside to prioritise getting to grips with their money,” Mr Riley said.
“About 30 per cent of people aged 18–29 say they’d sacrifice travel to get on top of their money in 2023, while about 26 per cent say it’s more important than reducing time on social media.”
[RELATED: 33% of Aussies saving to buy a home: BOQ]
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