Aussies have saved around $337 a month on average by asking themselves three simple questions before spending: shelve it, shrink it or scrap it?
The latest NAB Consumer Sentiment report found that if these habits continued into 2025, savings buffers could be boosted to over $4000 annually.
As Australians set their budgets for the new year, the data revealed the top three areas where spending was most adjusted in the last quarter included:
- Dining out less: Cut back by 52%, saving people $131 per month.
- Skipping sweet treats or an extra coffee: Cut by 48%, saving people $63.
- Less trips to the cinema or concerts: Cut by 45%, saving people $72.
Fewer people have chosen to save by cutting back on major household expenses, but the biggest savings could be made in this category at around $432 per month.
NAB Executive Paul Carter said this showed that despite cost-of-living fatigue, Australians were continuing to prioritise sticking to their budgets.
“There wouldn’t be many Australians who haven’t changed their spending behaviours because of higher living costs,” Mr Carter said.
“2024 was about setting the right financial foundations, and now people are more confident in their saving habits.
“Even though inflation looks to be heading in the right direction, people are still considering if they can pause, pinch or park upcoming spends.
“They’re finding smarter ways to stretch their money without sacrificing what they love. Whether it’s holding off on updating appliances around the home or opting for something second hand, packing their lunch instead of grabbing takeaway or choosing a park catchup with mates over a night out, these small changes are making a big difference.
“Last year, we thought Australians had already cut back as much as they could. But they’ve revised their budgets and managed to save an extra $30 each month compared to the previous quarter.”
Nearly half of those that made cutbacks in the past three months have deposited their extra savings into savings or offset accounts, up from 43% in the previous quarter. Younger
Australians are leading this trend, with six out of 10 putting their additional funds into these accounts.
“Most Australians are more engaged with their finances than they’ve ever been,” Mr Carter said.
“So, while the cost of living remains a challenge, they’re prioritising building up their savings buffers to get ahead, or shaving interest off their mortgage.”
Notes to editors
- Data sourced from NAB Consumer Sentiment Q4 2024 survey of more than 2,000 Australians.
