Aussies Cutting Back on Luxuries : With the rising cost of living placing greater pressure on budgets, financially stretched Australians are scaling back on small indulgences to save a little extra.
Budget-conscious Australians are expected to forgo small luxuries like takeout, coffee, and even travel in 2025 as the cost-of-living crisis intensifies.
According to new research by Compare the Market, 77% of Australians—nearly 3 in 4—acknowledged plans to cut spending in the new year to bolster their savings.
Takeaway meals topped the list of expenses being reduced, with clothing, holidays, streaming services, and coffee outings also among the sacrifices many are considering.
Aussies Scaling Back on Luxuries to Save Amid Rising Cost of Living
Compare the Market general manager Chris Ford noted that households are exploring new ways to reduce expenses and grow their savings.
“We’re observing a trend where Australians are choosing to forgo what might be considered life’s little luxuries to save more,” Mr. Ford said.
He suggested there might be another reason Australians are cutting back on these items.
“Many people aim to adopt healthier habits in the New Year, so it’s not surprising that so many are planning to reduce their takeaway meal consumption,” he explained.
Mr. Ford also pointed out the financial impact of takeaway meals. “For families or individuals treating themselves during the work week, takeaway can be quite costly.
When factoring in food delivery apps, the expenses can add up quickly, depending on what you order.”
How Australians Are Cutting Back on Takeout, Travel, and Other Small Indulgences to Boost Savings in 2025
“It’s understandable that Australians would opt to save money by skipping the occasional burger or pizza rather than cutting other expenses.”
Younger Australians, particularly millennials, are significantly more likely to reduce spending on takeaway meals, with 34.2% planning to cut back compared to just 14.4% of Baby Boomers.
“The differences between the generations were quite surprising,” Mr. Ford remarked.
“Millennials and Gen Z are more than twice as likely as Baby Boomers to say they’ll reduce spending on takeaway meals.”
“Younger generations may traditionally spend more on dining out and are likely aware of how this habit is impacting their savings.”
Contributing to the focus on health, Australians are also planning to cut back on alcohol and vaping or smoking in 2025.
Travel emerged as one of the top three spending cutbacks for 2025, with 7.2% of Australians surveyed planning to forgo holidays in the new year to save money.
“With airfare prices soaring in the post-Covid era, it’s no surprise that travel is among the top expenses Australians are avoiding to increase their savings,” Mr. Ford explained.
“Even domestic travel costs have risen recently, especially with airlines servicing regional areas closing down,” Mr. Ford said.
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He suggested that Australians could find alternative ways to save without entirely cutting out the things they enjoy.
For instance, you could use the time between Christmas and New Year to review your current energy plan or insurance costs to see if there are any savings to be had. You might be paying more than necessary without realizing it, which could free up extra funds in 2025 to spend on the things you love.”
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