Quality food is one of the items not up for discussion when it comes to slashing costs, the Great Southern Bank survey found.
Shock research has revealed the biggest hit Aussies are taking beats both interest rates and housing prices combined, with many taking drastic steps to combat it.
A survey conducted for Great Southern Bank’s No Place Like Home report found almost half of all respondents (49 per cent) had changed their medium to long-term financial plans or savings strategy in the 12 months due to the cost of living.
That one factor alone outweighed even current interest rates (22pc) and property prices (15pc) combined, with the survey findings Aussies were taking a variety of steps to cope with everything up for discussion – except kids, pets and food quality.
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Dining out is now a luxury not an every-week occurrence for many.
Great Southern Bank chief customer officer Rolf Stromsoe said Australians were taking practical steps towards accommodating those cost of living pressures.
“They’ve made some hard choices on the way. Over half of Australians (54pc) have cut back on their entertainment costs, and almost two-fifths (38pc) have cancelled a subscription service.”
“The savings they are making with those economies are probably helping to pay for the things they won’t do without – the essentials and luxuries that matter most to them.”
Among the things Aussies are refusing to compromise on were quality food (44pc), their pets (31pc), and children’s needs (28pc).
Some key lessons learned include almost two-thirds (64pc) of homeowners saying they wished they’d set up savings habits while still in school and over half (52pc) wished they’d bought a home sooner.
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An inner Brisbane renter, Brianna (surname withheld), 36, has set up a special account to save for her pet’s needs.
An inner Brisbane renter, Brianna (surname withheld), 36, said she hopes to be able to have her own home one day, even if it feels like a pipe dream at present.
“I love where I’m renting, but it’s still a goal to one day own a home. I know it would give me a lot of security and stability, which is important to me. Sometimes it feels like every time you get ahead, another thing comes up, and it can make the savings journey challenging.”
“That said, I wouldn’t cut back on some things, like my dog, Piccolo – who I see as my dependent. Even though he is a very high needs dog, I would never skimp on him. He’s on a special diet with fresh meats every day, and he needs medication too, so I have a monthly vet subscription which helps me save money too.”
She has a savings account dedicated to her dog’s needs and has created other accounts for different goals.
“For example, I might change the name to whatever I’m working on, whether that’s ‘Uluru’, ‘A weekend in Melbourne’, or ‘Piccolo’ for my dog. One day, I do want to own a home, which is why I have my ‘Big’ savings account; I rarely touch this. I want to be able to afford a house and give my dog the yard he deserves.”
Mr Stromsoe said “it’s never too late to make smart financial decisions”.
“At Great Southern Bank, we provide Australians with practical tools, competitive savings products and expert tips to help save more effectively, grow wealth, and confidently take steps towards homeownership.”
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