More than half want to create a budget, survey says
Australians are ushering in the new year with plans to avoid financial stress, according to online financial broker Savvy.
In the Savvy survey of 1,000 Australians about their plans to pay off large Christmas expenses and how they will stay in financial control in 2023, more than half (53%) said they have plans to create a budget to keep on top of their finances.
The groups found to be most likely to create a budget were women (62%), along with Australians within the ages of 25 and 34 (65%) and 35 to 44 (62%).
Another 12% (9% of men and 14% of women) said they had used a budgeting app, while 7% said they would consult a financial planner or adviser.
A total of 16% of respondents said they were looking to set up an automated savings plan, such as direct debit to savings account or managed fund. This included 12% of men and 20% of women.
Meanwhile, nearly a quarter (24%) of Australians said they’d handle financial pressures by simply earning more money than they did last year, with the 18-24 demographic being the most optimistic at 36%.
Other financial plans reported in the Savvy survey include paying more into a mortgage offset account (12%) and making investments (16%), with 12% favouring shares and 4% opting for cryptocurrency.
The Budget Nation 2023 survey by Savvy also looked into how Australians are planning to pay off their Christmas expenses, taking in account Australian Retailers’ Association figures showing pre-Christmas sales in excess of $74.5 billion, an increase of 8.6% over the previous holiday season.
A majority of respondents (64%) said they would use their savings to pay off these expenses, while 25% said they would use income from their paycheque and only 14% said they’d rely on their credit card.
Savvy spokesperson and personal finance expert Adrian Edlington (pictured above) said the economic pressures of the past year, caused by inflation and higher interest rates, served as a “crash course” on better managing personal finances.
“Over the last couple of years Australians have had to really pay attention to every dollar that comes in and out of the household, and people are making more responsible choices with their finances as a result,” Edlington said.
He said Savvy’s Boxing Day sales survey, looking at how many people planned to buy goods during the period found that 76% Australians said they would only use their savings to fund their Boxing Day purchases if they were buying post-Christmas and 48% said they wouldn’t be making any purchases at all.
“This could all indicate Australians are beginning to spend only within their means, so they could be better prepared for whatever economic ups and downs may eventuate during 2023.”
Meanwhile, a survey conducted by Savvy in September found that Australians were becoming increasingly concerned that inflation will eat into their savings, with 24% revealing they saved only $250 or less each month.
The survey showed, 43% were either unconfident or not confident at all that their investment returns would continue to outpace prices. A further 37% were neutral or unsure, and 19% were confident or very confident that their returns would be higher.
