Budget blues: Aussies make lifestyle changes to manage rising costs
From downsizing to giving up alcohol, millions of Aussies are making significant lifestyle changes to protect their finances, according to new research by Finder.
A Finder survey of 1,062 respondents revealed 37% of Australians – equivalent to 7.7 million people – have made long-term lifestyle changes to manage rising costs in the past 12 months.
Almost 1 in 5 (19%) have opted for more affordable transport like public options, walking, or cycling.
Cost increases have prompted Aussies to take a hard look at their habits – 12% have stopped drinking, and 6% have stopped smoking.
The squeeze extends to living situations, with 6% opting to downsize their car, and another 6% planning to downsize their home.
Sarah Megginson, personal finance expert at Finder said many are feeling the financial pinch.
"As rising costs continue to be a burden, Aussies are getting creative with how they manage their budgets.
"This is a great reminder that even small changes can make a big difference when it comes to managing your finances."
The research shows 5% of Aussies have relocated to a more affordable area, and 3% are maximising space by renting out spare rooms.
Unsurprisingly, younger generations were more likely to make drastic changes to manage rising costs.
More than half of gen Z (51%), and 46% of gen Y admit to making long-term changes to adjust to inflationary pressures, compared to 34% of gen X and 17% of baby boomers.
Megginson urged Aussies to re-evaluate their spending and see where they can cut back.
"Whether it's finding cheaper alternatives to transport, or looking at your lifestyle spending to see what healthy changes you could make to save money as well, there are plenty of ways to stretch your dollar further.
"Implement a 'no-spend challenge' for a short period to identify areas where you can cut back on unnecessary expenses.
"Don't hesitate to seek help if you're under severe financial stress – many government websites offer support for those facing financial challenges," Megginson said.
| Have you made any of the following long-term lifestyle changes to manage rising costs in the past 12 months? | |
|---|---|
| Taken public transport, walked or rode a bicycle/scooter/skateboard more | 19% |
| Stopped drinking | 12% |
| Stopped smoking | 6% |
| Sold / downgraded my car | 6% |
| Downsized my housing | 6% |
| Moved to a more affordable area | 5% |
| Rented out a spare room | 3% |
| Moved interstate | 1% |
| None of the above | 63% |
| Source: Finder survey of 1,062 respondents, June 2024 |
Methodology
- Finder's Consumer Sentiment Tracker is a monthly recurring nationally representative survey of more than 60,000 respondents.
- Figures in this release are based on 1,062 respondents from June 2024.
- The Consumer Sentiment Tracker is owned by Finder and operated by Qualtrics, an SAP company.
- The survey has been running monthly since May 2019.
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