Australians are going without everything from prosecco to private health insurance as cost of living pressures persist, according to new research by comparison site Finder.
A Finder survey of 1,012 respondents revealed more than 1 in 2 (54%) – equivalent to more than 11 million people – admit the cost of living has had a negative impact on their lifestyle.
Among the luxuries Australians are giving up for the sake of their bank account:
- 33% have cut back on eating at high end restaurants
- 27% have gone without drinking expensive alcohol
- 25% have stopped staying at five-star hotels
- 25% no longer buy designer clothes
- 21 5 have cut back on beauty treatments
- 16% have downgraded travel, and
- 15% have sacrificed gym memberships.
But it’s not just luxuries on the line – a whopping 8% have downgraded from gold private health insurance to a lower tier to combat rising expenses.
Sarah Megginson, personal finance expert at Finder, said rising prices and interest rates are forcing Aussies to change how they live.
“Prices of nearly everything are far higher than before the pandemic and some are having to make drastic lifestyle changes to cope,” she said.
“Aussies have been forced to become more budget-conscious with their spending habits and little luxuries they once enjoyed are now on the chopping block.”
Gen Z (69%) and gen Y (66%) were more likely to say they’ve made sacrifices to cope with financial pressures than gen X (48%) and baby boomers (36%).
Ms Megginson said cutting back on luxuries is the definition of a ‘champagne problem’, while many households are struggling to afford food and rent.
“There’s a much more harsh reality for some people than cutting out their weekly pamper sessions,” she said.
“Now more than ever, it’s crucial to direct any lifestyle savings to a high interest savings account. Savings rates have increased significantly over the past two years and savers are getting much more bang for their buck.”