As the cost of living rises (did anyone else get a much higher power bill recently?) a new study has found that most Australians won’t give up little luxuries, including overseas holidays.
In a poll of over 1,000 adult Aussies, three in four (74 per cent) respondents – equal to 15 million people – said they would cling to their comforts regardless of their financial situation.
When asked which luxuries they have held on to “despite the cost of living crisis”, only one in four (26 per cent) said they had “given up all luxuries”.
Conducted by Finder.com.au, the research shows Aussies are least likely to give up on entertainment, with one in five (20 per cent) refusing to go without “sports, concerts movies”, followed by “regularly eating out at restaurants” and barista takeaway coffee (both 18 per cent).
Travel tops despite cost
The fourth most held-onto luxury are overseas holidays, which one in seven (15 per cent) respondents said they refused to give up, followed by “beauty products/services” (14 per cent), “driving or taking Ubers/cabs instead of public transport or walking” (11 per cent), gym membership (10 per cent), and designer clothing (nine per cent).
Given the relative costs of these luxuries – with a trip abroad likely to cost way more than anything else on the list – the results certainly speak to the pulling power of travel.
Meanwhile, one in six (17 per cent) respondents admitted to not giving up any comforts.
“On one hand, a quarter of people are forgoing non-essentials just to make ends meet,” Finder shopping expert Chris Jager says.
“On the other, many aren’t ready to let go of certain things that provide them joy.”
“The data points to a widening gap in Australia between the haves and the have-nots – some are being forced to take drastic action while others are unaffected.”
When it comes to demographics, Gen Z-ers (86 per cent) are the most reluctant age group to forgo discretionary spending, followed by millennials (76 per cent), while men (21 per cent) are more likely than women (13 per cent) to stop splashing out
Saving/spending tips
Whilst it’s important for people to still enjoy their comforts, Jager warned against “making a habit” out of needless spending.
“These purchases can add up and cost hundreds or even thousands over the course of a year if you’re not careful,” he remarked.
“Look for ways to enjoy little treats while saving money – there are cashback apps that you can use to save money on movies, or loyalty programs that give you points on your purchases.
“Creating a budget and tracking expenses is key to staying accountable and aware of where your money is going.”
In May, a major CBA report showed that Australian consumers were throwing their budgets out the window in order to travel, despite showing that cost-of-living pressures had been steadily rising since late 2022.
Earlier this year, a Tripadvisor study revealed that Aussies allocated one in five discretionary dollars (19 per cent) to holidays, giving leisure travel the largest share of consumers’ annual budgets (tied with eating out).
