Australians wasting money on drinking, smoking, gambling

AUSTRALIANS are frittering away their hard-earned cash on dining out and vices including drinking, smoking and gambling.

Australians are wasting billions of dollars a year on life’s luxuries.

AUSTRALIANS are frittering away their hard-earned cash on dining out and vices including drinking, smoking and gambling.

Keeping up with the latest fashion trends is also high up on the money-wasting list that is gobbling up consumers’ weekly earnings, new analysis by financial comparison website Mozo shows.

Restaurants, cafes, weekday lunches, weekend brunches and takeaway coffee are taking pulling on consumers’ purse strings and costing Aussies more than $34 billion per year.

Mozo spokeswoman Kirsty Lamont said Australians desire to spend up on life’s luxuries was resulting in weekly wages being whittled away by unnecessary spending.

Financial comparison website Mozo's spokeswoman Kirsty Lamont says Australians are wasting their money on luxuries they don’t need.

“Close to a third of our lifestyle is going into cafes and restaurants on expenses that would have been considered luxuries a couple of decades ago such as takeaway coffees, restaurant dinners and brunches,’’ Ms Lamont said.

“We are not saying cut out coffees and nice dinners altogether but you can certainly reign in those costs.”

Clothes and shoes is the nation’s biggest money waster — shoppers are spending more than $23.2 billion per year.

Australians spend $26.4 billion on cigarettes, gambling and drinks at the pub annually and an additional $11.4 billion on dining out.

Gambling, sports betting, poker machines and scratchies is chewing up $6.9 billion and keeping up with the latest mod-cons including fitbit, gopros, smartphones is costing $5.4 billion, the analysis showed.

Australians spend more than $14.5 billion on cigarettes annually.

Jessica O’Connell, 27, who works in public relations said she is often “time-poor” and spends at least more than $100 on buying meals and drinks per week.

“I’m always in trouble with my partner for online shopping, we do order food to the house when we don’t want to cook, but with working long hours you just want that easy meal,’’ she said.

“I’m not a big drinker so I don’t spend too much on alcohol but I buy lunches and coffees every day and do order takeaway food.”

And the nation’s credit card bill is far from shrinking — Reserve Bank of Australia data shows consumers who owe $51.7 billion on credit cards and more than $32.6 billion is accruing interest.

Consumer finance expert Lisa Montgomery said many Australians “needed to shift their priorities” on how they spend their cash.

Consumer finance expert Lisa Montgomery says Australians needed to better manage their finances.

“We have become incredibly time poor and we have incredible social pressures, when you look at social media photos it’s all about celebration and food and dining out, where you are going to drink and what you wear,’’ she said.

“There remains an issue with Australians balancing their financial priorities.”

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SOME OF AUSTRALIA’S TOP MONEY WASTERS — ANNUAL SPEND

1. Clothes and shoes $23.2 billion

2. Cigarettes $14.5 billion

3. Restaurant dinners $11.4 billion

4. Takeaway dinners $9.2 billion

5. Gambling/lotteries/betting $6.9 billion

6. Weekend brunches $6.7 billion

7. Buying lunch on weekdays $6.7 billion

8. Buying coffee $6.4 billion

9. Gadgets including fitbits, gopros, smartphones $5.4 billion

10. Alcohol at pubs or bars $5 billion

Source: Mozo

Originally published as Australians wasting money on drinking, smoking, gambling