Australians urged to rein in their discretionary spending

AUSTRALIANS are urged to watch their discretionary spending as money can be quickly frittered away.

CONSUMERS frittering away their money on coffee and shoes are being urged to rein in spending on items they don’t really need.

Many coffee addicts cannot function without their at least once-a-day caffeine hit while others will forgo a packed lunch and instead make a midday dash to grab some food on the run.

But these bite-sized spends are making their mark on our balance sheets, while trying to look good in the office is taking the issue to a whole new level.

Spending smallers amounts of cash is costing Australians a small fortune.

The new Choosi Workplace Report has revealed Australians spend the following:

- $31 per week on lunches.

- $40 per week on coffee.

- $687 per year on fashion including work clothes, shoes and accessories.

And women are dipping into their pockets more to look good — spending an average of $802 on fashion annually, while men are splashing just $561.

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Office administrator Maddison Tweedie, 26, said she loves to keep her wardrobe filled with new additions and she can easily spend a few hundred dollars just on a pair of shoes.

Maddison Tweedie monitors her spending on clothes but says if she really wants an item she will buy it.

“When I’m buying work clothes like a good pair of pants I prefer to spend a bit more on better quality that will last longer,’’ she said.

But Ms Tweedie admits “she tries to live in the moment” and not be too tight with her spending.

She has restraint, rarely using her credit card and she’s also stashing cash for an overseas holiday she plans to take later this year.

“There’s no point having $10,000 in your bank account at the end of the year if you are miserable,’’ Ms Tweedie said.

Australians are being urged to think twice before they spend up on credit cards.

Choosi spokeswoman Katrina Foster said consumers need to think more carefully about where they are splashing their cash as it can easily drain out of their pockets.

“Whether it’s clothes, coffee or lunches it’s important to adhere to a financial goal, whether it be saving up for a holiday or having something at the end of the tunnel,’’ she said.

“By reducing your coffee intake, for instance reducing it from two to one per day that can quickly add up.”

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Australians have embraced “tap and go” technology making spending quicker and easier than ever, but on the flip side this can pull on our purse strings.

Rising Tide Financial Services’ managing director Chris Browne said consumers need to differentiate between needs and wants to ensure they are not spending money unnecessarily.

“A lot of people categorise wants as needs,’’ he said.

Rising Tide Financial Services’ managing director Chris Browne said consumers need to understand the difference between wants and needs.

“So a need is a thing like school fees, or electricity, whereas wants are things like gym memberships, booze and gambling.”

He urges frivolous spenders to pen out a budget on paper and hang up these goals in your living room so you can monitor your progress along the way and keep on track.

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