Skyrocketing cost of living forces Aussies to cut costs everywhere, NAB research shows

New research shows that Aussies are cutting costs on everyday items as well as pushing back buying bigger necessary items.

One-in-four Australians have recently cut their spending on takeaway and entertainment as the cost of living bites, new research has found.

People right across the country are looking to make their money go further by cutting back on non-essential spending as well as bigger ticket items, the National Australia Bank research showed, including one-in-two switching to cheaper brands or actively looking for cheaper products.

About 28 per cent of Aussies are cutting back or cancelling subscriptions such as newspapers, magazines or apps and a quarter have reduced or stopped streaming services or got rid of gym memberships.

Aussies are looking at way to cut costs as prices skyrocket. Picture: Getty Images

Meanwhile, 22 per cent have cancelled or cut back on outsourcing home services like lawn mowing and house cleaning and one-in-five can no longer afford activities such as sport, dancing, or hobbies.

NAB group executive of personal banking Rachel Slade said the survey showed Australians are being creative and flexible when it comes to managing their money.

“We can see the impact of inflation starting to show with prices moving up and we know many Australian households are already feeling cost-of-living pressures. This research reflects the conversations I’ve been having with our customers – people are finding ways to make short term changes and get on top of their money.” she said.

“There are options available to customers to help them stay in control of their money, whether that be creating a budget, bucketing funds, immediately transferring savings into a separate account to reduce the temptation to spend or making accounts invisible.’

Aussies are giving up their takeaway coffee habit. Picture: iStock

Australians are also being forced to change daily habits to cut back on spending too, the survey showed.

Around 40 per cent cut back or stopped buying micro treats such as coffees, snacks, and lunch, while one-in-three cancelled, delayed or made more modest travel plans.

But Aussies are also putting off bigger purchases with three-in-10 cancelling or delaying a buying a TV, fridge or washing machine.

Meanwhile, 43 per cent have started a budget to keep better track of their spending.

For many Australians, a home loan repayment is a significant monthly cost, the NAB said, and suggested homeowners could consider an offset to pay off the loan faster or fixing the interest on all or part of your loan can give a period of repayment certainty.

Originally published as Skyrocketing cost of living forces Aussies to cut costs everywhere, NAB research shows