Aussies cutting back on beloved treats like takeout, travel due to mounting cost of living pressure

As mounting cost of living pressures put more strain on budgets, cash-strapped Aussies are cutting back on little luxuries just to save a bit more.

Cash-strapped Aussies will ditch little luxuries like takeout and coffee, and even travel in a bid to save an extra bit over 2025 as the cost of living crisis continues to bite.

New research from from Compare the Market shows 3 in 4 Australians - or 77 per cent - admitted they are trying to reduce spending in the new year to try and boost their savings.

Cutting back on takeaway meals was the top choice among those surveyed, while clothing, holidays, streaming services and going out for coffees were also listed as being on the chopping block.

Aussies are looking to give up takeaway as they look to save in the new year. Picture: NewsWire / Damian Shaw

Compare the Market general manager Chris Ford said struggling households were looking for new ways to save over 2025. Picture: NewsWire / Nicholas Eagar

Compare the Market general manager Chris Ford households are looking to find new ways to cut back and boost their savings.

“The trend we’re seeing is that Australians plan on saying no to what may be seen as life’s little luxuries to boost their savings,” Mr Ford said.

Mr Ford explained there could be an additional reason why Aussies are choosing to cut back on these items.

“We see a lot of people vow to live a healthier lifestyle in the New Year, so it’s not all that surprising to see so many Australians (are) saying they’ll cut back on takeaway meals.”

“Similarly, if you’re looking to feed a family or treat yourself during the work week, takeaway meals don’t always come cheap.

“Depending on what you get and whether you’re purchasing through a food delivery app, it doesn’t take long for the costs to add up.

“It makes sense that Australians would choose to save by ditching a sneaky burger or pizza over other expenses.”

Younger Aussies said they were far more likely to cut takeaway meals - with 34.2 per cent of millennials looking to cut back compared with 14.4 per cent of Boomers.

“What was surprising was the discrepancies between the different generations,” Mr Ford said.

“More than two times the number of Millennials or Gen Z say they’ll cut back on takeaway meals compared to Baby Boomers.

“It could be that younger generations traditionally spend more on eating out and are conscious that this is chewing into their savings.”

Adding to the health narrative is Aussies will also be cutting on alcohol or vaping/smoking in 2025.

Aussies are also ditching travel due to the rising costs of airfares. Picture: NewsWire / Nikki Short

Travel ranked among the top three 2025 spending cutbacks, with 7.2 per cent of Australians surveyed planning to abstain from holidays in the new year to save money.

“We know the price of airfares have skyrocketed in the post-Covid world and travel is one of the top things that Australians avoid in an attempt to boost their savings,” Mr Ford said.

“Even domestic travel costs have spiked in recent times, particularly with those airlines that service regional areas shutting up shop.

Mr Ford said Australians could look to save in other ways instead of completely cutting out things they enjoy.

“For example, you could use the downtime between Christmas and the New Year to assess whether there are any savings available on your current energy plan or insurance costs. You may be paying too much without realising it, which could leave you with more money in 2025 to enjoy the things you love.”