Save
Does a bad mood stop you from saving?
A negative mindset is just one of the reasons Australians are struggling to save, with “buy now, pay later” services and social media also blamed for their impact on savings goals, a new report has indicated.
Does a bad mood stop you from saving?
A negative mindset is just one of the reasons Australians are struggling to save, with “buy now, pay later” services and social media also blamed for their impact on savings goals, a new report has indicated.
In a new study released by MyState Bank, six out of 10 Australians stated that a poor mood is having a negative impact on their savings habits.
Survey results showed that an individual’s emotional state, which is impacted by factors such as having a bad day or simply being bored, has a negative or very negative impact on the majority of Australians’ bank balances.
As a result, the avoidance of emotional decision-making will help Australians in a low wage environment that is making saving harder, according to MyState Bank’s managing director and CEO, Melos Sulicich.
“Aussies are feeling the pinch at the moment – wage growth is stagnant, savings interest rates are at all-time lows, and the cost of living continues to rise,” said Mr Sulicich.
What is stopping Australians from saving
The research further highlighted that more than one in four Australians don’t have a budget in place to track expenses, while almost one in three indicated that they are saving less now than they did two years ago or have never managed to save any money.
Buy now, pay later services, including Afterpay, has topped the list for Australia’s biggest savings roadblock, according to the survey, with two-thirds of individuals surveyed admitting these products have a negative or very negative influence on their ability to resist impulse purchases.
More than one in five Gen Xers thought their ability to save was very negatively impacted by buy now, pay later services, a figure closely followed by Gen Zers.
Mr Sulicich commented on the phenomenon of consumers buying into the buy now, pay later effect, stating that individuals now “don’t need to wait to buy something when they have instant access to credit”.
“The ease at which anyone can sign up to these buy now, pay later services is concerning, and it is easy to lose track of your spending. If you are cash-strapped, the service can help, but it can compromise your long-term goals,” said Mr Sulicich.
MyState Bank’s findings showed that 57 per cent of Australians are negatively influenced by friends or co-workers, while 61 per cent also think that social media influencers are having a negative impact on their savings.
“More people have access to social media platforms than ever before and as a result, are exposed to influencers, retailers and friends showing off clothes, holidays and gadgets. Social media users in Australia are some of the most active in the world, with recent data showing there are now 15 million active Australians on Facebook and 9 million on Instagram,” Mr Sulicich flagged.
“As humans, we can’t seem to help but compare ourselves to what we see on social media and may feel like we have to spend more to appear to be keeping up with the Joneses,” he said.
RELATED ARTICLES
About the author
About the author
Savings account
Protecting your savings from inflation in Australia
Inflation is an economic phenomenon that erodes the purchasing power of money over time, directly impacting the real value of your savings. In Australia, as in many parts of the world, periodic rises ...Read more
Savings account
Maximising your savings effortlessly: The power of automation in Australia
In the fast-paced world we live in, managing finances can often become an overlooked aspect of our daily routines. However, the advent of technology has introduced a seamless solution to this ...Read more
Savings account
Maximising your savings account: What you need to know
Saving money is a fundamental aspect of financial security and wellbeing. Read more
Savings account
Are ‘nudges’ the secret ingredient to financial wellness?
Are better financial habits a simple reminder away? Read more
Savings account
Afterpay launches Money app, bank accounts and retroactive BNPL
Afterpay is upgrading its app-based arsenal. Read more
Savings account
2020 saw the fastest increase in bank deposits since the GFC
Bank deposits of Australian households increased by more than 12 per cent last year. Read more
Savings account
Australians are putting savings goals ahead of holiday plans
While travel restrictions are soon set to ease, Australians are still putting their savings goals first. Read more
Savings account
More than half of Aussie Millennials don’t have a savings plan
Money is remaining a taboo subject for Millennials, which is leading to poor saving habits, a big four bank has revealed. Read more
Savings account
Protecting your savings from inflation in Australia
Inflation is an economic phenomenon that erodes the purchasing power of money over time, directly impacting the real value of your savings. In Australia, as in many parts of the world, periodic rises ...Read more
Savings account
Maximising your savings effortlessly: The power of automation in Australia
In the fast-paced world we live in, managing finances can often become an overlooked aspect of our daily routines. However, the advent of technology has introduced a seamless solution to this ...Read more
Savings account
Maximising your savings account: What you need to know
Saving money is a fundamental aspect of financial security and wellbeing. Read more
Savings account
Are ‘nudges’ the secret ingredient to financial wellness?
Are better financial habits a simple reminder away? Read more
Savings account
Afterpay launches Money app, bank accounts and retroactive BNPL
Afterpay is upgrading its app-based arsenal. Read more
Savings account
2020 saw the fastest increase in bank deposits since the GFC
Bank deposits of Australian households increased by more than 12 per cent last year. Read more
Savings account
Australians are putting savings goals ahead of holiday plans
While travel restrictions are soon set to ease, Australians are still putting their savings goals first. Read more
Savings account
More than half of Aussie Millennials don’t have a savings plan
Money is remaining a taboo subject for Millennials, which is leading to poor saving habits, a big four bank has revealed. Read more
More articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Broker Daily
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Centre
- Investor Daily
- Lawyers Weekly
- Money Management
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- World of Aviation
EVENTS AND SUMMITS
- ACE25 The Accounting Conference and Exhibition
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian AI Awards
- Australian Aviation Awards
- Australian Aviation Summit
- Australian Broking Awards
- Australian Cyber Awards
- Australian Cyber Summit
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Law Forum
- Australian Space Awards
- Australian Space Summit
- Australian Wealth Management Awards
- Australian Wealth Management Summit
- Better Business Awards
- Better Business Summit
- Broker Innovation Awards
- Broker Innovation Summit
- Budget Summit
- Commerical Finance Awards
- Corporate Counsel Summit
- Defence & National Security Workforce Awards
- Fund Manager of the Year Awards
- ifa Excellence Awards
- Lawyers Weekly 30 Under 30 Awards
- New Broker Academy
- Partner of the Year Awards
- Partner Summit
- REB Awards
- Rising Star Awards
- SME Bootcamp
- SMSF Technical Strategy Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Finance Summit
- Women in Law Awards
- Women in Law Forum
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.