More than half of Aussies have unused subscriptions and other regular outgoings they have forgotten about, costing them $1261 a year, finds new research by ING Australia.
People are now planning to curb their spending; top-non-essential outgoings they will slash from their budget include entertainment subscriptions (45%), gym memberships (15%), and fitness apps (12%) – making cost savings that could amount to over $8 billion across the country.
Amonst those planning to cut down on entertainment and gaming subscriptions, 63% make up Gen Z, highter than any other generational group.
“It’s positive to see that many financially savvy Aussies are looking to cleanse their bank accounts this year,” said Matt Bowen, Head of Daily Banking at ING Australia.
Research found that a quarter (25%) of Aussies who have scheduled outgoing monthly payments, such as subscription services and utility bills, admit they’re not across them all, and two in five (39%) say they have scheduled payments that they have forgotten about, or for services they don’t use.
The need for a new year spending check is timely with Aussies taking nine months on average to cancel scheduled payments for unused services – a delay which is costing them $964 on average.
It was found that 28% of Aussies admit they pay for services they don’t even use, just for their family and friends. With Netflix announcing a crackdown on password sharing, now is probably the time to rid yourself of those accounts.
When it comes to money management, more than half (54%) use their everyday accounts to pay for those all-important outgoing costs and bills whilst over two in five (43%) use their savings accounts.
“These findings show that small changes like cancelling an unused subscription or monitoring for nonessential outgoings, can make big savings when Aussies need it most. Creating reminders on your phone or setting up bank account notifications are quick wins for keeping on top of your spending and saving those all-important dollars for the year ahead,” Bowen noted.
