Give frivolous spending the boot
CONSUMERS frittering away their money on coffee and shoes are being urged to rein in loose spending.
Many coffee addicts cannot function without a daily 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. 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. 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.
Office administrator Maddison Tweedie, 26, said she loves to keep her wardrobe filled with new additions and can easily spend a few hundred dollars on a pair of shoes.
“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. 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.” 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. “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 their living rooms so they can monitor their progress along the way and keep on track.