Saving tips: Four money mindsets revealed as Aussies reset their finances for 2022

So which one are you?

The frugal dollar-stretcher?

The motivated, goal-driven saver?

Maybe the impulse spender?

Or an habitual saver?

Whichever money mindset applies to you, new data from NAB shows there’s a good chance you’re on the same page as the 60 per cent of Australians who are focused on improving their finances in 2022.

The lender’s survey of 1000 people highlighted how Australians wanted more control of their money in the new year, with 23 per cent of people struggling to control spending, almost half of all Aussies are worried about the future of their finances, and three in five wishing they could save more than they actually do.

NAB Group Executive Personal Banking Rachel Slade said January could often be a financial hangover as people get out of holiday mode and assess the full impact of Christmas spending while, for others, reviewing their finances is something they do at the start of every year.

Regardless: “NAB’s money mindsets are a great way to identify how you think, feel and behave about spending and saving.”

What’s more, the bank says it has identified four broad money mindsets they say can help people identify where they need to improve.

NAB said the four key money mindsets are based on extensive research and customer interviews as thousands plan to use the new year to reset their finances and goals.

The mindset are:

• Dollar-stretchers who watch how they spend every dollar and often struggle to make ends meet in the final days of a pay cycle.
• Goal-driven savers who focus hard on achieving savings goals, but whose habits can change once they reach a milestone.
• Impulse spenders who live for the moment, love having different experiences and don’t like thinking long-term.
• Habitual savers who love saving money and get satisfaction, safety and security from watching it grow

NAB customer and Melbourne HR professional Jenny Le, 29, said she identified with different money mindsets at different points in her life.

“I used to be an impulse spender. After an achievement, like getting a new job, I’d buy myself a treat, like some shoes or a bag on the credit card, and take that out of my savings,” Ms Le said.

“My partner and I bought a house this year. Before we got a mortgage, I was more of a habitual saver. I’d put savings away for the sake of it without really having a goal. But since getting a mortgage, having to pay that and put money into the offset, I haven’t really been able to save for myself.”

Ms Le said she’s now more of a goal-driven saver combined with a dollar stretcher.

“I get paid fortnightly and put away money for bills, mortgage repayments and the offset into different accounts straight away,” she said.

“I’m left with very little spending money for the rest of the fortnight.”

Ms Le, who has a credit card and everyday transaction account with NAB, said she and her partner recently did a budget together.

“It was quite confronting when you add up all those expenses together, but it helped us realise that we can’t be putting everything on the credit card,” she said.

Tips and tricks for dollar-stretchers

• Know there’s assistance available to access funds in an emergency.

• Consider consolidating debts at a lower interest rate and paying the smallest off first.

• Build an emergency fund as soon as you’re able to. Regular, small amounts are key.

Tips and tricks for goal-driven savers

• Set a savings plan, and a savings goal.

• Separate the savings goal account from other funds like an emergency fund and everyday accounts using fee-free accounts.

• Pay part of your salary straight into your savings account or set up an auto transfer so relying on what’s left at the end of a pay cycle.

Tips and tricks for impulse spenders

• Avoid any unnecessary purchases in the first week of a monthly pay cycle so you aren’t short at the other end.

• Put barriers to spending in place – hide your savings from your account list, name accounts and savings goals so you’re less likely to dip into that money and leave items in your online shopping cart for one, three or five days to see if you really want/need them.

• Keep receipts safe and look for generous returns policies.

Tips and tricks for habitual savers

• Plan the month ahead so you don’t over-estimate your ability to save. Remember unexpected expenses sometimes occur and identify large one-off purchases where possible.

• Look at ways to maximise savings such as term deposits or ensuring you’re using an offset account effectively if you have a mortgage.

• Plan your next step, such as making an investment, and set a goal that may trigger it.