According to a new study, when it comes to shopping around to save money, it appears we are a nation of misguided misers. And that we are missing out on $7.4bn in savings.
Heritage Bank recently commissioned the University of Technology Sydney to look at Australian’s spending habits
According to the UTS report, Australians’ Switching Behaviour in Banking and Essential Services, 76 per cent of people are looking to limit their spending and hunt out the best deals. However, it showed we’re putting our energy into saving in the wrong places.
We’re missing out on an estimated $7.4 billion a year by focusing on minor purchases, such as our weekly shop, rather than major life purchases, such as a home loan.
It seems that Aussies crave the instant gratification we get from saving a few dollars shopping around for food and fashion, but we’re ignoring the potential to save thousands by doing the same on major purchases.
The study found that there was a trend toward Aussies wanting to be savvier with their money.
But it was interesting to see that those who consider themselves ‘tightwads’, who are typically very rational with their spending, tended to look for savings on the things they connect with emotionally, like clothing and travel.
Almost a third of Australians think switching home loans is too much trouble, making it the primary barrier to finding the best deal. A further 28 per cent considered the cost of switching not worth the time and effort.
The reality was that savvy switchers who did take the plunge and switched their home loan provider reaped the benefits, potentially saving up to $2,800 per year.
If you would like to save around $2,800 a year, please contact your Chan & Naylor broker.
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