YOLO, or you only live once, was becoming more common as the younger generation opted for impulse purchasing rather than saving.
The Suncorp report said the stereotype that millennials spent their money on trivial purchases like avocado on toast now had some data behind it.
Its annual spending and savings report revealed that Millenials, who make up 20 per cent of Australians, saved nothing from their pay.
The report found that while the average person saved $377 a week (or $19,604 a year), many Australians found themselves tied to their Netflix subscription and monthly internet bill and would prefer not to save rather than give them up.
Half of those surveyed agreed they could probably live without food delivery services like UberEats, going to the movies or avocado on toast to reach their savings goals. The other half said they wouldn’t.
Suncorp executive general manager of home lending Bruce Rush said impulse spending could be the defining habit that led to younger people’s long-term financial dissatisfaction.
“Australians keen to build up their savings should resist the urge to reduce stress with a quick online purchase or by putting their card down on the bar tab if that’s something they don’t usually budget for,” he said.
Suncorp cited the case of Westlake residents Emily and Jack Fitzgerald who recently bought their first home after renting together for two years.
“We spent one year working as English teachers in Vietnam which taught us pretty quickly how to go without some of the luxuries in life so we could travel and afford to live,” Emily said.
Rush said people needed to be reminded that sticking to a steady budget would help make a long-term savings goal more achievable.
“Whatever your savings goal is, our research shows that having a stable spending plan will make you feel more in control and more capable of reaching your goals.” Mr Rush said.
“Homeowners who are successful in getting on the property market generally have built up a five per cent deposit with strong and sustained savings habits, but of course the closer they can get to a 20 per cent deposit, the less Lenders Mortgage Insurance (LMI) they will need to pay.”
Suncorp said learning to live on 80 per cent and saving 20 per cent was a good strategy.
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