
In a world of constant consumer temptations, cutting back on small luxuries can often be overlooked, even though these indulgences can quietly chip away at your budget. From takeaway coffees to streaming services, many Australians are beginning to rethink their spending habits in an effort to regain control over their finances. A recent survey highlights how more individuals are setting their sights on cutting back on these “little luxuries” in favour of more meaningful financial goals. In this article, we explore the growing trend of prioritising financial health, how Australians are scaling back on everyday indulgences, and the simple strategies that can lead to a stronger, more secure financial future.
Scaling Back on Costly Little Luxuries
The temptation to indulge in takeaway coffee, snacks, or spontaneous online buys is universal. These “little but expensive luxuries” often go unnoticed in the grand scheme of consumer spending. However, they can significantly impact your budget when viewed collectively.
A Compare the Market survey from October 2024 claims many Australians have set their New Year’s resolution to reduce spending on these indulgences. The survey, which polled 1,006 people, highlights a growing awareness of the need to prioritise financial health over impulse buying.
The idea of giving up small luxuries—sometimes referred to as the “sacrifice play”—isn’t about eliminating joy but redirecting resources towards more meaningful goals. Saving for a home deposit, paying off debt, or building an emergency fund becomes much more achievable when these little expenses are curbed.
Cutting Back on Impulse Buys
Impulse buying is one of the biggest culprits in undermining financial goals. Whether it’s grabbing a takeaway meal during a busy workday or purchasing an item online during a flash sale, these small, unplanned expenses can spiral into a habit. In 2025, as consumer spending habits evolve, Australians are recognising the need to avoid these seemingly trivial outlays.
The Compare the Market (CTM) survey revealed that 77 per cent of respondents planned to cut back on “treats” to cope with the cost-of-living crisis. The survey also identified the five most common small indulgences that Australians are sacrificing to save more effectively, with some distinctions between baby boomers and younger generations.
Everyday Luxuries Australians Are Cutting Back On
Below are some common treats marked in the Compare the Market survey that many people in Australia want to stop spending on and possibly keep the money.
Fast Food and Takeaway Meals
The convenience of fast food and takeaway meals is undeniable, especially for busy households. However, with individual meals costing $10 to $20 per order, regular consumption can strain finances. The CTM survey put takeaway food at No1 for spending cutbacks, at 24.5 per cent overall. However, when it came to demographics, 34.2 per cent of millennial respondents were willing to make that sacrifice compared to 14.4 per cent of baby boomers.
CTM General Manager Chris Ford said takeaways will not be a good idea to spend on if you are already raising a family, even more if you order via food-delivery apps, which have their extra processing fees.
Clothing
Clothing is primarily labelled in many circles as one of the three Basic Needs (the others being food and shelter) but it is No2 on the CTM survey at 9.2 per cent overall, indicating a growing need to keep the current wardrobe. When taken at demographic level, 17.6 per cent of Gen Z respondents were determined to hold off buying new clothes – against 6.3 per cent of millennials.
Travel
Travelling emerged No3 in the survey at 7.2 per cent. CTM surveyors said the cutback on both domestic and international travel was noteworthy given the post COVID-19 climate, especially when travel services tended to cost more during the holiday periods. Baby boomers were found to skip travelling altogether to save more money.
Streaming Services
Streaming platforms ranked No4 on the cutbacks list at 5.5 per cent. While $10 to $15 a month per platform might not seem significant, subscribing to multiple services can quickly add up. The team at Tom’s Guide reported changes to streaming platforms in 2025 that included even the basic packages being programmed with ads per video. For example, Netflix’s Standard package with ads costs $7.99 a month per household – but the ad-free Standard package is at $18.99 a month. And you also incur extra charges if you share accounts outside the household, at $7.99 per additional member.
Takeaway Drinks/Coffee
Many Australians tend to buy drinks, such as juice or coffee, from a takeaway place, but this ranked at No5 on the CTM list, with 5.5 per cent of respondents overall wanting to hold back on the next purchases. This may be prudent as some observers claim that a takeaway flat white or cappuccino, averaging $4.50 to $5.00, can add up to over $1,200 annually if purchased daily.
Simple Strategies to Cut Back on Small Treats
Breaking the habit of spending on small treats requires a conscious effort. The following are a few strategies to help.
Create a Budget
Take time to list your current income stream and compare it against the present expenses; this will give you ideas on where cutbacks are in order. Some careful maneouvreing on the budget, however, is needed – a CTM December 2024 study tagged that a household’s average weekly grocery bill coming into 2025 stood at $213.64, up from January 2024’s $191.66, with the annual tally up by $1,142.96.
Track Spending
Use apps or a simple spreadsheet to monitor your purchases and identify patterns of unnecessary spending.
Set Financial Goals
If you have mapped out your income and which expenses to cut, some financial goals to set can work, especially when those expenses include some debts you need to wipe clean.
Embrace DIY
From brewing coffee to preparing meals, doing things yourself can save money and bring satisfaction.
Delay Gratification
Before making a purchase, pause and ask if it’s truly necessary or if you can wait a day or two.
Shifting Priorities for a Stronger Financial Future
The current economic environment has forced many Australians to rethink their spending habits. The Compare the Market survey highlights a broader shift towards mindful consumerism. By sacrificing small luxuries, individuals can address immediate cost-of-living pressures while building a more secure financial future.
For businesses, this trend serves as a reminder of the importance of offering value-driven products and services that align with changing consumer priorities. Companies focusing on affordability, sustainability, and essential services are likely to thrive in this evolving landscape.
Giving up small treats such as snacks or barista coffee may seem like a sacrifice, but it’s a step toward greater financial freedom and resilience. In recognising the impact of impulse buying and making conscious choices, Australians can take control of their finances this year.
In the end, it’s about finding joy in the bigger picture rather than fleeting indulgences.
DISCLAIMER: This article is for informational purposes only and is not meant to replace official finance advice. The data presented is based on the latest information available at the time of writing. 2 Ezi is not related to any consumer comparisons service. Please consult a financial advisor.