Splash or Cash: Are you a spender or saver?

April 21, 2022

Are you paid weekly, fortnightly or monthly? New research indicates that how often you’re paid has a pretty big bearing on whether you’re a saver or a spender.

The research, conducted by small business platform Xero, shows that Aussies who receive their salaries weekly are more likely to splash their hard-earned cash than those who are paid monthly due to a term they’ve dubbed ‘payphoria’.

This, in turn, can play a big part when it comes to your ability to save for a home loan deposit.

What the research found

The research analysed the payday habits of 1,000 Australians and found that a whopping 63% of workers claim to have financial difficulties before payday and rely on short-term fixes for support.

In fact, one in three workers have less than $100 in the lead up to payday, resulting in them foregoing luxuries such as coffee and eating out, or even delaying household bills.

“It’s not surprising that when payday does come around, Aussies are experiencing rushes of ‘payphoria’ and are wanting to reward their hard work by spending up,” explains Xero small business advocate Angus Capel.

Hence, the research suggests that the more paydays we experience, the more of these ‘payphoria’ spending sprees we reward ourselves with.

Characteristics of Savers vs Spenders

The research from Xero found 70% of Australians identified as savers (despite much of the research suggesting otherwise!). They;

  • Are more likely to be paid monthly
  • More likely to budget and keep track of expenses and spending habits (87%)
  • Feel worried if they don’t have enough savings (95%)
  • More likely to be married with no children and live in metro areas
  • Focus on financial management goals such as having an emergency fund and paying off mortgages.
On the other hand, 30% of Australians identified as spenders. It was found they;
  • Are more likely to be paid weekly
  • Don’t want to give up luxuries that come with saving (77%)
  • Believe lifestyle is more important than saving for the future (56%)
  • Are more likely to use their income to pay off debts like credit card bills
  • Are more likely to have children under the age of 18 and live in regional areas.
So which are you; a spender or saver?

We all know (deep down) that if we can keep our ‘payphoria’ tendencies in check and hold on to our cash, even a little each month, we’ll typically be better off in the long-term. A healthy savings account means access to emergency cash, a house deposit and / or a more comfortable retirement.

Daran Thomson, Managing Director of Hallmark Consulting reminds us that building wealth long-term is about having a plan, and sticking to it.

“Ultimately, we all need to balance our financial needs today with those of tomorrow. Rather than focusing on your paycheck and those small wins, look at building a holistic plan that’ll work to support your long-term goals and your present-day lifestyle,” he says.

“Of course, expert advice is going to be invaluable. That’s exactly why I founded Hallmark Consulting; to allow everyday Australians the opportunity to work directly with an established network of financial experts who will challenge your thinking, open doors and present new opportunities,” he says.

If you think you’re leaning more towards spender than you are saver (come on now, be honest!), or you’d like to build a holistic wealth plan, then get in touch with the Hallmark Consulting team on 1300 135 295. Together, we can build your wealth!