Recent research by eToro, a trading and investing platform, has revealed a significant shift in the priorities of Australians for 2024.
A remarkable 42% of participants in a survey have placed financial resolutions such as saving, budgeting and investing at the top of their list, outstripping health and wellbeing at 39% and fitness at 33%.
This marks a substantial 11 percentage point increase from 2023, where only 31% had set financial goals.
The survey, conducted by global market research firm Appinio between December 8 and 13, involved 1,000 Australian respondents, equally divided between men and women, with an average age of 40.4.
Higher cost of living
The findings underscore a growing concern among Australians regarding their financial security, driven by the current economic climate.
Despite the heightened focus on financial resolutions, only 56% of those who set such goals in 2023 reported achieving them, the lowest success rate among all resolution categories.
However, 37% of respondents who made financial resolutions managed to maintain them for six months or more, the longest duration compared to other categories.
A considerable 78% of participants who did not meet their financial goals attributed this failure to the rising cost of living.
Less disposable income
Furthermore, 65% cited overwhelming expenses and 50% indicated that inflation was diminishing their disposable income.
"As the cost of living continued to climb in Australia over the last year, consumers really prioritised immediate financial pressures over longer-term investments,” eToro APAC chief executive officer Robert Francis said.
“For many, contributing to pensions and superannuation, or building a substantial investment portfolio, seems to have been seen as less of a priority compared to managing day-to-day expenses.”
Opportunities on the horizon
Despite the challenges of personal debt and high supermarket prices, there is an evident increase in proactive financial planning and resilience among Australians, he noted.
The survey results come at a time when the Australian Securities Exchange (ASX) has shown early gains of nearly 4% this month, fuelled by positive global inflation data.
“This evolving market landscape presents a promising opportunity for Aussies to align their new financial goals with the expected market conditions in the coming year,” Francis added.