After 11 cash rate increases and with annual inflation remaining above 7%, Australians have been forced to tighten household budgets, identifying non essential spending they can eliminate.

Digital marketplace OneFlare has revealed spending on aesthetic services (cosmetic skin treatments) are being frequently sacrificed, with pet grooming, home interior painting and car detailing all seeing substantial cutbacks compared to last year.

Spend on home cleaning is down 20% from 2022, car grooming down 28%, and 31% spend less on home interior painting.

Pet owners are also deprioritising their animals' appearance, with reduced spending on grooming for both dogs (down 16%) and cats (down 28%).

This backs up retail trade figures released on Friday, which revealed consumers are responding to tough economic conditions by spending less back on discretionary goods.

Other data suggests that cost of living pressures are also seeing many Aussies spending less on food.

NAB's retail sales index also showed an annual contraction in takeaway food spending and relatively strong growth in grocery spending, which Chief Economist Alan Oster suggested could be explained by consumers 'substituting' eating out with home cooking.

That said, while grooming is first on the chopping block, overall health is still a priority spending area, according to OneFlare CEO Tim Fung.

"[There is] continuing strong demand for personal trainers, naturopaths, acupuncture, and physiotherapists,” Mr Fung said.

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Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

Rates
Features
Conditions
Other
Provider
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance

High Interest Savings Account (< $250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
More details
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Saver Account (<$250k)

    More details
    4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
    • No withdrawal notice periods or interest rate penalties
    • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace

    Savings Account (Amounts < $250k)

    • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
    • No withdrawal notice periods or interest rate penalties
    • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
    More details
    000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    *Rate varies on savings amount
    • Deposit $500 per month to get bonus interest
    • 5.50% p.a. available on total savings up to $100k.
    • 5.00% p.a. applies to savings between $100k-250K.
    • Tiered bonus rates apply. (TMDs at ubank.com.au)
    *Rate varies on savings amount

    Save Account (<$100,000)

    • Deposit $500 per month to get bonus interest
    • 5.50% p.a. available on total savings up to $100k.
    • 5.00% p.a. applies to savings between $100k-250K.
    • Tiered bonus rates apply. (TMDs at ubank.com.au)
    More details
    Important Information and Comparison Rate Warning

    All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of July 27, 2024. View disclaimer.

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