Since the global financial crisis in 2008, Aussies have stopped frittering their cash away in favour of saving their pennies instead.
Australian households saved $800 billion in the 12 months to June 2013. That equals about 10 per cent of after-tax incomes or about $3500 for each of us, including children.
The story was very different a decade ago with Aussies saving an average of zero dollars per year.
It appears this motivation to save has translated into property investment. Young people especially are becoming more aware of the benefits of buying property for investment purposes and are making the sacrifices required to fund their investments.
According to a new survey, 74.7 per cent of Gen Y respondents said setting themselves up financially was their key motivation.
Respondents said they were cutting back on ‘day to day spending’ such as eating out less, limiting take away food, missing out on a holiday, delaying a vehicle purchase and last but not least, cutting back on alcohol related expenses in order to put themselves in a position to invest.