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So why? What’s causing this change? The Reserve Bank seems to think that the GFC inspired our “saving is the new black” mentality. Many retailers, no doubt, believe the explosion of online shopping has a lot to do with it. Then there’s the stronger currency, which has enabled us to buy more for less. And then there’s what Philip Lowe, Assistant Governor (Economic) referred to in a as the “pervasive price declines” by local retailers. Over the past twelve months this has seen price index for clothing fall by 6%, major household appliances fall by 4% and the price index for audio, visual and computing equipment fall by 18%. Pretty much everything except food has fallen which is great news because it means that the RBA is ,Jimmy Choo Snake Print Gilbert Pumps Shoes Grey Online.

According to government statistics, Aussies are saving their money like never before. Well, not quite never before, but certainly more than we have in the last few decades. We’re paying off our mortgages instead of refinancing, and we’re spending less than we earn. No wonder the retailers are getting edgy. In fact their indicates that 50% of shoppers plan to spend less this year.

Okay where was I? Ah savings. Yep, we’re getting pretty damn good at it apparently. We’re now saving around 10% of our income … up from a bit below 0% five years ago. That’s a definite improvement. And in fact for every dollar of extra income that we earn (as in payrises, etc) we’re saving 35%. Again up from zero. Good stuff.

Ah, it’s that good old Economics 101 concept of supply and demand. Otherwise known as the discounting benefit of playing hard to get (financially speaking)!

Of course, online shopping is getting a fair whack of the blame for lower spending and sluggish department store sales figures and as a side note, the Productivity Commission inquiry into the future of Australia’ retail sector is now open for submissions and the Assistant Treasurer, Bill Shorten, is looking for your comments. Or in his words: “I strongly encourage brick and mortar and online retailers, consumer groups, unions, shoppers, suppliers and other experts and stakeholders to make submissions to the inquiry.” So if it’s something that interests you, then .

Which is a good thing, I reckon. Because seriously, how much stuff can people need?

So again what’s causing this change? Are you saving almost by default because things are costing less due to the wonders of online shopping and local discounting? Or are you saving on purpose courtesy of a GFC-inspired caution? Or of course, not saving at all? And if you are paying down that mortgage, paying off the credit card and stacking some money away for a rainy day, what are your tips for the rest of us?