Cost of Living: 5 Tips to Help You Save

Developing some healthy money habits and finding more ways to save could help ease the squeeze on your household finances.

1. Clear debt as a priority

Make it your priority to pay off any credit card debt as quickly as possible. Those holiday credit card purchases can linger well into the new year if we don’t get on top of it quickly. And with high interest rates accruing on unpaid balances, credit cards and other buy-now, pay-later credit (like Afterpay or Zip) are among the most expensive forms of credit on offer. 

To do:

• Review non-essential spending: Free up more of your budget to pay off your credit card debt. Non-essential spending covers the things we want but don’t actually need. Think non-essential household items, clothing, eating out and entertainment expenses.
• Delay larger spends on things like appliances or furniture until you’ve got the money to pay for them up front. 
• Decrease your credit limit: put the handbrake on credit card spending. As you pay down your credit balance, reduce the limit on your credit card.
• Consolidate debt: consider consolidating high-interest debt with a lower interest loan to reduce interest repayments. Consolidating debt simply means transferring your debt from higher-interest loans (like credit cards) into a single, lower-interest loan like a personal loan.

Find out more about debt consolidation

2. Get a home loan health check

With interest rates climbing, it’s the perfect time to get a home loan health check to make sure you’re getting the best value home loan for your circumstances. 

Depending on your financial situation and current loan details, refinancing your home loan could mean lower monthly repayments and significant interest savings over the life of your loan. 

Actions:

• Better off overall test: when comparing home loan options, work out whether you’ll be ‘better off overall’. As well as interest rates, be sure to weigh up other loan features that could help you save over the long term. Think mortgage offset accounts or lower fees and charges. 
• Reach out to a Lending Specialist: a lending expert can help you weigh up your options and find out if refinancing could help you save. 
• Get a free home loan health check: or find out more about your refinancing options. Book a call back to speak with one of our Lending Specialists at a time that works for you.

3. Use apps to compare and save

With sharp rises in energy and grocery costs as well as at the bowser, it can definitely pay to use smart apps and online resources to help you compare prices and save.

A common trap to fall into is thinking “saving a few dollars won’t really make a difference so what’s the point?” But because they are the everyday essentials we’re spending on most frequently, even small savings each time we fill up the tank or shop can make a real difference over a month or year – by comparing and finding the best deal you could find hundreds of dollars extra in savings each month that could go towards getting on top of debt or your savings goals.

Actions:

• Use free petrol price apps: apps like Fuel Map Australia and Petrol Spy provide real time price updates across Australia to help you find the cheapest fuel prices near you.
• Use supermarket comparison apps: check out apps like Wiselist that can help you save at the checkout by comparing prices between supermarkets before you hit the aisles.  
• Use price comparison websites: websites like Choice and Finder can help you find the best value (and quality) options for your needs from mobile phones to white goods and insurance.
• Use your energy provider app: Download your energy provider app to track, monitor and reduce your energy usage to help take the edge off those nasty power bills.

4. Do an audit of your bills

Speaking of bills… one healthy financial habit that you can put in place right away is to do an audit to see if you could save on your energy, insurance or telco bills. 

The rates you’re paying now may have gone up since you first signed up with your existing service provider, which means you could be missing out on a better deal with someone else. 

When you compare your plans and rates regularly to find the best deal, you’ll avoid paying the ‘loyalty tax’ – that’s the premium we pay when we stay with the same service provider out of loyalty or convenience.  

What about services you still pay for that you no longer use? Or private health premiums you no longer need or aren’t making the most of? Now’s the time to review your existing plans, insurances and memberships.

Actions:

• Compare bill plans and prices: don’t forget to include credit– it’s common to get a great introductory rate or ‘fee-free’ offer from a credit provider only to transition on to a much higher rate once your ‘honeymoon’ period expires. Make sure the rates and fees you’re paying for your utilities and credit card are still competitive. 

Find more tips for managing your credit card balance

Check out our credit card for health professionals to find out if you could save. 

• Review transactions for recurring expenses: Go through your account transactions for the last few months and you might be surprised by what you find. Are there things you’re paying for that you could do without or don’t use? Think fitness memberships that you don’t make the most of? Multiple entertainment or app subscriptions? Now’s the time to review and save.

5. Make cash and declutter 

Selling second hand household items is an easy way to make some quick cash to put towards bills or to build a financial resilience buffer in case of unexpected expenses or rate rises. If there are unused items lying around your home like old furniture, kids’ bikes, clothing, appliances or other household items you no longer need, you can list them for sale on places like Gumtree or Facebook Marketplace to top up your funds. 

Actions:

• Do a sweep of your home and garage: don’t forget to go through the cupboards – it’s often where we stash unused items like kitchen appliances, old kids’ toys and more.
• Use the 12 month test: ask yourself have I used this in the last year and am I likely to use it in the next 12 months? If the answer is “no”, it’s time to go!
• Get tips for listing items for sale: the right listing and good quality photos can have a big impact when it comes to interest from potential buyers. Find tips like these online to help you get the best price and stay safe when selling online.

With everyday living expenses climbing, staying on top of your finances can feel a bit overwhelming. It’s important to remember there are simple things we can all do to take control of our finances and boost our financial wellbeing for more peace of mind. 

More tips and resources: 

• Register for Essentially You – financial coach Betsy Westcott shares insights with that you can use every day to build your financial resilience and fitness.
• Search our website for “Saving” to find more on this topic.

Like this article? Share it with a friend.