Cost of Living: 5 Simple Ways to Save

With cost-of-living pressures putting the squeeze on day-to-day finances, developing healthy money habits and finding more ways to save could help you find a bit more breathing space.

1. Clear debt hangover 

If, like many Australians, you’ve got some credit card debt that’s still lingering from the holiday period, make it your priority to pay it off as quickly as possible. With high interest rates continuing to accrue on unpaid balances, credit cards and other sources of buy-now, pay-later credit (such as Afterpay or Zip) are among the most expensive forms of credit available. 

Actions:

• Cut back on 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 to get by. Think retail and beauty, non-essential household items and décor, entertainment expenses and more.
• Delay larger purchases: Put off big spends on things like furniture or appliances until you’ve got the money to pay for them up front. 
• Reduce your credit limit: As you pay down your credit balance, reduce the limit on your credit card so you’re not tempted to rack up more debt.
• Consolidate debt: consider consolidating high-interest debt with a lower interest loan to reduce your interest repayments. Consolidating debt simply means rolling-over or 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 on the rise, now is a great time to get a home loan health check to make sure you’re getting the best value home loan for your needs. 

Depending on your current circumstances and home loan, refinancing your loan could result in a lower monthly repayment and significant interest savings over the life of your loan. 

Actions:

• Better off overall test: when comparing home loan options, it’s important to work out whether you’ll be ‘better off overall’. So, as well as home loan interest rates, make sure you compare other loan features that could help you save over the long term, like mortgage offset accounts or lower fees and charges. 
• Talk to a Lending Specialist: a lending expert can help you weigh up your options and find out if you could save by refinancing. Make sure you seek expert guidance.
• Get a free home loan health check: or just find out more about your refinancing options. Book a call back to speak with one of our Lending Specialists. 

3. Use technology to compare and save

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

Don’t fall into the ‘drop in the ocean’ trap. 

We can tend to think that saving a few dollars here and there won’t really make a difference. But because these are the essentials we’re spending on most frequently, even small savings each time we shop or fill up can make a big difference over the course of a month or year – by comparing and finding the best deal on your essentials you could free up hundreds of dollars each month that could go towards savings or getting on top of debt.

Actions:

• Use free fuel 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 plan your meals and save at the checkout by comparing prices between supermarkets before you hit the aisles.  
• Use price comparison websites: websites like Finder and Choice can help you find the best value (and quality) options for your needs for everything from white goods to mobile phones and insurance.
• Use your energy company’s app: Download your energy provider app to help you track, monitor and reduce your energy usage to put a dint in your power bills.

4. Do a bill audit

Speaking of bills… one healthy financial habit that you can put into practice straight away is to do an audit of your utility providers to see if you could save on your energy, gas, insurance or telco bills. 

The rates you’re paying now may well have increased 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.  

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

Actions:

• Do a bill audit to compare plans and prices: don’t forget to include credit cards as well – 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 teachers to see if you could save. 

• Use bank statements to audit other recurring expenses: Go through your account transactions for the last three months and you might be surprised how many things you’re paying for that you could do without or don’t even use. Fitness memberships that you don’t make the most of? Multiple entertainment or app subscriptions? Now’s the time to review or ditch to save.

5. Sell things you no longer need

Decluttering your home and selling pre-loved items is an easy way to make some quick cash to put towards bills or to build a financial resilience buffer in case of emergencies or unexpected expenses. If there are unused items lying around your home, like old furniture, toys, kids’ bikes, clothing, appliances or other household items you no longer need, you can list them for sale on Gumtree or Facebook Marketplace to top up your coffers. 

Actions:

• Do a sweep of your home and garage: don’t forget to go through those cupboards – it’s often where we stash unused items like kitchen appliances, old kids’ toys and clothes.
• Apply the 12-month test: ask yourself have I used this in the last year and am I likely to use it in the next year? This is good rule of thumb for deciding what stays and what goes. 
• Get tips for listing items for sale: the right listing information 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 costs on the rise, staying on top of things can feel a little overwhelming. It’s important to remember there are some 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.

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