Tips for saving money as the cost of living rises
Track your spending
The first step to saving money is knowing exactly what you spend. You can use our Budget Planner to get a look at your expenses versus your income, so you can see the full picture of your finances. It’s crucial to be honest about your expenses for the planner to be effective. If you overlook a few café lunches or your morning coffees in your food costs, your expenses won’t be accurately represented. Once you have a full picture of your income vs expenses, you can set a target for how much those expenses need to reduce for you to work towards your goals.
Start with your home loan
A 2020 Forbes survey found that the biggest reason respondents gave for not refinancing was that they weren’t sure it was worth it. Refinancing can make a huge difference to your monthly budget, and having a mortgage broker help you through the process can mean the process is minimal effort for maximum reward.
Based on a loan of $500,000 over 30 years, here’s what even a small change in interest rates can mean:
| Interest Rate | Monthly Repayment | Interest paid over 30 years |
| 6.00% | $2,997.75 | $579,191 |
| 6.25% | $3,078.59 | $608,291 |
| 6.50% | $3,160.34 | $637,722 |
| 6.75% | $3,242.99 | $667,477 |
Refinancing from 6.75% to 6% could mean an extra $245 in your bank at the end of each month. If you think you’re paying too much in home loan rates, give me a call and I’ll help you get an idea of what you could pay if you refinance.
Compare your bills
Even if you were getting the best prices a few years ago when you signed up for a service, it’s important to take a few hours each year to check whether bills, like your insurance premiums, utility bills and internet plans, are competitive. Take a look not only at competitor rates, but also what your current provider is offering now. If you get a new quote that’s lower than your current one for the same product, get in contact with them and see if you can reduce that rate.
It’s also important to evaluate your entertainment services, like streaming services. Australians spend $45 a month on streaming services. That’s $540 each year on streaming services alone. When you add in other entertainment services, such as music or gaming subscriptions, the cost of your entertainment rises dramatically. Add up how much you spend on entertainment, set a budget you’re comfortable with, and keep track of any price increases that push you outside of that budget.
Food costs
Delete your food delivery apps. This way you have to leave the house to get takeaway and you’re more inclined to use what you already have at home. In 2023 Canstar Blue found that Australians were spending $60 a week on food delivery apps. In 2022 it was $32. Food delivery apps are undoubtedly convenient, but $60 a week adds up to $720 a year. As the cost of living pushes up the price of our weekly food shops, that $60 a week can make an enormous difference in our budgets.
Other ways to cut down on food costs include:
- Make a night for leftovers – reduce your food waste and your food bills by having one night a week where you use up any leftovers.
- Order from home – ordering online can save a lot of money as it means you resist the temptation to pick up extras as you want around. Many supermarkets offer free click and collect, so you don’t need to spend more on delivered groceries.
- Stick to a shopping list – if your supermarket or greengrocers don’t offer online shopping, then a simple shopping list can help you stay disciplined.
- Start meatless Mondays – meat is expensive. Swapping the chicken for black beans in your enchiladas one night a week can save you a couple hundred dollars in a year.
- Don’t be loyal – brand loyalty is expensive. Shopping the specials or home brand items can cut your food costs significantly.