The cost-of-living has surged since the pandemic, presenting households with daunting financial challenges – here’s some helpful tips to navigate it.
From rising interest rates to inflation pressures impacting household finances, many people are seeking practical solutions to help stretch their budgets further.
Whether it’s simple things like taking your lunch to work, or more complex financial commitments – like your home loan – there are many ways to combat the cost-of-living crisis.
1. Shop around for the best deal
It’s easy to not see potential savings hidden within everyday expenses like loans and energy bills. Yet, these overlooked areas can significantly impact your bottom line over time.
Conducting regular reviews of your home loan can be a great way to make sure your loan is meeting your changing needs and is still competitive in the market. It’s beneficial to check if you are using your home loan features like offset accounts. If you are not using these features, it may be beneficial to find a home loan that’s fit-for-purpose.
Depending on your personal circumstances, a basic home loan may have a lower interest rate which can be more affordable, compared to home loans with additional features
It can also be beneficial to review your energy provider, internet package and subscription services. This can help identify if there are new money-saving deals on the market and remove subscription services you don’t frequently use.
2. Flick the switch
Older appliances can be less efficient and may have lower standby mode criteria. So, turning off these appliances may help to save some money long-term. Heaters, cooling units, printers, Wi-Fi routers, computers, dishwashers, and gaming consoles are some examples of these appliances.
3. Cut food waste
How many times have you bought groceries that you’ve ended up throwing out? You’re not alone.
In Australia, 2.5 million tonnes of food is wasted from our homes every year – that’s enough to feed the entire population of Sydney for two years!
4. Track your spending
It sounds obvious, but to pinpoint areas ripe for savings, it’s important to track your spending.
5. Harness natural light
Lighting can be a significant but often overlooked part of your energy bill.
Taking advantage of natural light can reduce your reliance on electric lighting, leading to potential savings.
And while you can’t always change the orientation of your home, you could try rearranging your living space to maximise the use of windows and natural light during the day.
This can also include strategic placement of mirrors to reflect light into darker corners of your home.
6. Utilise water saving devices
Water bills can creep up unexpectedly, but some mindful adjustments can help keep them in check.
Installing water saving devices like low-flow showerheads and dual-flush toilets, can help make a difference in reducing water usage.
Making changes to your home or lifestyle may seem daunting, but the potential savings can be worth the effort.