With rising bills and expenses, a helpful cost-cutting checklist can be a lifesaver! Many Aussies feel what they earn is never enough, and living costs are expected to continue climbing throughout 2022.
In fact, in January 2022, the inflation figure for Australia was 3%, compared to the most recent inflation figure (March 2022), which is now a hefty 5.1%. This is the highest inflation rate in Australia since 2009.
With the increase in the cost of living, we’ve compiled a list of tips on how you can cut down costs. Our cost-cutting checklist will benefit everyone, including the above-mentioned groups.
Cost-Cutting on our Major Expenses
Let’s take a look at what our most crippling costs are one by one and see how we can try and save money.
Housing
- Homeowners – consider fixing your interest rate. This can make a huge difference in your monthly repayments. Also, keeping your savings in an offset account is a good idea. This means that you don’t pay interest on your entire home-loan amount but on the home-loan figure, less the amount in your offset savings account. If you can afford to make more frequent payments or up the repayment, that will save you money on interest.
- Renters – The area in which you choose to live will affect how much your rental amount is, so be very sure to research the average cost of units and housing in prospective living areas.
Transport
With the cost of petrol and vehicle registration, tolls, and fines, you can save more than $8 000 per year by switching to public transport. If this is not an option, consider carpooling with families, friends, or work colleagues.
Groceries
There are many ways to save on groceries. You can budget, shop around and always use a shopping list. Use coupons and rewards programs, and don’t throw out your leftovers. Be creative and use them to create another meal.
Medical Costs
Over the past ten years, the average out-of-pocket medical payments have risen by 50%. There are ways for you to cut down on medical costs without compromising your health. Ask your doctor or pharmacist for generic medication, use your benefits and ask about outpatient facilities, which cost less than being admitted for procedures. Plan for emergencies, and most importantly, take care of your health.
Utility Bills
Heating and cooling your home makes up about 40% of your power bill. Avoid heaters if possible, and insulate your home if you are a homeowner. If not, throw rugs over tiled areas and use thick curtains and door snakes to keep your home at a comfortable temperature. Try and avoid over-using your clothes dryer! Take advantage of every sunny day you get.
Additionally, when your appliances are not in use, turn them off at the power point. Every bit of energy saved will help reduce the bills.
Recreation
Entertainment and socialising are essential parts of every life, but there are ways to do this on a budget. For instance, try to find a restaurant with a BYO policy or try a barbeque at home instead of going out for dinner with friends. That can be just as much fun, and the expense is much lower. Try new things and start up a hobby that will keep you busy at home. Look for free music gigs and try to go to the pub during happy hour.
Sometimes, even if you follow all the tips you can get, you may still fall short on funds. If you are one of those people, don’t stress. Credit24 offers quick loans of up to $10,000.
Our repayments won’t break the bank because we consider all your expenses when calculating them. For more information and convenience, you can access frequently asked questions.
IPF Digital Australia Pty Ltd, trading as Credit24, ABN 59 130 894 405. Australian Credit Licence 422839. The information in this article is of general nature and does not take into consideration your objectives, financial situation or needs. Lending criteria, fees and charges apply. For more information about our products, eligibility criteria and terms and conditions, please visit www.credit24.com.au.
Sources
- https://tradingeconomics.com/australia/inflation-cpi
- https://www1.racgp.org.au/newsgp/professional/out-of-pocket-costs-leaving-chronically-ill-vulner
- https://www.finder.com.au/money/cost-of-living
- https://9now.nine.com.au/a-current-affair/how-aussies-can-save-money-while-commuting-to-work/0e44a617-b951-46ca-a216-26c81eab3d46
- https://medlineplus.gov/ency/patientinstructions/000870.htm
- https://www.theguardian.com/australia-news/2022/jun/03/worried-about-rising-energy-prices-here-are-some-simple-ways-to-lower-your-power-bills
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