With inflation rate getting higher and higher in the down under last year, Australians were or are still facing saving dilemmas here and there. For the record, Australia was experiencing utmost levels of inflation as a result of ripple effects from the pandemic, Russia’s invasion of Ukraine, and strong consumer demand.
Although inflation is alleviating at the moment, the cost of living is causing strain for many Australians — the price of groceries, fuel, insurance, rent, and mortgage repayments is certainly taking a toll on many Australians. Some of them struggle to afford the basics of food, shelter, and heating.
While the effects of saving won’t be felt overnight, trying at least to do so with the help of a little bit of planning will definitely yield better results in the long run. In this article, we’ll share with you three tips to save money amid cost-of-living crisis you can do to save amid this dilemma.
Identify your expenses
Knowing how much you spend and understanding what your priorities are is the first step to saving money. Every household item has to be accounted for, so make sure to categorically organise your expenditure in a spreadsheet.
Include annual expenses, such as insurance and car maintenance to see clearly what’s left at the end of each month. Identify what you can cut out or where you can reduce your spending, like dining out, unnecessary subscriptions, and other recurring charges.
Conduct an audit of your finances
Try going back to your bank statements and look at your bank and credit card fees, which can vary between providers. It’s very important that you understand how much your bank is charging you. Call your bank and ask for a better deal on your charges. Consolidate your debts in one monthly payment, which may involve rolling over the debts into the one loan for you to make a single repayment. Book a time to consult with our broker.0
A lot of banks call mortgage holders to offer them a cheaper rate before they have a chance to refinance and might as well take advantage of this to push for a 1 % reduction in your loan. Just remember that the key here is to have a list of lenders ready who may offer a better deal which your bank won’t match.
Trim your grocery bills
Reducing your grocery bills to as low as $150 a week for a family of four can make a big difference. Weekly meal planning and prepping is the key! Cliche as it sounds, but creating a shopping list and actually sticking to it is helpful if you’re keen on saving up more. List everything – from lunches down to snacks.
Take advantage of specials and try switching things up, like sticking more to home brands. Watch out for local weekly veggie boxes, cut some meat out of your family’s diet, and grow your own produce if you have the luxury of time and space.
Like any other financial pursuit, saving up requires not just resourcefulness but discipline to stick to your plans in order to hit your goals.
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