Almost everyone is feeling the pressure and noticing that their money isn’t going as far as it was due to inflation and the high cost of living.
Everything from fuel to groceries to interest rates is increasing and research shows that around half of Aussies haven’t been able to save money and are living pay cycle to pay cycle.
Household spending increased 7.6 per cent from January to April and Australian banks have reported a reduction in credit card spending.
Consumers are spending less on disposable items such as closing, recreation, household furniture and meals out.
Balance transfers and debt consolidation
Money Transfer Comparison says that most of the major banks offer you a zero interest-free introductory period. NAB and St George offer cards with zero interest for the first 32 months.
Debt consolidation loans can be helpful when you have multiple debts and can be taken out by borrowers with good or bad credit.
A consolidation loan helps with keeping track of your repayments and you can save money on fees that you might have incurred by having multiple loans.
Cook in bulk
Nectar Mortgages Licensed Mortgage Broker, Geoff Grist says that you should cook in bulk. Instead of just making enough food for one meal make enough for three or four and then freeze the leftovers.
It will save you money because you won’t need to make a trip to the supermarket where you could be tempted to buy things you don’t need. It will also make use of groceries in your house.
Cancel unused subscriptions
You could be throwing away a lot of money on subscriptions that you don’t use. That may include smartphone apps, media subscriptions, streaming services or gym memberships. A lot of people sign up for free monthly trials and don’t cancel when the free trial ends. Check your bank statements to see if you could cut any subscriptions you don’t use.
Look for cheaper childcare
Money Transfer Comparison research shows that the average Aussie family spends $105 for a ten-hour day of childcare in Australia. Although the government subsidises 20-85 per cent, that still means the average family spends $50 per day on childcare per child. To save money, compare fees at different centres using comparison sites like Finder and look at whether it’s cheaper to send your child to care closer to home rather than work because childcare in the suburbs is often more affordable.
Save on money transfer fees
According to Money Transfer Comparison 46 per cent of Aussies spend money supporting family overseas. 33 per cent of those send money through the banks, which is one of the most expensive options because fees can be upwards of $10 per transfer. Some even charge $20 per transfer. Money transfer services are much cheaper and sometimes there are no fees at all.
Compare utilities plans and insurance premiums
Most people set and forget their electricity, phone and insurance policies without comparing the different options available. Most energy contracts have a minimum period of 12 months so at the ten-month mark it wouldn’t hurt to start looking at other providers to see if you can find a better deal.
Shop around for better interest rates
Mr Grist says that you can get a cheaper interest rate if you shop around. He says that he had a client who was paying interest of over four per cent but due to shopping around was able to reduce that to a rate between two and three per cent.
You can either use a mortgage broker to help you find a better deal or comparison sites such as Finder or Canstar.
While you may have your favourite supermarket, a Roy Morgan study shows that you could save between $1500 and $2500 a year simply by switching. If you can’t change supermarkets then switching to cheaper brands can also help you reduce your grocery bill.
Open a high interest or term deposit account
While homeowners are struggling due to rising interest rates, savers can take advantage of better rates. While some banks are yet to pass on the rates hikes to savers, Westpac, ANZ, NAB and Bank of Queensland all offer term deposits with interest of over 2.25 per cent. There are good regular savings accounts as well, including Citibank’s Online Saver Account, which pays 2.10 per cent interest for the first four months and then an ongoing variable rate of 1.10 per cent.
Change how you pay your bills
Money Transfer Comparison’s research showed that 76 per cent of Aussies are aware of fees they may incur when they pay bills. As a result, 54 per cent are now paying their bills through BPAY, PayPal or electronic transfer to avoid credit card surcharges. They are also setting up direct debits from their bank account for regular payments to avoid late fees.
Compiled with the help of https://moneytransfercomparison.com/Australia/