Spend some time to save on your spending
Focusing on your finances could help you save a lot of money. Here's how.
By Darren Smith from National Seniors Australia’s partner Financial Advice Matters.
In many households, rising interest rates are impacting our money mindset and, in some cases, our actions and behaviours.
Specifically, when it comes to managing the increasing mortgage and other loan repayments, it is beneficial if you can keep well ahead of the minimum payments. This can do a couple of things: it gives you a little buffer while rates are lower for future surprises and, if you get in the habit, it means that you get to plan ahead and adjust your lifestyle before you are forced to.
For those coming off very low fixed mortgage rates over the next 12 months to much larger variable rates, it would make sense to start paying additional amounts now or keeping it in your rainy-day fund so you start to adjust your lifestyle.
For some though, it will require finding extra ways to save and this will take time, focus and effort. From the work Financial Advice Matters does with financial wellness education, there are several actions that have delivered favourable results for many households:
1. Spend this time getting your spending down on a bit of paper, into a spreadsheet or even using some of the popular apps that are now available. This activity is like looking in the mirror: there will be some obvious things that stand out very quickly. A great process is to pick 1 or 2 of the bigger spending categories and look for ways to save.
2. If you have a loan, do some quick research using comparison websites and then ring your existing bank and politely ask for a better deal. Most banks want to keep the business and many loans are being refinanced now. If this does not deliver results, then it may be worth considering refinancing to generate some savings. If you go down this path, talk to a professional so you understand upfront what will be involved.
3. Review your insurance premiums and the cover you have. This applies to all types of insurance. It is important to check whether you still need the level and scope of cover, whether there are benefits to increasing your excess or even using the same provider to bundle your insurances (car, home, boat, caravan, pet and in some cases personal insurance). Discounts are normally offered when you do this.
4. There are some great comparison providers who will do some of the leg work for you. However, it’s important to keep in mind that they may represent a smaller set of providers and they can be persistent in wanting your business.
5. Using your membership discounts with groups (for example, National Seniors Australia) to buy e-Gift cards for regular purchases such as groceries and save 3-5% on your current spend. This can also apply for getting discounts on your petrol purchases with selected outlets.
To save with government concessions, use the National Seniors Concessions Calculator.
6. Get organised with your shopping list. There is a lot of benefit to operating from a list and limiting some of the temptations. There are apps that can compare your proposed list with different shops to help you identify savings. Getting organised with your groceries is so important. For many, the simple act of preparing work lunches at home can save a lot of money.
7. Write down and keep a list of your subscriptions and how much you are paying on health clubs, phone applications, streaming services etc. On a regular basis ask yourself whether you are using them and/or whether it makes sense to cancel some.
There are always more things we can do but focusing on these seven action areas will help deliver some real savings you can direct to areas that are important to you.
Those who like to keep aware of budget boosters can connect to Financial Advice Matters by subscribing to the Budget Booster newsletter.
