How to plug the money leaks

Author: ME

Published at: 12/15/2016 3:18:51 PM

Bucket Image

Leaks should never be ignored. You may not see the damage until it’s too late.

Ever noticed how weeds flourish under a garden tap? That’s because minor leaks from taps or hose fittings can be a rich source of water. In fact, a leaky tap can waste around 200 litres of water each day - and while the weeds may love it, it can leave you with an inflated water bill.

Weeds can be like a canary in the coalmine, providing tell-tale signs of leaking pipes anywhere in the garden. But sometimes it’s the leaks we’re not aware of that cause serious damage.

Check for hidden leaks

Small leaks around your shower, toilet or under vanity units may not seem like a big deal. But they can soon become one. The water has to go somewhere, and the most likely destinations are your floors and walls, which can deteriorate badly over time. Worse still, where seals haven’t been well-maintained the cost of damage may not be covered by your home insurance.

It’s an area where prevention is worth a tonne of cure. Identifying and fixing leaks puts money back in your pocket and keeps your home and garden in tip top shape.

It’s the same with a bank balance that constantly trickles cash. Sometimes we don’t even realise the impact of small but consistent money leaks though the cost can add up over time.

Plug the money gaps

Some simple strategies can help plug the financial gaps. First, identify the leaks. It’s estimated only one in two of us know exactly what our cash is spent on, and the free TrackMySpend app available through the MoneySmart website lets you monitor daily spending on the go .

Next, aim to save on fun things like dining out or entertainment that often account for spending leaks. Purchasing an annual subscription for your favourite magazine for instance can be cheaper than heading out to buy a copy each month.

Check out your key financial products too. Hidden fees and charges can really add up. A $5 per month account keeping fee on your everyday bank account for instance can siphon off $600 of cash over ten years. With plenty of bank accounts bypassing these regular fees, you don’t have to put up with a leaky account.