7 steps to rein in living costs

Feeling nervous about falling property prices and an insecure job market? You’re not alone.

According to our Household Financial Comfort Report (HFCR) more Aussies are concerned about the uncertainty coupled with rising living costs. However, there are proactive belt-tightening tactics that will help you navigate the unknown and build up your emergency savings stash. Here are our favourite seven.

1. Review your spending

Think you know where your money goes? Don’t be so sure. Check out your everyday account statements for the real picture on what your spending looks like. Chances are you’re forking out more than you realise on non-essentials, and small but regular treats like take-away are often a key culprit.

2. Plan your grocery shopping

The cost of necessities is the biggest financial worry for Australian households. So plan your spending, aiming for one major shop each week to avoid trips to expensive convenience stores. Time your supermarket trips for later in the day when perishables are often heavily discounted. Or shop online to bypass impulse buys.

3. Check you’re getting the best deal on utilities

We’re being slugged by rising power bills but you don’t just have to wear higher energy costs. It may be possible to cut hundreds off your annual power bill just by switching to a cheaper provider¹. Check out websites like Energy Made Easy or Energy Watch to see if you could save.

4. Rethink your mileage

90% of motorists regularly head to the same service station to fuel up, yet petrol prices can vary by up to 10 cents per litre across different outlets. Petrol prices also vary from day to day. A variety of fuel price websites and apps such as MotorMouth can tell you when petrol is cheapest. Save even more by rethinking the need for a second car, or make your vehicle earn its keep with a peer to peer car sharing service like Car Next Door.

5. Monitor your digital spend

From on-demand TV to excess data charges, staying connected could be draining your bank account. Cut back where you can, and be sure your plan is right for you. It can work out cheaper to overestimate your data usage rather than pay a fortune for a couple of extra megabytes.

6. Go easy on convenience apps, hard on money management apps

Set clear spending limits for apps that encourage nice-but-not-necessary spending like home delivered meals. Load up on free money tracking apps that make monitoring your spending a breeze.

7. Don’t let Insta-envy fuel impulse buys

We used to ‘keep up with the Jones’, these days social media can be the thing that encourages unplanned purchases. Give priority to growing savings rather than “likes”.

Armed with a new approach to living costs, it’s possible to rein in spending and keep your savings soaring. There are plenty of ways to maximise your income to help your dollars go further. By making a few small changes now, you can fatten up your piggy bank and beat those rising-living-costs nerves.