We don’t have to tell you that our wallets (digital or real) are feeling lighter these days after a trip the shops or after bills are paid. Inflation is still eating into our money and high interest rates are here to stay, at least for the foreseeable future. So how can you better manage your budget with cost of living rising? We have some tips to save to better manage your budget.
Refinancing your home loan
Have you been on the same home loan for a few years now? Fixing rates for as long as possible was the smart thing to do when rates were ultra-low, though many of those fixed rate mortgages are expiring. Now is the time to refinance your home loan to lock in a more competitive rate; especially if rates continue to climb or stay high. Even getting quotes can “shock” your current lender into matching them, saving you money almost instantly if they come to the table – if they don’t, ditch them for someone cheaper!
Switching insurance providers
The costs of insurance are rising along with everything else, especially in higher risk areas. Take a look at your portfolio of insurance such as home and contents, car or vehicle, rural property, or public liability insurance and contact a broker to see if you can get the same amount of coverage for a lower rate. It could save you hundreds or even thousands of dollars a year.
Comparing health insurance with no waiting period
If you are paying a lot for health insurance, you should compare different providers to see if you can get the same level of cover for less. Perhaps you can switch to lower levels of cover if you have older children and aren’t considering having any more. If you are switching to a new provider at the same level of cover, you can join without having to sit through a waiting period. For details on how it works, learn more here.
Switching energy providers and installing energy savers
In July of 2023 the wholesale price of electricity leaped by 20-30% pushing up already high prices atmospheric levels. If you haven’t switched energy providers in at least 12 months, it may be well worth looking at retailers that pass on as many savings as possible instead of enticing you to sign up with free streaming service subscriptions or rewards points. Though it may be a bit of an initial outlay, but replacing Halogen or CFL lights with energy efficient LEDs or reducing your heating to below 18C can make a big difference. You can also apply for the Victorian Energy Upgrades program to install more efficient heating in your home.
Making the most of your tax return
Though our tax returns may not give us a bumper crop of cash to splash this year, you can make the most of it by making some wise decisions. Though we may want to splurge on a new item or save it all for a rainy day, spending a good chunk of it paying down debts can help ease some of the burden of high inflation on your finances. As interest rates rise, so does your debt level – and this flows on to credit cards and non-secured loans such as unsecured personal or business loans.
If you are struggling to make ends meet and need some help, you can access Rural Financial Counselling Victoria services. For more information, click here.
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