5 Ways to Beat the Rise in Living Costs

 

With inflation at an all-time high, every Australian is facing the brunt of the rise in living costs. From fuel and food to rent and mortgages, the increasing cost of living is becoming more and more difficult to manage. However, not all hope is lost. We’ve got 5 tips to beat rising prices and stay afloat. In this article, we’ll take you through some money-saving tricks that will help combat inflation. 

 

1. Track and re-evaluate spending choices

If you see your bank account draining fast, the first thing you should do is evaluate where most of the money goes. Check the previous month’s spending statements to see what you spend a lot of money on. Free money tracking apps can give you a daily breakdown of your spending patterns. 

If you use multiple subscription services, you might want to unsubscribe from a few or opt for a family plan. Switch to a cheaper broadband and mobile provider. If you find yourself buying takeout a lot, switch to cooking at home to save money on food. 

Shop for groceries and produce in local markets as they are usually cheaper than larger stores. Some stores also sell veggies and produce for cheaper rates at the end of the day. Whenever you have to go grocery shopping, make a list beforehand and stick to it. Stop impulse buying snacks. Create a meal plan and cook in bulk to use up all your produce.

These cost-cutting measures save hundreds of dollars in the long run.

 

2. Cut fuel costs

While commuting might be inevitable, you can make smarter travel choices. Speak to your manager to negotiate a partial work-from-home contract if possible so that you don’t have to travel to work every day of the week. Working from home can also give you more time to cook and eat at home, reducing takeout costs at work. Bike or walk to close places instead of driving your car.

If you have to travel long distances, use public transport or carpool to save fuel costs. 

If none of these tips apply, you might want to look into fuel reward cards to get discounts every time you fill up. 

 

3. Consider alternative income choices

A side hustle can significantly increase your income and make it easier to cope with rising prices. If you have some time to spare, look into a second job. If you prefer to be on the move, check out ridesharing or delivery services. If you would rather work from home, you can look into virtual assistant, coding, and web development services. Online coaches and consultants also make a lot of money catering to overseas clients. 

If you’re the artsy type, you can sell your art online and take up commissioned pieces. This is a great time to monetise a hobby and make some money on the side! 

 

4. Cut costs at home

Your home’s energy, water, and heating bill occupy a substantial part of your expenses. Cut costs at home wherever possible by making some energy-efficient choices. Taking shorter showers can reduce water costs significantly by the end of the year. Use your washing machine in the coolest setting to save more energy. 

Meanwhile, figure out how you can regulate the temperature of your home more efficiently. Instead of running the air conditioner in the summer, use screens and turn the fan on. Conserve energy in the winter by heating only the rooms that you live in. Invest in energy-efficient appliances to bring down your energy bill. 

 

5. Refinance your home loan 

While the four tips above add up to reduced spending over time, refinancing your home loan can significantly cut costs immediately. When you refinance a loan, you find a new lender who pays out a previous loan for you and charges you a lesser interest. This can help you cope with rising costs and stay afloat, especially if you have other expenses you can’t avoid, like paying for your children’s education or groceries.

It is recommended to work with a mortgage broker, as brokers work with you instead of thinking about the lender’s profit margin. 

 

The Bottom Line

While thinking about rising living costs can get overwhelming, know that you are not alone. Reach out to a financial consultant to manage your money, and remember that saving every cent helps!