Cost of Living 2023: 10 simple actions you can take to help handle the rising cost of living.

Inflation is hitting Australians hard at the moment. From food to fuel to housing, the ballooning cost of living has got many Australians breathing into a paper bag. But remain calm, it’s not all hopeless. There are many ways we can tighten our weekly budgets & keep spending low – so let’s review some of the best, quick cost-saving tips you can action immediately.

Quick Facts

• The cost of living measures how much money it takes to buy necessary items.
• COVID-19, climate change, & global supply chain issues have each driven up the cost of living in Australia.
• Housing costs, groceries, & transportation are 2023’s biggest expenses.

Cost of Living Examples

The cost of living is the amount of money it takes to afford basic and necessary expenses, such as:

• Food (price spikes on key food groups) 
• Housing (rent, mortgage & insurance premiums) 
• Transportation (petrol, registration & insurance premiums)
• Healthcare (update to suit your current needs)
• Education (review your fee options & government assistance packages)
• Utilities (eg. electricity, gas, phone & internet)
• Taxes (align yourself with a brilliant Highview Accountant) 

Here’s ten easy ways to save on the cost of living.

1. The big one: If you have a home loan, consider refinancing

Interest rates increased by 3.00% throughout 2022. For borrowers with variable home loans, this means they could be paying hundreds of dollars more in interest. But while refinancing can sound like a scary prospect, it’s better than drowning in a mortgage you can no longer afford. The grass (and your bank account) might truly be greener on the other side. Chat to our Finance team about this one, we are here to help! Email: finance@highview.com.au 

2. Cut down your energy usage & compare energy plans 

Winter chill brings the temptation to crank the heating. A good rule of thumb is to heat or cool the human, not the home. Plan some strategies to ventilate or insulate your house, depending on the property. Once that’s tackled, think big picture with your energy usage to find other ways to save. Use plug-in timers or turn off unnecessary gadgets ghosting power overnight or while you’re out, like your WiFi router, microwave, TV, etc. 

Long-term, compare energy plans (it only takes a few phone calls!) & consider switching if you find a better deal. If you already have some savings in the bank, consider upgrading your home with better insulation. An investment now could save you hundreds of thousands in electricity bills later – as well as the environment!

3. Investigate switching your bank account

Now may be a great time to find a more lucrative way to park your savings. Most people tend not to switch bank accounts because they believe it’s too hard or complicated – but this only helps the banks, not you.

Thankfully, it’s actually pretty easy to switch banks & save. Compare high interest savings accounts to find better deals & interest rates, then put in an application to grow your savings.

Term deposit interest rates have risen considerably too, so now may be a good time to jump at the opportunity if you have some money you don’t mind storing for a little while.

4. Buy groceries online, or from small local shops

Ever heard of the Gruen Effect? It’s why you often buy much more than you originally intended when grocery shopping. Turns out supermarkets are designed to encourage us to spend, spend, spend. Instead, don’t be enticed & buy online. YouGov found that Australians could actually save as much as  $1,360 annually by ordering groceries online. This way, you can carefully track what’s going in your basket – & watch your total as you shop. You can also compare your weekly shops & look at where you might be overspending! 

Food prices are going up on the whole, however, especially in meats, dairy, fruits & veggies, as well as starchy foods like pasta.

Make substitutions, like rice instead or pasta, or downgrade your brands to cheaper options from smaller retailers. AND – in the meantime, challenge yourself to eat everything in your fridge (so long as it’s in date) so you avoid wastage, cook in bulk with a slow cooker, & use the microwave instead of the oven (which saves power too, woohoo!).

5. Rethink your commute

If the current sky-high petrol prices are hitting you hard, cut corners on your bills (not the roads) by using government fuel check apps to compare service station prices. Thankfully, the government recently gouged the fuel excise tax, so retailers will be expected to pass on the savings to their customers ASAP. Australians also get to enjoy access to decent public transportation. Rethink your work commute by carpooling, biking, or catching the bus where you can. Now’s definitely the time to take full advantage of working from home where suitable too.

But if that still doesn’t cut it, have a look at the fuel reward discounts on offer at the moment to see if they could make a difference to your budget.

6. Switch your mobile/broadband provider

Internet & mobile access have fast become essentials – & telcos know it. Hence they’ll sneak sneaky fees into your bills, like excess data charges, or reduce your speeds till you’re watching videos 10 seconds at a time.

Don’t put up with it: compare mobile & broadband providers to find a better deal. Look for coverage, discounts, & extra perks (sometimes you can get free streaming for a year or data bonuses depending on the provider/plan). 

If you don’t use your mobile phone that often, you could save big time by switching to a prepaid plan instead of a postpaid one. This way, you know upfront what you’re spending & what you’ll get (rather than getting slapped with surprise excess data fees at the end of the month). Certain providers also offer bundling discounts (with T&Cs, of course), so you could save by getting your mobile & broadband from the same place.

Nowadays, it’s pretty common for providers to offer no lock-in contracts, so switching is easier than ever. The key is to do your research & get ruthless about what you really need. No point in spending more than you need!

7. Track your spending with a smart money app & set a budget

There are some pretty amazing smart money apps to help you keep track of your spending. Instead of trawling through your bank statements.

Download a money-saving app of your choice then have a look at where your money’s going. Once you have a clearer idea of your expenses, you can decide what you can do without. 

So you can set a budget! Budgets aren’t there to hurt your spending: they’re actually there to empower your spending. Don’t be scared of a budget.

For people on a salary or fixed income, budgets actually give you an idea of how much you have to spend, & how much you have left over.

Think of it like a game: if you save more here, you have more to spend there. It’s all about finding the right balance for your lifestyle & needs.

8. See if you’re eligible for government benefits or vouchers

Different states & territories have announced a range of vouchers to encourage people to spend locally, so check out your local Services Australia Apps to see what you might be eligible for.

9. Get amongst the free activities

Free fun is the best fun! Unplug for a day & explore free activities in your local area. Most cities will have free museums or council run parks, gardens, walks, & beaches for your enjoyment.

Brew a cuppa and do a little bit of research: your next adventure could be budget-friendly & just down the road.

10. Sell things you aren’t using

Last but not least: if you aren’t using it, sell it. Places like eBay, Gumtree, & Facebook Marketplace provide great platforms for getting rid of old items for a small profit. Clothes, old electronics, books, furniture, & even flipped items/arts & crafts could net you some quick cash for your savings.

As an added bonus, recycling items this way also saves the environment, since you’re reducing waste.

So in summary, how can you save money in 2023?

Think long term. Be proactive, advocate for yourself & do your research, but most importantly- surround yourself with the right experts who truly care. 

While you’re not in control of changing global market dynamics, there are plenty of ways to save money & manage the rising cost of living by working with our team. 

Our #1 tip is to take action. 

Discuss your options with our Highview experts who are here to help – you have a dream team on standby! Our Accountants, Finance Brokers, Financial Planners & Insurance teams all have the same goal – to help relieve our clients’ financial pressure & build their wealth with our expert guidance.