How can you save on household expenses? 

Aug 30, 2022 | Financial coaching, Reflection

Inflation and rising interest rates are impacting households in various ways. However, it’s certainly a topic on everyone’s mind at the moment as well as in media.

Below are some handy tips to help you check in on your budget and finances.

Tips to help you manage your household budget

  • Know where your money is going – spend consciously and track expenses
  • Consider setting up separate accounts for certain items and have a budget or planned spend. For example, you may set up a separate account for fuel and food and transfer an amount each pay cycle
  • Know what goods have seen significant price rises and try to find a cheaper alternative or avoid for the time being if possible
  • Cut back on some discretionary items like the daily coffee or eating out
  • Cook at home and focus on seasonal produce and fruit and veg that is cost effective like avocados at the moment
  • Delay the shopping spree on big ticket items for a while
  • Negotiate with providers – you may be able to reduce your fees on your mobile plan, internet service, insurance etc
  • How many streaming services are you subscribed to? Do you need them all?

The effects of inflation is personal to your situation

As mentioned in another blog, inflation figures are averages across Australia. Your personal or household level may be in line, above or below the national average.

If you have been able to create or add to savings over the last few years the current situation may not be as stressful as for others. Having 2-3 months of living needs in an account can provide peace of mind and a level of comfort that you can handle events such as those we are currently faced with.

Revisit your budget regularly

Whether you are very concerned, not at all concerned or somewhere in between, you should still consider these on a regular basis.

Revisiting your budget and expenses should be built into your yearly activities, such as at the start of the year or as your annual “spring clean”.

Knowing your expenses is a good practice.

Simon,
Financial Advisor and Founder – Core IFA

About the author

Simon Duigan is an Independent Financial Advisor and owner of Core Independent Financial Advice (Core IFA). Core IFA is 100% independent and receives no commissions or benefits from any product providers or financial institutions.. Instead, you can be confident that Core IFA have your best interests at heart.

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