10 Ways To Reduce Your Spending

Even though wages showed the strongest annual growth since March 2012, in real terms they fell 3.9% in 2022. During these financially hard times, with the latest interest rate rise of 1.9% and overall inflation rising to 7.8%, we can all benefit of ways to make our lifestyle more affordable.

10 ways to reduce spending in 2023

Here is our top 10 to help you save a little more and spend a little less.

1.   Understand your financial situation

Start tracking your spending for a month. Compare this to your income and your saving goals. Understanding where your money goes each month will make you less inclined to indulge in unnecessary things and opens up the potential for savings.

2.      Reduce car trips you are taking each week

Petrol and diesel are still expensive. Some may say it is the new normal, but that does not mean it is feasible for everyone. Therefore, we suggest trying to take other forms of transport, like riding a bike or taking public transport, or negotiating a partial work-from-home situation with your employer to reduce your petrol usage.

3.      Make your own coffee

We admit, us Melburnians have a coffee culture that is our pride and enjoy. Nevertheless, that one cup of coffee a day could go into your savings account instead. Before you know it you are saving $30 a week which is $1500 a year. ABC news even predicted 6 months ago that the price of café made coffees could go up by 40% this year. With that inflation in mind, you could save yourself an additional $600 a year by making your favourite cup at home.

4.      Compare insurances

This is the perfect time of the year to start comparing insurance policies. Websites like Canstar, iSelect and CompareTheMarket are great to have side by side to review your car insurance, health insurance, travel insurance, pet insurance, life insurance, home & content insurance, and even landlord insurance.

5.      Refinance existing debt

If your personal loan or mortgage rate are giving you stress at the moment, you should look into refinancing your loans for a lower interest rate. Even though mortgage refinancing is not as advantageous as it was at the height of the pandemic, it can still be beneficial for you.

6.      Shop around for gas and electricity providers

The oldest trick in the book: keep your eye out for deals! Gas, water, and electricity companies usually offer great deals to new customers and little rewards to existing customers. Therefore, don’t get comfortable with your energy providers but start comparing to get the best discount for this year.

7.      Cancel subscriptions

Haven’t watched Netflix, Stan, Binge or any other streaming service in the last month? Cancel it. These extras can add up quickly and most of the times you don’t have a lock-in contract. You could also make a list of the shows you do want to watch, subscribe to the service, binge watch those shows and then cancel your subscription for a few months.  Taking advantage of free trials, and making the most of them, is a handy tip to save on your streaming services. Same goes for that gym membership that you might not use regularly enough to keep it.

8.      Review mobile plan

Telecommunication providers usually offer more value for money to loyal customers. Look into family bundles or to combine your mobile plan with an NBN plan. These deals can save you a significant amount of money without being locked in for years. Giving you the opportunity to review periodically.

9.      Get a roommate, reduce spending by 50%

Although this tip is certainly not for everybody, this might be the push you needed to ask that person you have been dating to move in together. Or that friend who finally got a fulltime job. Or even a family member who could use the help as well.
Sharing your household bills is the most significant way to improve your own financial wellbeing.

10. Downsize

Maybe 2023 is the year that you decide that downsizing is the best option for you. We can help you get ready to sell your home this year and to get settled into a smaller, more affordable property that suits your new lifestyle.

Talk to us about how to reduce your spending

Another great way to save some money, is by following our Facebook and Instagram profile. Every Friday we post something interesting to do in Wyndham and most of these events are free to attend! Start skimming on the money, but not on the fun. Our real estate experts know the Wyndham area as no other and can give you handy tips as well. Contact us today to discuss your property and lifestyle needs.