With current Australian inflation hovering at 5.6% according to the Australian Bureau of Statistics, the rising inflation has put undue pressure on household bills. This is why we have prepared this article, to help you put into practice some easy wins in saving costs for your household bills while stretching your dollar further.
It is essential that you create and stick to a household budget, while finding ways to increase your income and reduce your spend.
- Create a household budget. Prioritise essential spending over non-essential spending. Allocate an emergency fund and keep that aside for rainy days. Ensure that in your budget, there’s a line item for long-term savings and have the discipline to stick to building this up.
- Plan your meals and cook in bulk so you don’t detract from your health plans and this also keep spending in check, with meals being one of the biggest spend item on a budget
- Declutter items and sell things you no longer need or donate them in support of our circular economy
- Review your spending. Take a close look at where your money is going each month. Are there any areas where you can cut back? This could include eating out less, cancelling unused subscriptions, or shopping around for better deals on essentials.
- Find ways to save. There are many ways to save money, even if you’re on a tight budget. You could start a side hustle, sell unwanted items, or get cashback rewards on your purchases.
- Earn extra money. If you can, find ways to earn extra money. This could be through a part-time job, freelance work, or starting a small business. Or selling off your things on Gumtree or Facebook Marketplace. It also supports a more sustainable style of living.
- Cut some expenses. There are some expenses that you may be able to cut altogether. This could include cable TV, gym memberships, or eating out.
- Shop around. Don’t just buy the first thing you see. Take the time to shop around and compare prices. You may be surprised at how much you can save. Shop secondhand. You can find great deals on clothes, furniture, and other items by shopping secondhand. Shop smart and look for bargains online and in supermarkets. You can also buy in bulk.
- Adjust your budget. As inflation continues to rise, you may need to adjust your budget accordingly. This may mean cutting back on some expenses or finding ways to bring in more money.
- Track your transactions. It’s helpful to track your spending so you can see where your money is going. This will help you identify areas where you can cut back.
- Change budget line totals when needed. As your expenses change, you’ll need to adjust your budget accordingly. This may mean increasing or decreasing the amount of money you allocate to each category.
- Cook at home more often. Eating out is a major expense, so cooking at home is a great way to save money. Bring your own lunch to work. This is another way to save money on food.
- Take public transportation or carpool. Driving can be expensive, so consider taking public transportation or carpooling instead.
- Downsize your home. If you can afford it, downsizing your home can save you money on mortgage or rent payments.
You can also ensure that your household bills are kept in check by taking measures to avoid common budget wasters.
- Leaving lights and electronic appliances on when not in use: Forgetting to turn off lights, electronics, and appliances when not in use can lead to unnecessary energy consumption and higher electricity bills.
- Ignoring insulation issues: Poorly sealed windows and doors, as well as insufficient insulation, can result in heat or cool air escaping from your home. This forces your heating or cooling system to work harder, driving up energy bills.
- Leaving water running unnecessarily: Neglecting to turn off faucets while brushing teeth, doing dishes, or taking showers can lead to significant water wastage and higher water bills.
- Ignoring regular Electrical Appliances and HVAC maintenance: Dirty filters and inefficient HVAC systems can consume more energy to maintain a comfortable temperature. Regular maintenance of your electrical appliance and HVAC systems can improve efficiency and lower energy bills.
- Not using the thermostat: Without a programmable thermostat, you may end up heating or cooling your home when it’s not necessary. Using one can help regulate the temperature based on your schedule, saving energy and money.
- Failure to optimise appliance run cycles: running the dishwasher or washing machine with partial loads is a huge waste of water and electricity.
- Not unplugging devices: Leaving devices plugged in when they’re not in use can result in “phantom” energy consumption. Unplugging chargers, entertainment systems, and other devices can save on electricity costs.
- Setting the water temperature on the thermostat too high: Keeping your water heater at a higher temperature than necessary can lead to increased energy consumption. Lowering the temperature while still ensuring a safe and comfortable setting can save on energy bills
- Using the air conditioner instead of using the fan: Installing ceiling fans can drastically help reduce the bills
