It’s safe to say that inflation bites at the moment, and many of us are feeling the pinch when it comes to keeping up with the ongoing cost of living crisis in 2023. With the cost of everyday essentials rising significantly, it’s getting harder and harder to keep our living costs down and to justify certain purchases. But calm down: it’s not all hopelessness and despair. In fact, there are many ways for consumers to tighten the proverbial belt until wages keep pace with the Consumer Price Index, and today just happens to be your lucky day.
In light of the ongoing cost of living crisis both in Australia and around the world, we share 7 top tips for managing your finances and saving to help you weather the current financial storm. If you’re ready to cut down on costs and save extra money on your monthly spending, simply read on to find out more!
1. Seek Professional Advice
If you are someone who is currently struggling to keep afloat financially, one of the best things you can do is to seek professional help. With the cost of living crisis predicted to only get worse before it gets better, seeking the help of personal financial planners is a great way to learn new skills and tips that will allow you to protect your income, reduce financial uncertainty and find new ways to save money and grow your assets. Moreover, a personal financial adviser can help you set financial goals so you feel confident that your future plans are achievable. If you’re not on track to achieving the goals you have set, an experienced professional can help you put the right strategies in place, or set more realistic goals if needed.
2. Cancel Services You Don’t Use
The next tip that is guaranteed to help you save a significant amount of money in the current financial climate is to take some time to figure out all the services you are subscribed or signed up to. Once you have a rough idea of where your money is going every month, consider canceling services and/or recurring purchases that you don’t use or can’t afford anymore. If you are signed up to 7 different streaming platforms, a great idea would be to assess which services you make use of the most, and to eliminate the ones that are simply draining your bank account. The truth is that with the prices going up, it can be hard to justify spending over $50-$100 a month on streaming apps, especially if you’re not using them to their full potential. Since most of these purchases are direct debits, it can be all too easy to forget that the money is even leaving your account, so be sure to carve out some time to go through them all.
Top Tip: There are plenty of free options available when it comes to entertainment and music, including a variety of free streaming services that offer a wide variety of movies, TV shows and documentaries for you to enjoy.
3. Buy Groceries Online Or From Local Shops
It’s no secret that the cost of groceries in Australia have soared to new heights since the start of the pandemic, as pressures from disruptions in supply chains and high freight costs continue to rise. Add natural disasters such as floods to the mix and you have a recipe for disaster — no pun intended. As a result, large supermarket chains such as Woolworths, Coles and Aldi continue to pass along their higher business costs to consumers. Thankfully, consumers can do their best to avoid paying exorbitant prices for groceries by purchasing online, or from smaller, local shops. In fact, YouGov found that Australians could actually save as much as $1,360 annually by ordering groceries online and making use of promo codes, online specials and discounts.
Smaller (independently owned) fresh markets and grocers also offer much cheaper prices compared to large supermarket chains, allowing you to get more bang for your buck — all without having to compromise on a healthy, nutritious diet. So, the next time you need to do your weekly shop, consider online shopping or heading to your local grocers to save a significant amount on your food shop.
4. Switch To Cheaper Options
While we’re on the topic of groceries, let’s talk about switching to cheaper options. According to choice.com.au, tests have found that supermarket homebrand products have improved in quality in recent years, occasionally even outdoing national brands in taste tests. This is fantastic news for anyone who is looking to cut down on grocery bills by switching to cheaper brands or supermarket-brand products for savings of up to 40%. Most supermarkets offer their own versions of popular branded products which can save you hundreds of dollars a year. For additional savings, consumers are encouraged to consider buying seasonal produce or locally grown, year-round Australian produce like cauliflower, broccoli, and lettuce. You can also make cost-friendly substitutions, like rice instead of pasta, or downgrade your brands to cheaper options from smaller retailers. Homebrand for the win!
5. Use Discount Or Promo Codes
Cost of living crisis or not, the reality is that we all still need to purchase things. With this in mind, one of the best tips we can share with our readers is to consider shopping online instead of in-store. The main reason for this is that many retailers offer online promo or discount codes that can be applied to your cart before checking out, thus saving you a significant chunk of cheddar. Personally, regardless of what we’re buying or where we are buying from, we always check if the site has any discount codes available to use. If you are unsure about where to find discount or promo codes, there are numerous apps and browser extensions such as Honey that automatically find and apply coupon codes at checkout with a single click. These tools help to take the frustration out of searching for coupon codes by automatically finding the best codes on your behalf regardless of where you shop, thus saving you a significant amount of time and money with virtually zero effort.
6. Cut Down On Utilities
Tip number 6 for saving through the cost of living crisis is to try and cut down your energy, electricity and water consumption. With an increase in wholesale electricity prices expected to rise a further 30% in 2023-24, everyone can benefit from finding ways to cut down on utility usage and associated costs. Generally, to save electricity and energy usage, we recommend being vigilant with turning things off. For example, if you are someone who leaves your porch light on all night long, something as simple as switching it off can save you a ton of money in the long run. The same logic applies if you leave your TV or computer on standby mode, which is a massive energy drainer and can cost you more month on month. Make it a habit to do a ‘plug check’ every time you leave the house and you’ll definitely notice a change.
When it comes to water usage, consider cutting down on the amount of time you spend in the shower. Washing machines are also often the main culprit when it comes to excess water usage, so be sure to check if your washing machine has an energy-efficient wash option and opt for a cold wash over a hot one. Learn more about how you can cut down on energy and water usage here.
7. Track Your Spending With An App
Last but not least, tracking your monthly spending with the help of a simple app can be a great way to help you keep track of where your money is going. Instead of spending hours trawling through your bank statements, consider using a smart-money app that takes the frustration and effort away with the help of AI technology. Some of the top money saving/spending apps in 2023 include Mint, Goodbudget, PocketGuard and YNAB. On top of giving you a clearer picture of how much you are spending, these tools also help to categorise your expenses to offer you a better idea of your individual purchasing behaviour. Equipped with this knowledge, you will be much better able to assess your expenses and decide on what you can do without. Every little bit counts!
And there you have it — 7 expert tips for saving and staying afloat financially through the ongoing cost of living crisis. By following these tips, you will be well on your way to better financial health, regardless of the economic climate. All the best!
What are some of your personal tips for saving through the cost of living crisis? Be sure to share them in the comments section below!
