Simple money management tips to improve your household budget
Updated: Sep 2, 2022
These budget friendly tips can help you to save thousands (if not tens of thousands) of dollars every year on everyday household expenses.
Since the infamous pandemic hit the shores of Australia, households have been able to save money. In fact, the Commonwealth Bank believes that combined household savings totalled $260 billion during this period.
As Australia makes its return to near normality, we’re starting to see prices increase again. Benefits have started to lift, and the prices of interest, energy, and resources are making it difficult for households to continue the rate of savings experienced in the last two years.
With current events taking place in Europe there’s also uncertainty around how price increases on essential resources, more so fuel, will affect personal finances here in Australia.
Budget tips to improve your personal finances
All households have their own reasons for wanting to take financial control and improve their overall money management. We get that. Here at REIF we’re supporting clients to take improve their budgets and finances based on their individual household goals.
With current events unfolding in the world, presenting uncertainty around how we can maintain financial control, we’ve decided to share some budget friendly tips. These tips can help you save money on everyday household expenses and provide you with a sense of greater security.
Tip #1 – Plan your meals and make them yourself
If you’re looking to gain greater financial control you may benefit by saving money on your meals. This can be accomplished by avoiding takeout food and planning your meals for the week, prior to doing your weekly shop. Once you do your shopping, practice discipline, and buy what you need (in accordance with your meal plan). Then cook these meals yourself.
Tip #2 – Look around for savings
Following tip one, once you know what you need, look around for savings. Deals are around every corner, and you should look for these before you go out and shop. This can be done by browsing the internet for better deals within your area. This also be applied when you’re shopping for clothes and general household items.
Additionally, you may be surprised with the quality of name brand items.
Tip #3 – Review your energy and gas providers for better deals
A great way to save money is to review local energy and gas providers. This is a great way to compare the offers available for this everyday household expense within your location. You can do so by using free online estimator tools to identify the most suitable deal for you.
Before you make the switch to a different provider, you must make sure that you aren’t in a lock-in contract. Additionally, it’s important to note that some locations only have one provider.
Tip #4 – Save money on car insurance
Another way to save money on everyday expenses is to shop around for better car insurance providers. In Australia we’re lucky to have dozens of car insurance providers with a range of features. Compare the offerings available and find the best deal for you.
Tip #5 – Review all your lending for suitable offers
This is probably our favourite tip for improving money management. That’s because it’s the one you can recoup the most savings from. If you currently have loans, you can benefit from consulting a finance specialist and being presented with more suitable offers.
Additionally, if you acquire several loans, it’s worthwhile seeing if you can consolidate your debts. This process involves combining all your lending into one to reduce your combined interest payments. Furthermore, this can help you save thousands (if not tens of thousands) of dollars.
Tip #6 – Collate your loose change
Instead of giving away all your loose change or just spending it because it gets in the way, store it in a jar. Once your jar gets full, head on down to the bank to cash it in. You might be surprised with how much money you can save by doing this.
Tip #7 – Collate receipts for tax time
Understanding your tax entitlements is a great way to save money. If you’ve had to work from home because of the pandemic over the last few years, you may be able to claim work related expenses (telephone, internet, resources etc.) that you’ve paid for out of pocket. To see what expenses that you may be able to claim, click here.
Additionally, if you’re a property investor, you'll benefit from knowing the tax benefits you’re entitled to on your rental property. To learn more about these expenses, click here to review the entitlements listed on the ATO website.
Tip #8 – Manage your energy consumption
Even if you find yourself a better energy provider, there are still ways that you can further reduce your energy consumption. Here are some budget-friendly ideas that can help you to save on this often-hefty household expense.
· Make the switch to energy efficient light globes
· Be conscious of turning off lights that aren’t in use
· Use a power board
· Set fridge temperature to 4 to 5 degrees and freezer to -15 to -18 degrees
· Only use the washing machine on a full load and wash with cold water
· Avoid using a dryer and instead use a clothesline to dry clothes
· Reduce need for cooling and heating appliances by utilising curtains and closing doors
· Install solar panels to reduce long term energy consumption and revert to natural energy
For more information
If you’re looking for more information on how to review your lending on more suitable finance offers, please reach out on the details below. REIF are helping people to navigate a range of offerings and consolidate their lending. These strategies have been able to improve the personal finances of clients and save them thousands (if not tens of thousands) of dollars every year.
Ph: 1300 130 932