Living the good life at any age

And our tips for cutting costs without cutting out all the good things in life

In our high consuming society, almost everyone spends more than they should on some things – from everyday items to life’s luxuries. But if you’re trying to budget more effectively, you’re trying to save up for something big or you just want to be more disciplined with your money, there are  things you can do to make the most of potential savings.

Here are our top tips…

Everyday expenses

Groceries

Fresh fruit and veg

• Try to buy local fruit and veg that’s in season – it’s cheaper and better for the environment because there’s less transport involved.
• In-season fruit and veg can often be bought in bulk at farmers’ markets or even through online marketplaces. Buy up a bargain, share with friends, preserve, or stew and freeze for later.
• Avoid pre-packaged or pre-cut vegetables, as they’re almost always more expensive.

Specials and markdowns

• Shop later in the day when many fresh items are being marked-down. It’ll may still be good for a day or two or be able to be frozen.
• Keep an eye out for specials on non-perishable Items, and stock up.
• Opt for home brand products – especially if they’re Australian made, since they’re usually manufactured by the well-known companies but you’re not paying for marketing or a brand name.
• If you’re eligible for a Seniors Card (the criteria vary from state to state), check to see if your local shops or supermarkets offer seniors’ discounts.
• Avoid grocery shopping on an empty stomach. Feeling hungry can easily lead to impulse buying snacks and treats you don’t need.

Food and drink

Daily takeaway coffee

• On average, buying one takeaway coffee per day, equates to around $1,500 per year. To cut back, but still enjoy great coffee, buy a good quality French press (cafetière) or stovetop espresso maker and you could save thousands each year.

Meal prep

• Not just the domain of gym-junkies, meal prepping each week is a great way to use bulk foods and avoid the temptation of buying takeaway food when you don’t feel like cooking.
• Make up a big batch of stew, hearty pasta sauce or soup and freeze some for later.

Eating out and takeaways

• Limit the number of takeaway meals you buy each week. It can not only save money but can also be better for your health.
• Make dinners out a treat rather than a fall-back option when you’d rather not cook (this is where meal-prepping comes in handy).

Takeaways and restaurants

• If you order more takeaway than you can eat in one meal, put the leftovers in the fridge for tomorrow. Often the flavours are even better.
• At a restaurant, don’t be afraid to ask for a ‘doggy-bag’ if you can’t get through your meal. Most eateries are happy to provide containers because no one wants to see good food go to waste.
• In both cases, always make sure you follow the necessary food hygiene, storage, and reheating guidelines.

Recurring expenses

Utilities

• Head to the Federal Government’s Energy Made Easy website (or in Victoria, the Energy Compare site) and check that you’re getting the best deal on gas and/or electricity. If you haven’t checked it in over 12 months, you may well be getting a bad deal.
• If you need gas and electricity, check both the bundled and individual prices. Bundled packages are sometimes not as cheap as individual plans.

Telcos

• Give your phone and internet providers a call (or check their websites) to make sure you’re getting the best value plan for your needs.
• Check your mobile phone and internet usage to determine what you need each month. You might be paying for more data than you need or use.

Credit cards

• Call your credit card provider to make sure you’re getting the best deal possible. Don’t forget to factor in annual fees. If you always pay your credit card within the interest fee period, it might be better to choose a low- or zero-fee card even if it has a higher interest rate.
• Always try to pay your credit cards and store cards on time. Interest and late fees can quickly accumulate and become expensive.

Insurance (health, home, car, personal)

• Call your insurance providers to make sure you’re not paying too much, and that your policy is right for your needs. Just as people can be under-insured, it’s also possible to be over-insured.
• If you’re looking for personal insurance such as income protection or total, permanent disability or death insurance, look at the cover provided by your super fund. If you’re over 25, you’ll often be covered automatically , and if you’re not or you want to top up, the premiums come out of your super, not your savings.
• Compare insurance policies – especially health, car, and home insurance – to make sure you’re covered according to your needs.

Memberships and subscriptions

• Check any recurring memberships you might have such as for a gym, club, or association etc. If you’re not getting any benefit from them anymore, quit.
• Some businesses and organisations have set membership fees that can’t be negotiated but others, such as gyms and other health and wellbeing-related companies, often do have flexibility in their pricing and will be able to organise a better deal – especially if you suggest that you might leave and go to a competitor.
• If you’re thinking of joining a gym or other business that has ‘membership consultants’, get in touch with them towards the end of the month. Often the consultants have targets they’re trying to reach and will be more keen to negotiate a good price to sign you up.

Discounts

• A lot of organisations – for example automobile associations, credit card providers, frequent flyer schemes, sporting clubs etc – have special arrangements with other businesses to offer members discounts on products or services. Check these when you’re researching the best deals.
• Keep any supermarket grocery receipts that include fuel discounts – and when filling up, make sure you use the oldest ones first as discounts usually expire after one month.

Reviews and ratings

• For many of the expenses described above, independent review and rating organisations, such as the highly regarded Canstar website, can be a really good place to start when searching for and comparing the best providers and products (remember, cheapest is not always best).

Don’t be afraid to make the call

Companies that provide ongoing services often rely on people being sluggish when it comes to reviewing their costs – especially if the fees are being paid by direct debit or automatic transfers.

It’s a really good idea to review all your regular expenses annually, and call each of the providers to make sure you’re getting the best rates. You can put yourself in a powerful position by having their competitors’ fees and charges on hand as most companies will try to match or outdo their competition.

Except in rare cases, these businesses don’t want to lose you as a customer and will do everything they can to keep you – and if you do move to a different provider, don’t be surprised if your old provider contacts you during the ‘cooling-off’ period to try and entice you back.

As the cost of living increases, especially around essentials such as electricity, gas and groceries, a shift in spending habits and a  bit of research every now and then can save you a lot in the long run.