Saving money as the cost of living skyrockets

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Elisa Bavin* offers a few ways to save up to $5,451 per year in cost of living.


Cost of life has risen and, with a potential cash rate hike on the horizon, Aussies are feeling the pressure.

New research from Mozo has shown that households could save thousands of dollars a year by making a few simple changes.

“While there’s not much you can do about rising gas and food prices, there are things you can do to reduce your home loan, insurance and other personal financial costs” , said Mozo spokesman Tom Godfrey.

By making all the changes, households could save an average of $5,451 over the next 12 months.

People tend to “set and forget” their services, Mozo said, but taking the time to compare what’s on offer and upgrading to a more competitive product could increase your savings.

Here are five ways to save as inflation rises.

  1. A more competitive home loan could save you up to $3,000 on average

Although there is speculation about when interest rates will rise this year, the fact is that the cash rate is still at an all-time low of 0.1% and variable rates for home loans are good. market.

So taking the time to compare home loan rates could save you $3,000 a year based on an average loan of $400,000 paying off principal and interest over 25 years.

Mozo found that the average variable interest rate for a homeowner was 3.04%, compared to just 1.79% if you switched to the prime rate.

  1. Connecting to a more competitive NBN plan could save you $1,017 per year

It’s easy to set and forget your home internet plan, but with over 100 NBN providers offering service in Australia, comparing and changing could save you $1,017 on an NBN plan.

  1. Switching to a low-rate credit card could save you up to $567

With wage growth struggling to keep pace with the rising cost of daily living, if you’ve been on a spending spree, it’s easy to find yourself in a position where you’re carrying a balance on your credit card. which you will need to repay over time.

Mozo found that switching to a low-rate credit card could save you $567 over the next 12 months on an average balance of $4,000 at 7.49%, compared to a low-rate credit card. 20% interest.

  1. Leveraging a high savings rate of up to 1.35% could net you $564

With household savings at record highs, banking the main savings rate on call in Mozo’s database of 1.35% – instead of the average Big Four bonus savings rate of 0, 23% – on a $50,000 balance over 12 months could earn you $564 plus interest.

  1. A more competitive offer on your car insurance could save you $303

Analysis of quote data from 35 auto insurers across 9,503 customer scenarios for the Mozo Experts Choice Awards revealed huge price gaps in what insurers could offer.

Mozo found an average price difference of $303 per year between quotes for comparable coverage.

“By spending a few minutes researching a more competitive home loan, internet, and credit card provider, chances are you’ll have a little more money in the household budget to help cover the upside. costs of other products and services,” Godfrey said.

* Elisa Bavin is a journalist who focuses among other things on the economy, personal finance and business news. She can be contacted at [email protected]

This article was first published on au.finance.yahoo.com.

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