The cost of living is rising in Australia: this is an unavoidable fact. With prices going up and salaries not able to keep up with inflation, many families are starting to wonder how they’re going to continue affording their lifestyle in 2024 without making some drastic changes.
It’s a time of bootstrapping for many across the country, but saving your pennies and staying on top of your finances doesn’t have to be as stressful as it may sound.
We’ve put together a list of 5 simple ways you can alter your spending habits, which will help you cut costs over the rest of 2024. Read on to find out how.
1. Be selective with your credit card
Having a credit card is no bad thing. It can actually turn out to be a huge weapon at your disposal, if you pick the right one, and use it wisely. You’ll find credit card offers aplenty once you start doing your research, so don’t just go with the first one you find, or the most flashy reward that’s being advertised.
You could benefit from low annual percentage rates, no annual or international fees, cash back, travel rewards, sign-up bonuses or spending points. Each family has a unique lifestyle, so be scrupulous in looking for the offer that is most appropriate to your spending habits, or where you’ll get the most out of your card.
2. Become more energy efficient
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It’s not as glamorous or savvy as some of our other tips, but energy bills really do rack up, and it’s such a simple step in cutting costs in your household. Take your TV off standby, turn off lights when you leave the room, unplug devices that you’re not regularly using. Not only are these eco-friendly choices better for the environment, they’re better for your wallet too. Without even really doing anything, your energy bills will see a sharp drop.
Do some research into other deals available. Sticking to the energy provider you’re currently with may be the easy option, but there might be huge savings out there a few clicks away. It’s worth spending a couple of hours doing the research if it will save you some big bucks in the long run.
3. Save on food costs
Across Australia, food and household goods are the second highest cost in a family’s weekly spending, just below rent. On the plus side, that means that there’s a lot more room for you to save money in this department, and here’s some easy ways how.
Supermarket shopping
If you can spend less overall when it comes to your food bill, you’re on the right track. Do you really need that expensive brand of pasta, when the supermarket brand is made of exactly the same ingredients and half the price? Try to look objectively at the items you pay in your weekly groceries, and see if there are any you could switch to cheaper alternatives for, because often you’ll be surprised at how similar they taste.
No doubt, there probably are a couple of food items you’re not prepared to compromise on - and that’s ok, but across the board there are definitely ways to cut down on your spending.
Meal prepping & leftovers
Meal prepping is easier when you’re feeding a family. Cook large batches of food in one go, so that everyone has one meal for dinner, and another for lunch. Alternatively, you could freeze your leftovers and have them ready for a rainy day.
Preparing batch meals saves money because you’re cooking in bulk, which means you’re getting better value from your ingredients. For example, a larger tin of tomatoes is almost always a cheaper price per kg than a smaller size. So cook larger portions and don’t waste food - or money.
Cook at home
The temptation to eat out, out of convenience or laziness is all too tempting, and easy. But if you can cut back on the number of restaurants you go to, or takeaways you order, you’ll see a big drop in your monthly spending. Try to save those fancy meals for special occasions or little treats. Not only will your family appreciate them more, but you’ll be further cutting back on your food bill.
4. Reassess your entertainment spending
We’re not suggesting that to cut costs in 2024 you have to stop doing all the fun things that you and your family enjoy, but there are certainly some savvy ways to get the most out of your time together, without paying through the roof for it.
For example, instead of going to the cinema once a week, go once a month, and swap out some of your film tickets for movie nights at home. If you have three streaming services, switch to two. If you and your kids like shopping, go to thrift stores instead. Switch from paying for an expensive outdoor activity, to having a picnic in the park, or going on a nature-spotting trail. There are many easy ways to do what you love, but more affordably.
5. Reduce impulse buys
Everyone falls prey to impulse purchasing now and again, but at least if you have a more conscious awareness of when you might be most likely to do it, you have a better chance of avoiding falling into that trap. If you’re someone with the tendency to head into town the moment it’s payday, try to resist the urge to walk into all your favourite (and most expensive) shops, and pick the first thing you like off the shelf.
Try to wait at least 24 hours before making large, unnecessary purchases, and look at the bigger picture of how it will factor into your monthly spending before making any drastic decisions.
See? Cutting costs doesn’t need to mean cutting out. There are easy ways for you and your family to save money, some of which you’ll hardly even realise you’re doing. By following our tried-and-tested steps, you’ll make sure you have more in the bank for when you really need it.
