Australians spend too much on food while trying to cut costs for other household expenses

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Australians are spending heavily in one particular household category, as more of us work from home, but could save thousands of dollars by making one small change.

New statistics show Australians are spending too much money on groceries and take out, but are compensating by trying to cut costs for other household expenses.

But it is possible to save even more, a family being able to save thousands a year, on average, by simply finding a better deal on basic commodities such as electricity, insurance and cellphones if they take the plunge. time to shop.

“Families can save up to $ 3,000 a year just by having time to look for a better deal, but instead they leave it too late and foot the bill when they have to,” said Victoria Devine, planner financial and founder of She’s on the Money. .

A survey of more than 3,000 Australians by the financial advice platform She’s on the Money found that six in 10 Australians spend up to $ 150 per person each week on groceries and take-out.

“Australians are freaking out about how much they spend on food,” Ms. Devine said.

“Cutting down on food costs is also one of the fastest ways to save money. [as well as] looking for better deals on all household services like electricity, cell phones, insurance and more, ”she said.

The study found that more than half of those polled have switched banks in the past two years to save money on monthly mortgage payments by finding a better interest rate.

“Financial freedom and money to buy a house were the two main goals of those interviewed, but they are overwhelmed with their finances and often don’t know what to spend and what they could save,” Ms. Guess.

There are a growing number of people who want to feel empowered about their finances and take steps to educate themselves about money, she said.

Ms Devine said one way for Australians to take control of their finances is to turn to free apps. “It helps them understand what they pay each year for household services and reminds them when those contracts expire so they have time to shop around,” she said.

GetReminded co-founder Tim Nicholas agrees that people are taking action to better control their finances after seeing a 70% increase in downloads of the GetRefused app in the last month alone.

“Insurance, cell phones and electricity are the main areas that people are setting up recalls to so they have time to find a better deal and save money,” Nicholas said.

“On average, families spend $ 14,000 per year on cell phones, car registration and insurance, home insurance, electricity, the Internet, home loans and streaming services,” he said. -he declares.

“It could be reduced by several thousand dollars a year, often 20% and more off the price of existing contracts, just by specifying what you are paying, for how long and what the competition is offering. ”

When it comes to cell phone plans, Nicholas suggests looking at how much data you need and whether you can bundle family data into one plan. He also suggests weighing contracts and considering purchasing a cell phone if you’re up for an upgrade.

“Many cell phone users pay for handsets they already own after their bundled handset and network service contract expires, and they continue to pay the same amount when they could save up to $ 50 each. months or more, ”Mr. Nicholas said.

For home and auto insurance, Nicholas suggests making sure your coverage accurately reflects the value of your home or car.

“Don’t let your insurer artificially lower the value just to lower your premium, but also don’t get tricked into not increasing the cost of rebuilding or replacing,” he said.

“People often only get one warning about their auto and home insurance policies that they ignore until the last minute, leaving it too late to search for a better insurance deal and save hundreds.”

Mr Nicholas suggests looking at the extras you think you really need rather than just wanting, and not just accepting an increased renewal premium from your current insurer.

“When shopping, make sure you’re getting the best value for your money. Evaluate if a higher deductible can lower your premium, ”he suggests.

He added that on average, people can save more than $ 400 a year on their electricity bills by switching providers at the end of their contract or asking their current provider for a better deal.

Mr Nicholas added that Australians pay too much for their internet.

“There are so many competitive internet deals that it’s crazy for people not to shop around, but many keep paying often until they move or switch to NBN,” he said. .

Meanwhile, he said interest rates are too good not to negotiate a better home loan deal.

“Big savings can be made by shopping around for mortgage providers or even asking your current bank to match what their competition is offering,” he added. “Still too many people pay an interest rate starting with three rather than two.”


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