Have you noticed how the cost of living is on the rise at the moment?

Money can give you the freedom to do and have the things you really love, but it can also feel like it’s tying you down when you don’t have enough of it. With the cost of so many everyday items – from fuel to fruit and veg – creeping up, many of us are feeling the pinch.

There’s good news though, because by getting creative and thinking twice about what you spend, you can start to cut your costs and have more to spend on the really important things.

Here are some of our tips for saving money around the house:

PERSONAL FINANCES (Sorry to start with the boring stuff)

  1. Budgeting… that sensible thing you know you should do but never quite get around to. It may be the last thing you want to spend your time doing, but it really is important to know how much you have available to spend in the first place. Lots of bank websites offer tools to help you set a realistic budget, and from there you have more control over your spending.
  1. If you have a credit card, make sure you’re getting the best deal available. Fancy reward programs might seem like a good bonus, but you can end up paying for them with higher interest rates.
  1. While we’re on the topic of credit cards… Banks love to entice you with “90 days interest free” offers, but these only apply if you pay off the full balance every month. Set up a direct debit payment so you’re not hit with late fees when you forget to pay on time.
  1. Got a mortgage? You can shop around for that, too. Just be sure to check the penalties and fees you’ll have to pay to exit your current one, so you can calculate the true savings you’ll achieve from a transition.
  1. Many personal finance providers will give you better rates if you have all your products with them in one package. Find out whether it’s worth having your mortgage, credit card, current account, personal loan, etc. all under one roof.

GET INSURED

  1. Home and vehicle insurance policies will offer you a lower premium in return for a higher excess. You’ll save money on your monthly/annual payments, but in the event of an accident you’ll have to fork out more, so make sure you have money set aside to cover this.
  1. Income protection insurance is essential if you have a mortgage, and life insurance is not just something to think about when you get old. “Wait, isn’t this meant to be a list of ways to save money?” you ask. Well, sometimes you have to spend now to save yourself money in the future.
  1. As with personal finance, you can save money on insurance policies if you have them all with one provider. Find out whether your existing providers will give you a multi-policy discount if you move everything to them.

HOW TO PAY

  1. When you’re out shopping, pay with cash if possible. If you can see how much you’re actually handing over, you might think twice about your spending. If you don’t have cash, use a debit card rather than a credit card.
  1. If your credit cards have become a bit of a juggling act, try to reduce the number you have. This will save you money on fees and let you get the most out of any reward programs.
  1. If you’re shopping for something specific, take the cash you need and leave your cards at home. That way, you won’t be tempted to do any impulse buying.

ENERGY & WATER CONSUMPTION

  1. Keep your air conditioners set to 24C when it’s hot, and pop another layer on when it’s cold. Consider home insulation if your heating bills are high.
  1. Take a shower rather than a bath, and try to be in and out in less than four minutes (you can time it by singing one full rendition of your favourite song). Also think about installing a water tank.
  1. If you haven’t already made the switch to energy-saving light bulbs, do it! And it goes without saying that you should turn off the lights in areas you’re not using.
  1. Is your fridge getting on a bit? It’s the one appliance that’s always on, and a top star-rated fridge can save you as much as $450 in electricity over its lifetime, so an old one could be costing you more than you realize.
  1. Don’t be tempted to set your dishwasher off when it’s half full – it uses just as much energy as a full load and you’ll end up running it twice as often.
  1. To help you budget for bills that fluctuate during the year, see whether you can set up an equal payment plan. Use your previous bills to calculate your annual spend, add 10% to cover price rises, then divide by 12 to give you the amount you should pay by direct debit to the utility company.

TRANSPORT

  1. Having a car will take a big chunk of your budget and can incur unexpected costs, so if you can manage without one it’s bound to save you money even if you use public transport every day.
  1. If you use public transport regularly, buy yourself a weekly or monthly season ticket and avoid taxis if possible.
  1. The kind of car you buy will determine your costs for fuel, maintenance and insurance, so choose wisely. A small eco model may not give you much street cred but your wallet will certainly thank you.
  1. You’d be surprised how much your driving style can affect your fuel consumption. Racing around town will mean you’re at the petrol station much more often than if you’re gentle on the pedals.
  1. Don’t skimp on car maintenance. This is another case where spending a bit of cash upfront can save you money further down the track, so make sure your oil and filters are changed regularly.
  1. Always compare insurance prices from other companies when yours is up for renewal. If you want to stick with your company, shop around and then go back to them to see if they’ll price match.

IN THE GARDEN

  1. Flowers are pretty and all, but they’re not very useful. By using your garden to grow some veggies, you’ll save money and get to eat fresh every time. Start with something that’s easy to grow and see how you get on.
  1. Find some timber in a recycling depot and use it to make a compost bin. You can use the compost for those veggies you’re growing and there’s the added benefit of reducing your waste.

SHOPPING

  1. Do you have a bit of a coffee habit? Buying just one or two a day can soon add up. Invest in a plunger so you can make your own for a fraction of the price.
  1. The same goes for lunch. Making your own takes a little time and organisation but if your aim is to save money, it’s worth the extra effort.
  1. Of course you are still allowed to enjoy yourself while watching the pennies. There are plenty of good quality cleanskin wines around, so give some a try and avoid paying inflated prices for big labels. When it comes to beer, have you tried brewing your own? An $18 kit can produce about 23 liters – that would cost around $100 to buy at the shop.
  1. Eat before you do your food shop. Shopping while hungry allows your stomach to lead you around the supermarket pointing out all the yummy things it wants, and you’ll end up buying more.
  1. If you find yourself easily drawn in by merchandising stands and special offers for things you don’t really need, try shopping online – you might find it easier to stick to your list. Having said that, if you do see a great deal on something that you KNOW you’ll use, now could be a good time to stock up in bulk.
  1. You do make a list, don’t you? This is a really easy way to keep yourself focused on the things you need rather than the things the shop wants you to buy.
  1. Always check to make sure you’re being charged the correct price, especially when a product is advertised at a discounted rate. If your receipt doesn’t match the advertised price, query it with the shop.
  1. It’s easy to get carried away when the sales are on. One way to satisfy that craving to spend (and still be able to justify it to yourself) is to stock up early on birthday and Christmas presents for the coming year.
  1. Let’s talk about gym memberships. If you have one that you actually use regularly, you can skip this point. But if, like so many others, you always convince yourself that next month will be the month you truly commit to it, do yourself a favour – cancel your membership and take up something that’s free like walking, running or cycling (and no, you don’t need to splash out on heaps of fancy new gear before you start).
  1. After all this hard work saving money, you deserve a break! The internet can be a great source for last-minute deals, but you’ll get better prices on flights if you book in advance. Fly mid-week to save money, and check the price of booking a package versus booking it all separately.