7 ways to save more money and beat the rising cost of living
New Zealand's inflation rate has reached 7.3%, the highest level in 32 years, according to the most recent data from Stats NZ.
With prices rising for many goods and services, it’s never been more important to economise. So here are seven things you can do to save money without seriously affecting your quality of life:
- Track your expenses. Read your bank and credit card statements, to find out how much non-essential spending you’re doing, and on what. You might be shocked by the results – a lot of people are. This will help you identify areas where you could reduce spending without much effort. If you save $100 per month, that’s $1200 per year.
- Bring your lunch to work. A home-cooked lunch might cost you $3, compared to a cafe meal that might cost $15. That could save you $60 per week or $2,880 over the course of a 48-week work year.
- Use comparison websites. If you shop around, there’s a good chance you could find electricity, internet, phone and insurance plans that are similar to what you’re already on, but cheaper. A collective saving of $80 per month would translate to $960 per year.
- Cancel unnecessary subscriptions. If you have a subscription plan you regularly use, it’s probably giving you value for money. But if you have a plan you rarely use – whether for TV, food or fitness – it’s probably a waste of money. Cancelling subscriptions could be an easy way to save $50 per month or $600 per year.
- Unsubscribe from marketing emails. While you’re cancelling things, it might be a good idea to unsubscribe from all those tempting ecommerce emails you receive, so you make fewer impulse purchases. That could help you save $100 per month or $1200 per year.
- Holiday in NZ. No one could blame you for wanting to take advantage of the reopened border and fly overseas. But what if, just this once, you spent $2000 exploring New Zealand’s incredible local attractions rather than $5000 on an overseas adventure?
- Refinance to a lower-rate loan. If it’s been at least two years since you took out your mortgage, there’s a good chance you could find a comparable home loan at a lower interest rate. Refinancing could potentially save you tens of thousands of dollars over the life of your loan.
If you’d like to refinance to a lower-rate home loan, I can compare lenders and loans on your behalf. Get in touch to discuss your options.
Tuesday 26 July, 2022
