Is your budget too tight? These simple tips will help you loosen the purse strings
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Some Aussies may be happy about the idea of house prices going down, but rising interest rates mean that homeowners could see their assets lose value while their mortgage payments keep going up.
And people who bought recently, when the market was at its highest likely have the most left to pay on their loans.
This means that when interest rates go up, they will feel it the most…
CoreLogic, a company that analyses real estate data, said on Monday that the median house price in most capital cities is falling steadily and is expected to continue falling.
In the past month, house and unit prices in Hobart fell by 1.5%, and the same is happening in Sydney and Melbourne.
CoreLogic says that the drop is the same as what happened during the Global Financial Crisis of 2008 and the recession of the 1980s.
Australia's housing market is experiencing its steepest decline since the global financial crisis. Credit: ABC News.
Effie Zahos, a financial consultant and the editor-at-large for Canstar, offers seven simple suggestions for homeowners wishing to streamline their spending.
Start with the mortgage.
The best way to stay on top of your mortgage is to keep a close eye on it.
If your loan has rolled over or is very close to being paid off, it is in your best interest to research whether or not you can find a better offer elsewhere.
According to Ms Zahos, it's important to always ask yourself: 'Am I still on a good deal?'
'The cheapest [variable rate] on Canstar's database is 2.49 per cent - if the average is 3.85, you'll find an automatic saving of around $445 per month on a $600,000 loan,' she added.
Ditch Netflix.
How many different streaming services does one person (or one family) really need?
According to Canstar Blue, the typical Aussie family subscribes to between three and four different streaming video services. By giving up just one of them, they could save enough money for about 30 cups of coffee every year.
Ms Zahos says that if you want to try a streaming service but don't want to commit yet, you can always take advantage of the free trial period. It doesn't cost anything, so if you've already gotten what you want from it, just unsubscribe.
Grocery Specials.
Groceries are necessary, but it can be challenging to find good offers now that fresh produce prices have increased.
Ms Zahos suggests using comparison apps to help you pick which supermarket has the best deals. We've written an article about this before so feel free to check it out!
Aside from using comparison apps, the finance guru also suggests using filters when shopping online. 'Use filters to sort the items by unit pricing,' she said, adding: 'Sometimes, you think big is better, but not necessarily.'
Sell your stuff.
Do you own a car that sits around collecting dust and costing you money in depreciation, insurance, and registration?
Selling stuff you don't use is a simple way to make money, and they are almost surely worth more now than they will be in a year.
According to Ms Zahos, the second-hand economy is doing extremely well these days. 'Look around your house. I always say you should be able to find 10 items in your home you can sell,' she said.
It's easy to make money by selling things you no longer use. Credit: HuffPost.
Use your skills.
If you know someone who has a ute and is willing to lift heavy things, they could become a millionaire on Airtasker (well, not quite, but you get the idea).
Handymen, cleaners, lawn mowers, and removalists are all in demand these days. And in a competitive rental market, renting out a spare room in your home could also be an excellent source of passive income.
‘Fun’ money adds up.
Spending money on entertainment and luxuries is often one of the easiest types of spending to cut back on.
Small, one-time expenses like ordering takeaways, a session at the beauty salon, or a quick visit to retail stores such as Kmart quickly add up in a budget, so better watch out for these little things!
Ms Zahos says, 'Discretionary spending is the biggest killer when it comes to your budget. Little household bills collectively can have a big impact.'
Shop around.
When it comes to your monthly household expenses, such as insurance, internet, and phone contracts, are you getting the greatest price possible? If you take the time to find the best deals, you can free up money in your budget.
'Swapping and saving on your regular bills can bring you in about $600 a month - that's some much-needed money to be redirected to your home loan,' said Ms Zahos.
So what do you think of these tips, folks? Did you find them helpful?
If you know of any more tips and tricks to save money, please share them with us in the comments section below!
And people who bought recently, when the market was at its highest likely have the most left to pay on their loans.
This means that when interest rates go up, they will feel it the most…
CoreLogic, a company that analyses real estate data, said on Monday that the median house price in most capital cities is falling steadily and is expected to continue falling.
In the past month, house and unit prices in Hobart fell by 1.5%, and the same is happening in Sydney and Melbourne.
CoreLogic says that the drop is the same as what happened during the Global Financial Crisis of 2008 and the recession of the 1980s.
Australia's housing market is experiencing its steepest decline since the global financial crisis. Credit: ABC News.
Effie Zahos, a financial consultant and the editor-at-large for Canstar, offers seven simple suggestions for homeowners wishing to streamline their spending.
Start with the mortgage.
The best way to stay on top of your mortgage is to keep a close eye on it.
If your loan has rolled over or is very close to being paid off, it is in your best interest to research whether or not you can find a better offer elsewhere.
According to Ms Zahos, it's important to always ask yourself: 'Am I still on a good deal?'
'The cheapest [variable rate] on Canstar's database is 2.49 per cent - if the average is 3.85, you'll find an automatic saving of around $445 per month on a $600,000 loan,' she added.
Ditch Netflix.
How many different streaming services does one person (or one family) really need?
According to Canstar Blue, the typical Aussie family subscribes to between three and four different streaming video services. By giving up just one of them, they could save enough money for about 30 cups of coffee every year.
Ms Zahos says that if you want to try a streaming service but don't want to commit yet, you can always take advantage of the free trial period. It doesn't cost anything, so if you've already gotten what you want from it, just unsubscribe.
Grocery Specials.
Groceries are necessary, but it can be challenging to find good offers now that fresh produce prices have increased.
Ms Zahos suggests using comparison apps to help you pick which supermarket has the best deals. We've written an article about this before so feel free to check it out!
Aside from using comparison apps, the finance guru also suggests using filters when shopping online. 'Use filters to sort the items by unit pricing,' she said, adding: 'Sometimes, you think big is better, but not necessarily.'
Sell your stuff.
Do you own a car that sits around collecting dust and costing you money in depreciation, insurance, and registration?
Selling stuff you don't use is a simple way to make money, and they are almost surely worth more now than they will be in a year.
According to Ms Zahos, the second-hand economy is doing extremely well these days. 'Look around your house. I always say you should be able to find 10 items in your home you can sell,' she said.
It's easy to make money by selling things you no longer use. Credit: HuffPost.
Use your skills.
If you know someone who has a ute and is willing to lift heavy things, they could become a millionaire on Airtasker (well, not quite, but you get the idea).
Handymen, cleaners, lawn mowers, and removalists are all in demand these days. And in a competitive rental market, renting out a spare room in your home could also be an excellent source of passive income.
‘Fun’ money adds up.
Spending money on entertainment and luxuries is often one of the easiest types of spending to cut back on.
Small, one-time expenses like ordering takeaways, a session at the beauty salon, or a quick visit to retail stores such as Kmart quickly add up in a budget, so better watch out for these little things!
Ms Zahos says, 'Discretionary spending is the biggest killer when it comes to your budget. Little household bills collectively can have a big impact.'
Shop around.
When it comes to your monthly household expenses, such as insurance, internet, and phone contracts, are you getting the greatest price possible? If you take the time to find the best deals, you can free up money in your budget.
'Swapping and saving on your regular bills can bring you in about $600 a month - that's some much-needed money to be redirected to your home loan,' said Ms Zahos.
So what do you think of these tips, folks? Did you find them helpful?
If you know of any more tips and tricks to save money, please share them with us in the comments section below!
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