Slash your electricity bill by $110 every month with simple ‘set and forget’ trick
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As the cost of living rises, Australians look for clever ways to save money without overhauling their entire lifestyle.
One of the most pressing concerns for many is the ever-increasing electricity bill.
It's a constant source of financial stress, but there is a straightforward solution that could help ease this burden.
Remember the good old days when we would deposit our spare change into a piggy bank and watch our savings grow?
This age-old concept has been given a digital makeover, and it could be the answer to reducing those pesky electricity bills.
Enter the world of 'round-up' savings platforms, a modern twist on the traditional coin jar.
These digital platforms and apps, such as the innovative Cents2Bills, are designed to help you save money effortlessly.
Co-founder Jason Gram explained how it worked.
Every time you make a transaction, the amount is rounded up to the nearest dollar, with the difference transferred into a separate savings account.
‘It’s a set-and-forget model where you just let it go and see those little savings add up,’ he said.
‘Think of how many times you tap your card. It’s also the direct debits that are coming out [of your account], so Netflix, phone bills, streaming services.’
‘You might have three or four transactions every single day, and some are 50 cents, some are 20 cents, and some are 90 cents. In the end, it all adds up.’
On average, users of these round-up services save between $70 and $110 per month, which they can then allocate to their electricity bills.
Electricity is one of Australians' most common stressors, and in Finder's Consumer Sentiment Tracker, a quarter of Aussies cited their energy bill as a top financial concern.
Despite some regulatory efforts to reduce energy costs, such as the default market offers that took effect on 1 July, many Australians still face price hikes on their electricity.
This is because most households are on market offers, which are not regulated and can be subject to increases at the discretion of the retailers.
‘Default offers are regulated, but at the end of the day with market offers, it’s really up to the retailers to decide,’ Finder utilities expert Mariam Gabaji said.
The beauty of the round-up approach is that it allows you to chip away at your energy bills daily, softening the blow of an extensive quarterly or monthly bill.
And it's not just Cents2Bills that offers this service.
Other platforms like Raiz invest your round-up savings, with more than $1.7 million being invested weekly through their rounding feature.
Additionally, several Australian banks have introduced app round-up features, allowing customers to save rounded amounts and potentially earn interest.
Cents2Bills also offers the added benefit of cashback opportunities, which can help pay off a designated bill.
However, unlike the bank options, you won't earn interest on these savings.
In related news, Centrelink recipients are eligible for an automatic rebate on their electricity bills, with the amount varying by state.
Services Australia will send letters to recipients explaining how to consent to sharing their details with electricity retailers for automatic payment. Learn more about this update here.
How have they impacted your ability to manage electricity bills or other expenses? Share your stories and tips in the comments below.
One of the most pressing concerns for many is the ever-increasing electricity bill.
It's a constant source of financial stress, but there is a straightforward solution that could help ease this burden.
Remember the good old days when we would deposit our spare change into a piggy bank and watch our savings grow?
This age-old concept has been given a digital makeover, and it could be the answer to reducing those pesky electricity bills.
Electricity bills stress Australians, but 'round up' savings can help ease the burden. Credit: Shutterstock
Enter the world of 'round-up' savings platforms, a modern twist on the traditional coin jar.
These digital platforms and apps, such as the innovative Cents2Bills, are designed to help you save money effortlessly.
Co-founder Jason Gram explained how it worked.
Every time you make a transaction, the amount is rounded up to the nearest dollar, with the difference transferred into a separate savings account.
‘It’s a set-and-forget model where you just let it go and see those little savings add up,’ he said.
‘Think of how many times you tap your card. It’s also the direct debits that are coming out [of your account], so Netflix, phone bills, streaming services.’
‘You might have three or four transactions every single day, and some are 50 cents, some are 20 cents, and some are 90 cents. In the end, it all adds up.’
On average, users of these round-up services save between $70 and $110 per month, which they can then allocate to their electricity bills.
Electricity is one of Australians' most common stressors, and in Finder's Consumer Sentiment Tracker, a quarter of Aussies cited their energy bill as a top financial concern.
Despite some regulatory efforts to reduce energy costs, such as the default market offers that took effect on 1 July, many Australians still face price hikes on their electricity.
This is because most households are on market offers, which are not regulated and can be subject to increases at the discretion of the retailers.
‘Default offers are regulated, but at the end of the day with market offers, it’s really up to the retailers to decide,’ Finder utilities expert Mariam Gabaji said.
The beauty of the round-up approach is that it allows you to chip away at your energy bills daily, softening the blow of an extensive quarterly or monthly bill.
And it's not just Cents2Bills that offers this service.
Other platforms like Raiz invest your round-up savings, with more than $1.7 million being invested weekly through their rounding feature.
Additionally, several Australian banks have introduced app round-up features, allowing customers to save rounded amounts and potentially earn interest.
Cents2Bills also offers the added benefit of cashback opportunities, which can help pay off a designated bill.
However, unlike the bank options, you won't earn interest on these savings.
In related news, Centrelink recipients are eligible for an automatic rebate on their electricity bills, with the amount varying by state.
Services Australia will send letters to recipients explaining how to consent to sharing their details with electricity retailers for automatic payment. Learn more about this update here.
