Opinion
Nine (almost) painless ways to slash your spending
Nicole Pedersen-McKinnon
Money contributorThat sound you collectively heard across the country last Tuesday was a sigh of relief.
For only the second time in 15 months, the Reserve Bank paused the rate-rise pain.
Making ‘salad jars’ for lunch is just one of Nicole Pedersen-McKinnon’s many money-saving tips.
And with mortgage holders (and renters) punch-drunk from 400 basis points of rises in what is now the harshest hike cycle ever, around the nation, Aussies are in cost-cutting overdrive.
So, here are my nine easier, more appealing ways to spend less.
1. Calculated “cocooning”. This was a concept conceived of in the credit crack-up: recreating a delectable restaurant or bar experience at home, made even better that now post-pandemic we can again invite real-life friends into our houses. Hello dinner parties where everyone contributes their hero dish and cocktail/mocktail nights where each person makes a magnificent budget beverage.
Most of us, post-COVID-renos, have nicer entertaining areas as well as comfy lounges and big-screen TVs. Add some store-bought popcorn, maybe a mattress on the floor, and you have all the ingredients for a bargain-basement ‘cinema experience’, too.
2. Brand breakups. Forget loyalty to your favourite macaroni or even moisturiser – now is the time to ditch loyalty and switch to products that may be cheap as well as cheerful. To reappropriate a slogan: You never know if you never go!
3. Outlet ambivalence. There is massive competition for your grocery custom and a huge bottom-line benefit from “buying into” it. Discount outlets are procuring far better products to secure your spend (check out Aldi’s exceptional cheese). Is it time to defect to a different store, or, for fresh produce, direct and discounted local markets?
4. Negotiation sensation. It’s time to forget the price tag you see on mostly everything – with our consumption curbed, retailers are vying hard for fewer dollars. Armed with rival products and price information, you have never been in a stronger position to cut the cost of whatever you need. And remember, bagging bargains gives you a (‘free’) dopamine hit!
5. Cashback clicking. For online purchases, fintech gives you the financial edge. Almost a dozen sites and apps act like the Uber of shopping, hooking you up with vendors for a slice of your payment pie.
Check if a store or service has signed up – if you want to get items faster, simply click and collect – before you transact. The cashback, which can take 90 days, might even cover the cost of Christmas.
6. Discounts galore. Think restaurants, tourist attractions and experiences – there is probably a 2-for-1 coupon to conserve your cash. Not just automobile clubs, but airlines, telcos and even health funds are doing discount deals with all kinds of outlets to get you feeling warm, fuzzy and faithful.
7. Medicare Levy Surcharge sidestep. Last column, I wrote how to outsmart the (increased) Medicare Levy Surcharge income threshold, to save perhaps $1500 this new tax year. If you are single and your income has crept above $93,000, or a couple on $186,000-plus, you need to act immediately – every day you delay buying hospital cover post-July 1 will cost you.
8. Health fund hacks. You can’t afford to let your health insurance languish anymore; you need to get back every dollar you can. In fact, there is a big opportunity for those who have extras as well as hospital cover: you could claim your entire cost.
‘Money back’ you may be missing includes gym membership (if you are a bit injured) and kids’ swimming lessons. And obstetrics is just one of the services for which you may be unnecessarily paying.
9. Salads in jars. Yep, this has become my favourite on-the-ground hack and expense attack. You invent a fiscally judicious but delicious flavour combination, pop this into a (portable) jar, and then pop it onto a plate at lunch. With wet ingredient at the bottom, you layer up your protein, legumes and at the top, (home-grown) greens. I’ve just shared my best recipes on Instagram.
I line up these budget, bottled ‘tip salads’ in the fridge – made my way, they keep three days – for each person to grab and go and I am making massive savings in not just money but time, which, as they say, is money.
Nicole Pedersen-McKinnon is the author of How to Get Mortgage-Free Like Me. Follow Nicole on Facebook, Twitter or Instagram.
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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