Smart spending strategies to combat rising costs

With rising inflation squeezing our wallets, increasing interest rates putting a strain on mortgage repayments and average grocery bill climbing each week, you may find you need to hold onto your purse strings a bit tighter than you used to.

But don't worry, there are steps you can take to regain control of your finances. Financial Planner Martin Gee from CSC shares his top tips for keeping your spending habits under control.

These tips can be tailored to your unique situation and spending patterns. While we've included some illustrative examples to help understand the tips, the exact amount you save will vary depending on your current spending habits.

1. Pack your own lunch

   Ditch the daily cafe pitstop and its $10 to $15 price tag. Preparing your lunch at home with affordable ingredients can save you a significant amount. Think of it as an average $200 monthly boost to your budget—that's a nice chunk of change!

2. Become a spending detective

   Scrutinise your bank statements. Analyse where your money goes and categorize expenses into "needs" and "wants." You might be surprised by hidden subscriptions, forgotten recurring fees, or rising insurance premiums. Trim the unnecessary expenses and redirect those funds towards your savings or other expenses.

3. Teamwork makes the dream work

   Talk openly with your family or partner about reducing spending. Explore options like replacing car trips with public transport, enjoying movie nights in with homemade snacks, or trying out free outdoor activities (indoors, if you are in Canberra). Collaborative budgeting can lead to unexpected savings and strengthen your financial bond.

4. Plan your weekly groceries

   Planning meals for the week and sticking to a shopping list are powerful tools. This helps avoid impulse purchases and food waste. Utilise your freezer to its full potential and minimise mid-week shopping trips. If you are too tempted to pick up treats or items that are not on the list when walking round the aisles, try shopping online for groceries.

5. Tame your debt

   Consider renegotiating your credit card interest rates or mortgage repayments with your current provider. Explore the option of locking in a fixed, affordable rate or shop around for a provider with a lower rate on offer. Remember to thoroughly research all options before making any significant changes. Consider getting personalised financial advice for major financial decisions.

6. Review your insurance

   Even though insurance premiums may be increasing, resist the urge to drop crucial coverage. Assess your current level of cover and confirm it meets your requirements. Consult with your insurance provider to explore the options you may have available to you—raising the excess payable, reducing the cover, changing insurer, including your insurance inside superannuation.

Taking control of your finances during challenging times is empowering. By implementing these smart spending strategies, you can navigate economic fluctuations and stay on track towards your financial goals.