Cost of living: 8 quick ways to save money on your monthly bills 

Estimated reading time
 7 min

In this article

• The cost of living continues to put a strain on Aussies’ finances.
• How to cut spending on utilities and household bills with some simple tweaks. 
• We share 8 ways for you to cut costs and reduce the impact of cost hikes.

If you’re wondering how to keep up with bills when you’re feeling the pinch, or how you can meaningfully reduce living costs to combat the cost of living, this article’s for you.

Here you’ll find some bill-busting tips and tricks to help navigate your finances during times that feel tougher than ever. From asking for a better deal on your services to buying a heated clothes rack (yes, it’s a thing), there are lots of ways to bust that bill stress this year. Ready? Let's go.

The spenny situation

If your grocery receipts are enough to make you want to raid your parents’ pantry for dinner supplies, you’re in good company. 

According to the Australian Bureau of Statistics, living costs across all areas rose by between 3.3% and 6.5% in the last twelve months. And cost of living was the “top concern among Australians” – ahead of healthcare, climate change and the Covid-19 pandemic, according to research from Nature. 

Figures from the report show 79% of consumers are taking advantage of specials and promotions when shopping. They’re also eating out less (73%) and finding lower-price substitutes where possible (71%) and more than half of consumers in the report were following a budget (61%) - our kind of people. 

Wherever you sit, everyone can use a fresh perspective on how to save a little more on our bills.

8 ways to reduce your bills and living costs

1. Buy a heated clothes rack

While you may have to wait a bit longer for your clothes to dry, heated clothes racks are often more energy efficient than a dryer and they protect your clothes – meaning you can save money on your electricity bill and make your clothes last longer (look at me go, mum!). Plus, they’re kind of cool, in that futuristic ‘I’m so modern’ kind of way, right?

Want to go one step further? Learn how to use all your appliances in a more energy efficient way or what to look for when buying new appliances so your energy consumption stays under control.

2. Change your sim or phone plan

You might’ve had your current phone plan for a while, but when did you last think about your mobile usage and what kind of plan might suit you best? Why not see if you can find a better deal with an alternative provider? Or by finding a different type of deal, like pre-paid or data-focused?

You can also save on data by strictly using WIFI when streaming, downloading or making video calls. So, if you’ve got internet at home (or work), maybe you could choose a small data package, or get in on a family deal.

3. Explore your network for deals and offers

From loved ones who have jobs with friends and family discounts to your health insurance provider, your contact list and inbox is brimming with potential savings opportunities. First reach out to the IRL people in your life and see if they have any affiliations with businesses who could give you a discount (and be sure to check your own workplace too – a swap will always be looked upon favourably).

Next check out the businesses you have long-term relationships with – think your health insurance, phone provider, rewards clubs, and even your bank. Many have special deals exclusive to their existing customers, from two-for-one deals and discounts, to gift cards and points systems. They’re often under utilised so make the most of it!

Take it even further by joining a cashback shopping program. This will allow you to get money back when you shop online simply by going through their app. Use it as your default and you’ll save a little bit with every shop and it can build up over time. Just be sure to use it when you really need to buy something, not to justify spending money you don’t have right now.

4. Ask your providers for a better deal

Even if you don’t have a personal connection, a quick call to your current service provider to let them know you’re ending your plan for a cheaper deal elsewhere can prompt a better offer!

From your phone bill to your water, gas or electricity – there’s (often) a better deal hiding in the shadows of the competitor landscape, and while it may feel wrong to switch you’re often missing out on those sweet new customer deals. A great way to negotiate your price is to ask other people what they pay or compare with other retailers. It’s always easier to negotiate when you’ve got something to stack up against – something you can use as a bargaining chip to save some money. Remember, a little research goes a long way. 

Use the government’s ‘Switch to Save’ search tool to find the best energy deals in every state.

5. Nix some of those extras

We all love a little buffer to make us feel prepared. But do you really need all those insurance extras? Is your internet quota higher than you’ll ever use? Review your policies and consider what’s really benefiting you. For example, if you’re finished having children but still have obstetric cover, ditch this part of the policy. These little details can do a lot of the groundwork when it comes to finding some savings. Don’t be shy to talk to your provider about what you want and see if they can tailor your plan to the things you actually need.

While you’re at it, take a look at your car insurance too. If you’re an excellent driver, or you don’t drive often, you might consider upping your excess so that you pay a lower rate!

6. Make use of government rebates

Did you know the government *sometimes* gives out money to help with the cost of everyday expenses, like your utilities? Keep an eye out for electricity rebates or new schemes that may pop up in your state by checking your local government website for any current discounts you may qualify for.

7. Cleanse your subscriptions

There’s no better time than now to cleanse your subscription spread. Whether it’s some obscure news app you’ve never used or that ninth streaming platform you’ve forgotten about, take a look at what you could say bye to (and say hello to lower costs).

Make the job more fun by using our goals setter worksheet (PDF) to see just how much your savings can get you!

8. Bundle up your bills

Alternatively, if you’re not quite ready to give up on all your subscriptions or expenses (and fair enough), sometimes phone, media or utility providers offer deals when you bundle services. See if you can put any of your eggs in the same basket for a better price!

Our savings booster calculator can help you to tally the small amounts you’re saving and you can  see just how well your hard work will pay off in the long term!
 

Brain hack

Ever heard of the ‘status quo bias? It explains why we tend to prefer to leave things the way they are, because they feel familiar and therefore safe. Change can be good. But this bias might just get in the way of leaping into savings. To overcome the status quo, remember that the only way to know for sure if you can be getting something better is to do your research. Keep this in mind if you feel nervous about reviewing and negotiating your bill situation so you can get the best deal you can! 

At the end of the day, bills are always going to be there – but just like anything that’s with you for life, it’s worth getting to know them a little better and making sure you can pay them in a way that’s sustainable for you. So, get savvy and start talking to your providers about lowering that bill – remember, you’re the customer and they’re lucky to have you!

If you’re looking for some other handy savings tips, check out this article on 5 easy lunchbox recipes for $12 and under. Or this piece on how habit stacking can help you achieve your financial goals.