Many Australian households are feeling the pressure of rising everyday costs. While interest rates are starting to ease, the cost of living remains high. Finding creative ways to adapt to a tough economy is more important than ever. From groceries and petrol to housing and utility bills, here’s a closer look at what’s driving the cost of living, and some simple tips to help households save money and make the budget go further.

Housing costs

Housing is the biggest cost for most Australian households. Whether you’re renting or paying off a mortgage, it takes up a large chunk of your budget.

When a household spends more than 30% of its income on housing, it’s considered to be in “housing stress”. In 2021, over 640,000 Australian households were experiencing housing stress, and that number has continued to grow.

Rising property prices, higher rents, slow wage growth and an overall increase in living costs are making it harder for many Australians to keep up.

Smart ways to save at home

• Review your mortgage: Speak to a mortgage broker about refinancing to switch to a lower interest rate.
• Rent out a spare room: If you’ve got the space, consider taking in a boarder or offering short-term stays through platforms like Airbnb.
• Cut energy use: Swap to energy-efficient appliances, turn off lights and devices when not in use, and use fans instead of air con.
• Shop around for insurance: Review your home and contents insurance annually to find a better deal or more suitable cover.
• Claim what you can: If you work from home, you may be able to claim part of your internet, electricity and housing expenses at tax time.

Transport costs

For those who rely on a car to get around, transport costs can quickly add up. From rising fuel prices and expensive car insurance to registration, servicing, parking and tolls, owning a car isn’t cheap.

While public transport may be an option in some areas, many Australians don’t have that choice and end up spending a big part of their income on getting from A to B.

Smart ways to save on transport:

• Use public transport if possible: It’s usually cheaper than driving and parking in the city and often faster during peak times.
• Carpool: Share school runs or commutes to work with neighbours or colleagues to save on petrol.
• Plan your trips: Combine daily errands into one weekly drive to avoid unnecessary trips and save fuel.
• Look for cheaper fuel: Use apps like FuelCheck or PetrolSpy to find the cheapest petrol stations in your area.
• Maintain your vehicle: Regular servicing keeps your car running efficiently and prevents costly repairs later on.
• Review insurance annually: Get quotes and consider switching providers to get better value for money.

Food and household costs

Since 2021, food prices have risen sharply, with some food items now significantly more expensive. Families are making sacrifices on nutrition, cutting back on quality and variety simply to put food on the table.

Planning meals, shopping smarter, reducing food waste and keeping an eye on utility bills can help stretch your budget further.

Smart ways to save on household expenses

• Plan your meals: Create a weekly menu and only buy what you need to avoid food waste and impulse purchases.
• Shop smarter: Buy in bulk when items are on special, choose home-brand products, and compare prices across stores.
• Cook at home: Reduce takeaways and eating out by batch-cooking and freezing meals for convenience.
• Buy seasonal produce: Fruits and veggies in season are usually fresher and cheaper.
• Shop local: Buying from local butchers, vegetable stores, and smaller, specialty stores can sometimes be better value than buying from large supermarkets.
• Grow your own: If you have space, start a small veggie garden or grow herbs – it all helps!
• Review utility bills: Don’t get caught paying loyalty tax! Check if you’re getting the best deal on gas, electricity and internet, and switch providers to save.

Take control of your budget

Managing your money doesn’t have to feel overwhelming. With a few smart changes, it’s possible to make the budget go further and reduce financial stress. If you need help finding ways to save on your home loan or insurance, talk to the team at Mortgage Express. We’re here to help you make informed financial decisions.

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. A Disclosure Statement is available on request and free of charge.

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