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How To Reduce Your Cost Of Living

03 Apr 2022

Are you trying to save, tackle an existing debt or simply have more funds after the bills are all paid? Spending less on the cost of living is always a win win.

How-To-Reduce-Your-Cost-Of-Living

By definition, the cost of living is quite literally the price we’re expected to pay to get by with just the essentials. In today’s world, these basics include how much you or your household needs to spend on average to cover things like food, housing, utilities, transport, clothing and healthcare expenses. 

When used in finance, politics and economics, an example of the cost of living is the amount of money it would cost to have a minimum standard of living in a particular city. Despite coming behind the likes of northern European powerhouses like Iceland, Switzerland and Norway, Australia comes in at #7 of the world’s most expensive countries to reside in, meaning that our cost of living certainly doesn’t come cheap. 

Although our nation does relatively well in terms of minimum wages, too many households are still under enormous financial pressure when it comes to making it through each week. Thankfully, the good news is that there are always a few lesser known tips and tricks when it comes to reducing your cost of living, spending less, and saving more. 

Six Ways To Cut Down On The Cost Of Living 

While having savings may feel like a pipe dream for many, ultimately it’s a means to protect yourself in more ways than one. Big ticket items like purchasing a car, getting married and home ownership require discipline and long term planning, so taking conscious steps to curb your cost of living expenses have a flow on effect that can benefit you for years to come – but where do you start with spending less?

Make A Budget – If you don’t know where your money is going, how do you hope to keep more of it in your pocket? For those who’ve never made a budget before, it can encourage you to “seal the gaps” where funds are running away from you. Try to view budgeting like running your household as if it were a business, carefully assessing both incoming and outgoing funds. 

Dine At Home – Dining out and snacking is one of the biggest offenders when it comes to breaking even the best budgets, but it can be avoided with some preplanning. Start meal prepping at the beginning of every week by writing out a grocery list and whip up tasty treats in advance. Not only will you reduce waste, but your bank account will thank you for it. 

Conduct A Spring Clean – While one traditionally wouldn’t think that undertaking a spring clean would equate to lowering the cost of living, the process might just help you generate some extra funds. View the process as a large-scale declutter, and sell off any trinkets, clothing or devices that you don’t need or use, while using the profits to start an emergency fund.

Get Out Of Debt – Consolidating your debts is one of the most straightforward ways to get on top of existing loans or debts, and ultimately lowering your interest rates. While one credit card stashed for emergencies isn’t going to make or break your chances of a loan approval, a large car loan or multiple miscellaneous debts might. 

Evaluate Housing – Regardless of whether you own your own home or rent someone else’s, a major component of tackling the cost of living is assessing whether where you live is too big of a burden to bear. If you’re spending a fortune on housing, get creative with a solution – rent out a spare room, downsize, or even move to a cheaper suburb if that’s an option on the table. 

Ask For More – Many Australians are hesitant to barter, negotiate or even haggle on both major and minor purchases when appropriate. However, once consumers shake the cultural norm of appearing “cheap”, negotiating on everything from a new car purchase to your insurance premium can wind up saving you thousands each year if you’re brave enough to try.  

One of the biggest savings myths that needs debunking is that one needs to earn serious dollars in order to afford putting some of it away for savings – and that just isn’t quite true. If it’s been awhile since you’ve taken the time to read over the fine print of your monthly bills linked to electricity, insurance or even your internet, there’s never been a more appropriate climate to do so. 

While you’re at it, don’t be afraid to negotiate with your current provider to secure a lower premium – at the end of the day, there’s nothing worse for them as a business than a customer jumping ship elsewhere. 

How To Save Money On Your Monthly Bills

Kyco is a member based buying group that ultimately aims to save Australians money on their energy, health and insurance bills. The more members we have, the more negotiating power we have to arrange low, long-term deals with service providers.

Kyco doesn’t play one provider off against another taking commissions of up to 30% like most comparison sites. Instead, we’re leveling the playing field with a low 3% capped commission. It’s free to become a member, and with no lock in contracts or unexpected price hikes, spending less on your annual bills has never been easier. 

If you’re one of the many consumers looking to cut down on the costs linked to your quarterly electricity bill, the good news is that it’s never been easier. To be amongst the first to revolutionise how much ordinary households should be paying for bills, join us today and help make the cost of living more sustainable for everyday Australians.