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Living in Australia for the past six years, I’ve witnessed firsthand the steady rise in the cost of living. From groceries to utilities, expenses seem to be on an upward trajectory. However, through careful planning and smart choices, I’ve managed to implement strategies that have saved me thousands annually. In this post, I’ll share five practical money-saving hacks tailored for life in Australia.

1. Maximize Grocery Savings with Loyalty Programs

Groceries often constitute a significant portion of household expenses. While major supermarkets like Coles and Woolworths dominate the market, many shoppers overlook the benefits of their loyalty programs. Both Coles(via Flybuy) and Woolworths(Everyday Rewards) has free loyalty program which has lot of benefits. These provide $10 credit for every 2000 points. These points are easy to collect so make sure you are enrolled. If you want something extra, we also have below paid options with much more benefits.

• Coles Plus Saver: For $7/month, members receive 2x Flybuys points on in-store purchases and a 10% discount on one shop per month, up to $50 off.
• Everyday Extra: Woolworths offers this subscription for $7/month, providing 10% off one shop per month and 2x Everyday Rewards points on eligible purchases.

By strategically planning your shopping trips and utilizing these programs, you can achieve substantial savings over time.

2. Reduce Utility Bills with Energy Made Easy

Utility costs, particularly electricity and gas, can strain household budgets. Fortunately, the Australian Government offers a free comparison tool:

• Energy Made Easy: This platform allows households and small businesses in NSW, QLD, SA, TAS, and the ACT to compare energy plans and find the most cost-effective options.

Regularly reviewing and switching to better energy deals can lead to significant annual savings. This alos applied to you Internet provider who regularaly come out with offers for customers switching from their competitors, make sure to make the best of these options too. An easy comparison of these rates can be found at WhistleOut.

3. Leverage Offset Accounts for Mortgage Savings

For homeowners, offset accounts can be a powerful tool to reduce mortgage interest:

• Offset Accounts: By linking a savings or transaction account to your mortgage, the balance in the offset account reduces the principal on which interest is calculated. For instance, a $100,000 balance in an offset account against a $500,000 mortgage means you only pay interest on $400,000.

This strategy not only decreases interest payments but also accelerates loan repayment.

4. Optimize Health Insurance Costs

While Medicare covers many health services, private health insurance can offer additional benefits and potential tax savings:

• Medicare Levy Surcharge: Individuals earning above a certain threshold without private hospital cover may incur this surcharge.This is over the 2% we already pay as Medicare Levy. This surcharge can be avoided by picking up a private insurance with hospital benefit. In most cases that is a better way to make most of you income.
• Extras Cover: Private insurance has two components, a hospital cover and Extras(optional). Extras covers your eyes and dental issues which are recommended to be checked annually.Consider activating extras cover only when needed, such as before planned dental or optical appointments, to avoid paying for unused services. Do consider the cooling off period for these services when deciding when to enroll, and when to cancel.

Tailoring your health insurance to your specific needs can lead to considerable savings.

5. Utilize Credit Card Rewards and Discounted Gift Cards

When used responsibly, credit cards can offer valuable rewards:

• Credit Card Rewards: Opt for cards that provide cashback, points, or other benefits. Ensure you pay off the balance in full each month to avoid interest charges. When you have a home loan it usually comes with an annual package and a free high rewards credit card. MAke the most of this package by applying for same for it’s many benefits.
• Discounted Gift Cards: Platforms like Macquarie Bank offer discounted gift cards for major retailers, providing immediate savings on purchases. We often also have deals where some of gift cards are discounted by 10 to 20%. These can then be used at many major retailers. MAke the most of your credit card limit by buying these for your future retail purchases.

Additionally, websites like OzBargain regularly feature deals and discounts across various categories, helping you save on everyday expenses.

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Conclusion

Implementing these strategies can lead to significant annual savings, enhancing your financial well-being. Remember, the key is consistency and staying informed about available deals and programs.

Planning on settling in UK, US or Australia or already living in these places? Do check out our podcast on various topics around Desi Diaspora here

Also check out below video on the topic, and do subscribe to our channel for more such videos.

Note: The information provided is based on personal experience and publicly available resources. Always consult with financial professionals for personalized advice.