The cost of living is the amount of money we need to maintain a lifestyle in a particular time period. The factors contributing to this may include your family structure, location, way of living, and the economy.
At present, the economy is not cooperating. Our Australian seniors who have limited savings and relying on super and the Aged pension are very much affected. Even the $250 cash boost to help with cost of living pressures was not enough.
It’s obvious that we have to think of other ways to keep ahead of inflation, so why not begin with these household expenses: housing, food, and transport. Here are some tips you can try to help reduce your cost of living.
HOUSING (Cost of living)
Mortgage
If you have a mortgage, you have the option to negotiate your housing costs. Here’s what you can do:
- Negotiate with your loan provider. Ask your current home loan provider for a lower interest rate.
- Extend your loan term. This is not for everyone. However, if you’re struggling to meet your repayments, consider asking your provider to extend the term of your mortgage to make it more manageable.
- Change loan providers. Prepare yourself to refinance to get a better deal somewhere else.
- Rent out part of your house. You could rent out a space in your house such as a garage or a spare bedroom to help meet your ongoing repayments.
Utilities
After you’re done with your mortgage payment, you’ve still got to pay your utilities such as water and energy bills. Cutting down your use is the surefire way to lower your bills.
FOOD (Cost of living)
If you’re thinking of other ways to possibly reduce your cost of living, save money on your weekly food shopping. Other than buying generic brands and bulk buying food when it’s on special, here are some helpful tips:
- Plan your meals. Start your meal planning for each week. This way you know exactly what ingredients you need to make your food so everything will be used. Saving you money on your groceries.
- Use apps. SmartCart and Frugl apps can help you grocery shopping and pay for less. They can also make your shopping process more efficient.
- Shop with supermarket gift cards. Buy up when you shop with a gift card in your favourite supermarket. You can save 5 to 10 percent off your grocery bill.
- Reward programs. Some of these reward programs can help you save on groceries as well as make the most of vouchers and discounts off petrol.
Eat out
Believe it or not, you could actually save money from eating out every once in a while. Here’s how:
- Search for discounts. LivingSocial and The Fork will help you look where the deals are.
- Become a club and pub member. As a member, it can result in saving a bit off your food bills and reduce your cost of living.
- Eat early. Some restaurants offer early-bird discounts. So if you don’t mind eating early, book your table for before 6pm.
- Midweek eat out. Many places offer midweek discounts, so make sure to save your night out for Monday-Thursday.
- Make use of government vouchers. If you’re in NSW, a lot of Dine and Discover vouchers are being offered. Find a place that takes these vouchers and save money on your next meal.
TRANSPORT (Cost of living)
Owning a car can be expensive. So here are some tips on lowering your transport cost to effectively reduce your cost of living.
- Public transport. Using an app such as TripView NSW or PTV VIC can help you plan your journey.
- Carpooling. Share rides with colleagues.
- Take a walk or bike ride instead. This will help reduce your petrol and car running costs as well as be beneficial to your health.
- Change cars. Changing your car for a smaller and more efficient model or an electric vehicle can reduce your ongoing running costs.
- Use petrol apps. Search for the cheapest fuel in your area using petrol apps.
- Vouchers. Bring your supermarket vouchers so you can get 4-6c a litre off your petrol.
Let the ASAG Reverse Mortgage help you
Here at ASAG, we hope that our equity release solutions can help improve the lifestyle of Australian seniors by unlocking the wealth in their home. And one of the most popular solutions we offer is our reverse mortgage.
One of the benefits of using the ASAG Reverse Mortgage for your objectives as you retire is that there’s no need to make ongoing payments. However, you have the option to voluntarily make repayments at any time without penalty. The fund you receive can be used for any purpose you see fit, including Day-to-Day Expenses as well as Vehicle Finance, among other things.
The ASAG team is happy to assist you with further details on how our reverse mortgage works. Our lines are open on 1300 002 724 and at info@asagfirst.com.au for you to call or send enquiries about our equity release solutions.
You can also get started by using our free tool below to assess your available equity.