How to Reduce Your Cost of Living

stretch out your budget by reducing your cost of living.

With the increasing cost of living, many New Zealanders are feeling the pinch in household budgets. Check out these simple money-saving tips to help you reduce expenses and stretch your budget further.

Check your insurance policies

Regularly reviewing your insurance policies helps save money and ensures appropriate coverage. By comparing and adjusting coverage, you can save money on your insurance policies. If you find a better quote, ask your current insurer if they can match the offer or provide a better deal.

Take action today: Get online quotes from at least three different providers for each insurance type, comparing similar coverage levels and deductibles. Assess if your current coverage suits your needs, consider bundling multiple policies for extra discounts, and negotiate with your current provider for a better deal.

Change bank accounts for better deals and features

Switching bank accounts can save you money in a variety of ways. By researching and comparing different bank accounts, you can find options with lower fees, competitive interest rates, and useful features that suit your financial habits.

For example, some banks offer fee-free transactions, higher interest rates on savings accounts, cashback rewards, or no monthly maintenance fees. These features can help you save money on transaction fees, grow your savings faster, and even earn rewards on everyday spending.

Take action: Compare savings accounts to see how they stack up against your current bank concerning fees, interest rates and bonus features.

Review your credit cards, consumer credit, and Buy Now Pay Later Options

Ensure your credit cards, consumer credit, and Buy Now Pay Later (BNPL) options align with your financial goals. Consolidate high-interest debts or consider balance transfer offers to reduce your interest payments. Regarding BNPL services, it’s essential to make the most of them by understanding their terms and conditions and using them responsibly.

Take action: Make a list of your current credit cards, loans, and BNPL accounts, along with their interest rates and fees. Identify potential balance transfer offers or debt consolidation options to save on interest costs. For BNPL services, ensure you’re aware of their payment schedules, and set reminders to make payments on time to avoid late fees and maintain a healthy credit score.

Refinance your mortgage for better rates

Refinancing your mortgage can lead to substantial savings by securing a lower interest rate or changing loan terms.

Take action today: Contact a mortgage broker or your current lender to discuss potential refinancing options and get quotes for comparison.

Cut energy bills with simple habits

Adopt simple energy-saving habits to reduce energy bills without investing in costly upgrades.

Take action: Follow easy steps like turning off lights and electronics, using energy-saving settings, sealing gaps, and adjusting your thermostat.

Give meal kit delivery services a try

Save on takeaway and cut food waste with meal kit delivery services like My Food Bag. Meal kit services can save you money by delivering pre-portioned ingredients and recipes to your door.

Take action: Try a discounted offer from a meal delivery service like My Food Bag or Checkout Bargain Box

Reduce transportation costs

Save money on transportation by carpooling, using public transport, or cycling to work. If you choose to cycle or walk to the bus and train you’ll fit more physical activity into your day too — bonus!

Take action: Plan your commute using public transport or carpooling options. Arrange to carpool or familiarise yourself with local bus and train schedules.

Be a savvy shopper

Take advantage of coupons, sales, and cashback apps to save money on everyday purchases.

Take action: Download cashback apps, sign up for store loyalty programmes, and bookmark coupon websites for your next shopping trip.

Embrace the “No-Spend Weekend” challenge

Save money by planning and enjoying a weekend without spending money on entertainment, dining out, or shopping.

Take action: Plan a no-spend weekend with free activities like hiking, picnicking, movie nights, or exploring local parks.

Host a clothing swap party to refresh your wardrobe

Save money on clothes and accessories by organising a clothing swap party with friends, family, or neighbours.

Take action: Organise a clothing swap party, inviting those interested in exchanging gently worn items. Set guidelines, such as a specific number of items per person, and enjoy a fun, cost-effective wardrobe update!