According to many financial commentators, it is possible to cut spending and reduce costs by taking a good hard look at your budget and finding tangible ways to make savings.
Financial advisors Justine Davies and Bruce Brammall recommend reviewing interest rates if you have a mortgage. In the current economic climate many lenders are offering discounts and even waiving the application fee. Davies says that on a $300,000 mortgage, a 0.5 per cent reduction in interest rate could save you almost $60,000 in interest over the lifetime of a 25 year loan.
Both Davies and Brammall note that food and transport are some of the biggest costs after a mortgage. Food and drinks (excluding alcohol) can cost on average between $10,700 and $14,500 per annum. Davies suggests having a shopping list when visiting a supermarket and planning meals in advance to reduce impulse buying and save you money on groceries. Finally, doing a little bit of homework and shopping around for car insurance deals, alongside using public transport intermittently, will all contribute to significant household budget savings.