Did you know that your landline could be costing you over $800 a year? No matter how careful you are with your money, there may still be a few ways to save on your monthly outgoings.
David Simon, Financial Advisor, Westpac, knows that every dollar counts and highlights four ways to give yourself a pay rise, simply by checking your outgoings. You could save by:
- Cancelling a landline phone – this could save around $840 a year.
- Asking yourself if you really need a second car. Owning a second car can eat up thousands of dollars a year, calculations recently produced by the RACQ (April 2013) confirmed the average cost to run a medium-size car, such as a Toyota Camry is over $11,000 per annum, post tax.
- Review and, where possible, refinance your debt. According to the Westpac home loan calculator, shifting your minimum repayments from monthly to fortnightly (paying half the monthly payment fortnightly) could save almost $75,000 in interest expenses and reduce the payment period by five and a half years (based on a $300,000 loan with an interest rate of 5.98 per cent over 30 years).
- Gas and electricity prices have risen substantially more than the rate of CPI over the last five years. Simple changes, such as washing clothes in cold water rather than hot, getting rid of the second fridge, using a clothesline instead of an electric dryer and switching off game consoles can collectively save over $500 per annum.
Of course, there are plenty of other ways we can waste money. For more tips on how to review you monthly spend, read Avoid the hidden costs.