With household expenses and the cost of living at the heart of the federal budget, 9news.com.au and Joel Gibson are helping Australian families save. Kylie and her family work hard, save diligently and survive on a strict budget. However, the Perth mother and grandmother, like many Australians, often finds themselves in a bind when it comes to unexpected bills. Kylie told 9news.com.au that despite all their efforts to cut back on spending elsewhere, the family’s medical bills often eat into their weekly budget and savings.
Kelly and her family budget carefully, but there’s still room for savings. (Provided) Groceries are their second-biggest weekly expense, behind only the mortgage, which can be higher than average due to Kelly’s son’s special dietary needs. “Our youngest has celiac disease, so most of our meals are gluten-free because he’s so sensitive, but we have a separate pot and pan for cooking gluten-containing foods because of the cost,” Kelly says. “We also sometimes go to the Free Food Store and pick up a few items that are on sale that week. We’re pretty frugal and make big meals with veggies.”
finance expert Joel Gibson helps a Perth family save on their weekly bills. (Supplied) Kylie rarely eats out either, revealing the family spends a maximum of $40 a month on takeaways. Having their adult daughters, aged 19 and 21, help pay some of the household bills, including electricity, has also helped. “We have an account that everyone puts money into, so when the bills come we pay them from that account,” Kylie added. 9news.com asked personal finance expert Joel Gibson to look at Kylie’s average weekly bills and offer some helpful tips on how to make their budget a little bit more bearable.
- Mortgage loan: $420
- Internet and streaming service: $160 per month, $40 per week
- Phone bill: $60 per month, $15 per week
- Health insurance: $137.18 per month, $34 per week
- Cleansing and essential oils: $140 per month, $35 per week
- Tutoring: $35
- Chiropractic massage: $50
- Medication cost: $80
- Gasoline: $70
- Groceries: $300
- Takeaway: $10 per week, $40 per month
- Electricity: $300 per quarter, $25 per week
All told, Kelly’s weekly bill totaled $1,114.
Health and medical: Save around $650 per year
“It’s easier to compare health insurance policies now than before because they’re all now categorised as gold, silver, bronze or basic,” Gibson said. “So you can look at other insurers’ bronze policies and see how they compare.” For example, HBF bronze hospital extras home cover starts at $2001 a year, while AHM’s bronze extras start at $1728 and HCF’s start at $1726. “Importantly, if you switch to the same level of hospital cover, you don’t have to wait another period – the waiting period continues.” You can compare similar policies using the government website privatehealth.gov.au, or use free comparison services such as Compare Club or Compare the Market. “You can also get new customer rewards worth hundreds of dollars by switching.” For example, both AHM and HCF are currently offering new customers a free switching period of up to eight weeks. “At One Big Switch (where I work) you can get the HCF concession and get an extra $300 for the family,” Kelly told 9news.com.au. Her current health insurance provides her with high dental cover, but HBF no longer offers this service because she has been covered by HBF for 25 years.
Telco: Save up to $594 per year
Kelly pays $50 a month for 80GB of data, which her provider no longer offers. She has her own Apple iPhone. If she wants to reduce her data allowance, she can switch to a smaller gigabyte plan for a slightly less monthly cost. “Nothing is cheaper than the $10 a month Woolworths Mobile plan that Kelly’s son is paying,” Gibson said. “But if she’s paying $50 a month to Optus, then there’s a saving – having her own phone means she can easily switch to a cheaper plan.” The big brands tend to be a bit more expensive, but the smaller, cheaper ones use the same network and some are even owned by the big companies. “Optus currently offers 30GB for about $50, while others offer the same amount of data but start at $11 to $19 for six to eight months on the same network, then $30 a month thereafter.” Their NBN is about $95 a month, which is a typical price for a FastNBN plan with download speeds of about 100Mbps.
Energy: Up to $1086 in rebates
“Unfortunately, Western Australians are unable to save money on their energy bills by switching to an alternative energy source as there is only one state-owned energy supplier,” Gibson said. “Fortunately, the WA Government announced this month that it would provide another round of $400 rebates for all households, and the federal budget also confirmed another round of $300 rebates for all households.” “If Kelly does not receive Family Tax Benefit Part A, it may be worth considering it for her as it may also qualify her family for a health care card and increase their state tax rebate to $1086.”
Mortgages can be difficult to negotiate, but Gibson says it never hurts to ask. (Image: Supplied)
Groceries
“I have two celiacs in my family, so I know how annoying it is to have to pay extra for everything!” Gibson says. “You can save a lot of money by making your own foods like bread and cakes whenever possible, and bulk-buying warehouses like Costco have some gluten-free products you can stock up on.” Beyond that, it looks like they’re taking all the smart steps to save on grocery bills: buying in bulk, freezing, cooking in batches, and using lots of vegetables. “Frozen vegetables can be up to 50% cheaper than fresh, as can ‘ugly’ fruit and veg and market produce – so employ those strategies too if possible.”
Mortgage: You never know…
“Call your lender,” Gibson says. “Ask them if they can reduce your rate a bit more.” Mention the rates you’ve seen on comparison sites like Ratecity and Canstar as low as 5.90%. “You never know.. they might work together.” Joel Gibson is the author of EASY MONEY and a money saving expert on TikTok, TODAY, 2GB and ABC Radio. The information provided on this website is for general information only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website, you should consider whether the information is appropriate in light of your objectives, financial situation and needs.
