LIFESTYLE

Cheap and cheerful: How to find joy in living frugally

31 August, 2023 . 0

Pinching pennies to meet cost of living pressure? You’re not alone. Experts share where to find savings – and how to change your mindset about living on a budget.

In the last 12 months alone, the cost of living has increased by up to 10 per cent for many of us.

In response, four in five Australians have reduced their spending and more than 50 per cent of us say we’ve experienced financial stress.

This has had a worrying knock-on effect, with Lifeline revealing that cost of living pressures have triggered a record demand for its services.

How to think differently about cutting costs

A mindset shift can’t cure financial stress or its impact, but when you need or want to cut costs, how you frame it mentally can make a difference to how you feel.

Keepin’ It Frugal website co-founder Sarah Lawrie says one of the biggest misconceptions about living frugally is that it’s a symbol of “lacking”.

“Changing your perception in the first instance can really help put things in perspective,” Sarah says.

“Reframe saving money to be a challenge, or gamify it to bring that element of fun.”

Laura Turner, Sarah’s Keepin’ It Frugal co-founder, says thinking about the bigger picture can also deliver this shift in perspective.

“For me, sustainability is definitely at the forefront of my mind, and it just so happens to coincide with saving money most of the time as well,” Laura says.

“For example, I hate waste, so I’m more than happy to buy things like bread or yoghurt that’s half price at the supermarket, if it saves it from the trash while saving us money at the same time.”

5 ways you can beat cost of living pressure

Use these tips to help cut your cost-of-living and feel a sense of accomplishment at the same time.

Shop around for insurance

By doing your homework and looking for the best deal on your car insurance, you can save $650-$1100 a year.

“If you’ve been with the same insurance provider for years, chances are your premiums would’ve been sneaking up and up each year,” Sarah says.

“Get two or three quotes from other providers to see if it’s still a good price, or you might find you can save hundreds by swapping over to a new company.”

Find a better electricity deal

When it comes to your electricity bill, the Australian Competition & Consumer Commission (ACCC) recommends contacting your provider and requesting a cheaper rate.

ACCC Commissioner Anna Brakey says many Australians are likely paying more for electricity than they need to due to increased rates.

In fact, some recent price increases are up to 20 per cent above the regulated safety net.

“You don’t necessarily need to change energy company to get a better deal,” Anna says.

“The simplest thing you can do is to contact your existing company and ask how your current plan compares to the regulated standing offer.”

You can also make your own comparisons using the government’s Energy Made Easy tool.

Hit the op shops for clothes

This will save you money and give clothing a second chance – this is especially important, considering we each send 23kg of it to landfill every year.

Laura’s top op shop tip is to go in knowing what you need.

“This can help keep you on track in the shop, so you don’t get overwhelmed by the amount to sift through.”

Alternatively, look a little closer to home, and ‘shop your wardrobe’ and see if you can find new inspiration for garments you already have.

Be picky about where you buy petrol

Use PetrolSpy to find the cheapest petrol station wherever you are.

“The prices can vary up to 50 cents a litre between places 500 metres down the road from each other,” Sarah says.

“If you’re filling up a 50-litre tank, that’s a difference of 25 dollars.

“And if you fill up fortnightly, that’s a saving of 650 dollars over a year.”

Stop buying unnecessary things

Laura suggests joining your local Buy Nothing group, where everything shared is given freely.

“Our recent win was being gifted a 3.4-metre ladder, which we’ve been using to paint our house.”

More cost-cutting tips:

Written by Karen Fittall.