Choosi Age Series: How homeowners can save money at each stage

It’s been a challenging time for many Australians as inflation takes its toll on our bank balances. The rising cost of living for the June 2022 quarter showed prices climbing by 6.1%, the fastest annual pace since 2001, and consecutive interest rate rises are causing mortgage repayments to increase.

What does this mean for Australians? To help you tighten those purse strings and hopefully top up your rainy-day savings, read on for some strategies for homeowners at different life stages.

However, please remember that the ideas and information below don’t take your personal circumstances into account and seeking advice before making any decisions is important. This is not a guide – this is just a starting point to get you thinking about what could be beneficial for you.

Money-saving tips for young homeowners

If you’ve only recently entered the property market, these recent rate hikes could be having an adverse effect on your ability to service your home loan. The good news is that even small savings can make a big difference.

Compare and switch utility providers

With most of us spending at least part of the day in the digital world, it’s never been easier to get a better deal on your energy bills. Gas and electricity prices are expected to keep rising into 2023, so consider jumping online, to compare deals from a number of different providers and then choose a plan that could reduce your bills.

Take care of projects DIY

The impact of COVID-19 is still expected to disrupt supply chains almost three years on, and the tradie shortage is expected to continue for the foreseeable future. So rather than forking out for expensive contractors, why not hone your DIY skills and handle some projects around the home yourself? There are plenty of expert DIY video tutorials online, or you could engage an experienced friend or family member for a cost-effective reno.

Speak to your lender about offset accounts

If you have savings set aside but are worried about rising interest rates, it could be helpful to speak to your lender about putting that money into a 100% offset account or a loan account with a redraw facility. You’ll still have access to that money when you need it, but it can help reduce the length of your loan.

Money-saving tips for older homeowners

Older homeowners are in the same boat as their younger counterparts, so if you are looking to save a few dollars while inflation and interest rates increase, consider the following ideas.

Evaluate contractors and lock in quotes

Yes, tradies are in high demand right now, but that doesn’t mean you need to get ripped off just to get something in your house fixed. Consider spending time curating a few different contractors and then ask them to provide an accurate quote, in writing. This is especially helpful if you are concerned about costs blowing out down the track.

Fix up air leaks to save on energy costs

Did you know that something as simple as an air leak in your home can cause your energy bills to skyrocket? From extra heating in winter to longer use of the air conditioner in summer, it’s a cost you simply shouldn’t put up with. So, plug those leaks and double-check that your current energy supply is appropriate for your household.

Consider downsizing or relocating

Even if you aren’t in financial stress, moving homes can be a way to boost your savings and enjoy a more comfortable lifestyle. If the kids have flown the coop and you’re finding it increasingly expensive to maintain a big house, why not downsize? Alternatively, some Australians are enjoying the benefits of moving to regional areas, which often comes with a lower cost of living.

Protect yourself

You might not be able to do anything about inflation and interest rate hikes, but you can protect yourself financially and save money as a homeowner with these simple yet effective strategies.

With the price of living going up and up, now can also be a good time to check that you are on the most appropriate and cost-effective home and contents insurance for your needs. Find a policy today by comparing quotes with Choosi.