Claudia will be able to save up to $2,000 per year after switching to a cheaper provider. (Source: Instagram/Getty)
An Australian mum has unlocked $2,000 worth of savings each year after we did a deep dive on all her bills and services. And she’s just one of the many people we’ve managed to help with their finances.
I’ve been touring the country looking at the bills of average Australian households for the latest season of Your Money and Your Life. I absolutely love talking to real people about their money and budget goals.
Most people don’t have lofty ambitions – they don’t need a mansion or a fancy car to be happy – they want to be rich in life experience. Financial freedom affords us more time with the people we love.
So, working with the expert team at Compare the Market, we look at grudge purchases like insurance, home loans, and energy bills, to see if there’s a simple switch that could mean they pay less. Because that’s money better spent on that precious family time.
For Claudia, a Melbourne mum-of-two, she will now be able to spend hundreds of dollars on her trip to Greece for her son’s wedding rather than on those expenses.
It doesn’t matter how many times I see it; I am constantly amazed at the potential savings – which can range from hundreds to thousands of dollars – hiding right under our noses.
Here’s a few things I’ve noticed that a lot of these families have in common.
A few things I’m learning from all these families is the number of people that still automatically renew their insurance policy every year without checking out whether there’s potentially a better deal available.
In episode three, we met Marina, who was whacked with a car insurance renewal notice up $745 for her 12-year-old Ford Focus.
How insurers justify price hikes like that just mystifies me.
Compare the Market found a similar policy, with the same excess, that was less than half what she had been paying – a whopping $1,498 difference.
Claudia felt she was paying too much to insure her 15-year-old SUV and Compare the Market discovered she could reduce her bill by 25 per cent.
“I don’t understand why the car insurance premium keeps going up every year. I’m a rating one driver and I have never had an accident, and it’s getting older the car, so it’s not really that valuable,” she said.
While she had to agree to a new age restriction and a certain kilometre limit, the new policy would save her up to $240 per year.
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The cost of energy is just sucking so many dollars out of the household budget that people want to use for holidays and spending on their kids.
So, checking you’re on a great deal from energy retailers is really essential, particularly during the cold weather.
Claudia found she could save around $50 a quarter – roughly $200 a year – by switching to a cheaper electricity plan with a different provider that was offering 25 per cent off the reference price in Melbourne.
That’s assuming her energy usage remains the same.
Offers and discounts on energy plans usually expire after a year, so it’s worth comparing if you haven’t checked in the past 12 months.
“I was really surprised about those potential savings that I could obtain,” the Melbourne mum said.
“You really need to check your premiums every opportunity you get. Don’t leave any stone unturned.
“The $2,000 will really help me with spending some good times in Santorini. I feel really confident about my financial goals, and I know it’s only going to get better.”
And finally, I’m stunned at the number of people who still don’t know what interest rate their home loan is and whether they can get a better deal elsewhere.
We’ve seen the cash rate drop 0.75 per cent this year. If your bank hasn’t passed on those savings, it’s time to start asking why.
Shop around and see if you could save with a cheaper rate or even a cashback elsewhere. If your lender can’t match the leading offers, it may be time to switch.
I’m so proud of the families we’ve met for the efforts they’re making to get their finances in order.
I think they’re extremely brave for sharing their stories and setting a great example for the rest of us by committing to be more proactive with their bills.
So, if you could do with some inspiration, don’t forget to join me every Friday 1pm AEST for the latest series of Your Money and Your Life, where we go into depth about ways to try and save, spend, and enjoy your money a whole lot more.
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