Once every six months or so, Nine’s finance editor Chris Kohler gears up for “hell day”.
That’s when he sits down and figures out exactly how much he’s paying for recurring bills like insurance, utilities, and subscription services, then sets himself the tedious task of finding better deals.
It’s “horrible” work but for budget-savvy Australians, it’s absolutely worth it.
Chris Kohler is a journalist, Nine’s Finance Editor, and a finance content creator. (Nine)
“You just have to sit there, go through all of your all of your regular bills and ask the question of whether or not you’re with the right provider,” he told nine.com.au.
“And I’ve gotta say, it is no fun, it sucks – but it’ll help.”
After more than a decade reporting on finance, Kohler has picked up plenty of tricks that help him stay on top of his own money.
He’s also learned how to spot a dud deal being marketed as something it’s not.
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Now he’s sharing that knowledge in his new book How They Get You: Sneaky Everyday Economics and Smart Ways to Hold on to Your Money, out next week.
As well as providing the framework for everyday Aussies to make better choices about how to spend and save money, the book exposes the tactics businesses use to make consumers spend more.
Because in the modern age of surge pricing, drip pricing, subscription models and sneaky marketing, it happens even more often than you think.
“The thing that’s happened in the last 10 to 15 years is that big businesses have become much sharper in in how they market to people, and how they how their business models extract money from people,” Kohler said.
Businesses do it with everything from loyalty schemes to late fees, gift cards to sneaky supermarkets, and Aussies pay the price.
How They Get You: Sneaky Everyday Economics and Smart Ways to Hold on to Your Money by Chris Kohler. (Penguin)
Buy Now, Pay Later (BNPL) services are a great example.
Kohler said while BNPL services can be a good tool when used reasonably and responsibly, that’s rarely what happens.
Instead, a concerning number of Aussies are using BNPL for things they can’t afford, failing to pay the instalments in time, and accruing debt as a result.
”I talked to the national debt helpline and they said that really small consumer debt, the type that you would barely even think about, is increasingly part of those conversations that they have,” Kohler revealed.
Loyalty programs are similarly flawed.
They typically require consumers to provide important personal data just to sign up, but what consumers get in return is rarely worth the exchange.
BNPL services can be a good tool when used responsibly – but that’s rarely what happens. (Getty)
“We give away a lot of very valuable data about ourselves – personal information, contact information, what we’re buying, how we’re buying it, where we’re buying it,” Kohler said.
“This is all very valuable to a company, and I don’t think loyalty points reflect that value.”
Especially when so many loyalty programs have experienced data leaks in recent years.
Kohler even took it a step further, claiming that it just doesn’t pay to be a loyal customer anymore – if it ever did.
“The biggest things that I’d like people to take away from the book is that being a loyal customer is pretty much never a good thing,” he said.
“And that giving your data away to a big organisation for cheap, like for loyalty points, is pretty much never worth it.”
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Nor does Kohler believe property is the best way to build wealth, despite generations of Aussies being urged to get into the property market.
“We give away a lot of very valuable data about ourselves … and I don’t think loyalty points reflect that value.” (Getty)
Though it might have been good advice once, it just isn’t realistic in Australia’s current housing and cost of living crises.
“The problem with jamming the property rhetoric down people’s throats when they’re young is that they think, ‘if I can’t do that, then I shouldn’t do anything,'” Kohler said.
“Whereas there’s millions of ways to set up a long term, diversified investment portfolio that doesn’t include going into an enormous amount of debt and paying an enormous amount of stamp duty right out the gate.”
As for what Aussie can do to improve their own finances, a lot of the best advice out there is about making small changes that can have a big payoff over time – like not paying a fortune for overpriced food delivery services.
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Kohler said the expense just isn’t worth it, and not just for the consumers.
“Restaurants don’t like it because it takes as much as a third of their fee for the order, people at home are paying up to 45 per cent more than if they go and get it themselves,” he said.
“And the delivery people themselves are doing dangerous work, for not much money.”
So while it’s less convenient to pick up food yourself, it’s definitely worth it financially.
That’s the same principle behind Kohler’s bi-annual “hell day”.
Sitting down and making sure you’re getting the best deal on every bill could save you thousands. (Getty Images/iStockphoto)
Giving up one day to assess all your bills and do the research to find better deals is annoying in the short term, but could save you thousands over the course of a year.
Kohler would love to see more financial education in schools so the next generation of Aussies are better equipped to manage their money and spot sneaky marketing tactics.
“The thing that I would love Australians to do is just to become a bit more suspicious, a bit more aware as they walk through transactions with big businesses,” he said.
“There’s a lot of power in being a consumer.”
Have you got a story? Contact reporter Maddison Leach at mleach@nine.com.au
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