• Handle Money

We're in the middle of a cost-of-living crisis. Electricity is up. Petrol is up. Groceries are up. Rent is up. Things are getting very tight for people. Wages aren't keeping up and government seems to have little they can do about it. In fact, the RBA seems poised to further increase interest rates making mortgage repayments and all other debt payments go up. With that in mind I have seen a lot of articles where people are proposing ways, they will have to save money. Some of these ideas are great, some are terrible. Here's a list of the ideas that are terrible.

Only switching the hot water on every second day.

This one sounds like a good idea. I'll halve my hot water costs! The problem is that it doesn't take a lot of energy to keep water warm. It does take a lot of energy to heat water up. Turning your hot water on every second day may increase your energy bill. There are some ways to save money on hot water.

  1. Reduce the temperature to 60 deg this can save hundreds of dollars a year. It needs to stay above 60deg to kill bacteria.
  2. Taking short showers. 4 minutes or lower will save a huge amount of hot water.
  3. Water efficient shower heads will also save waters
  4. Wash clothes with cold water

Cancelling your insurance

Frequently one of the first things people do when they are struggling to make ends meet is cancel their insurance. This is fine in the short term, but it can be catastrophic. We have dealt with many people who've cancelled their insurance and then crashed into a car and ended up with a $45,000 bill.   Like wise with your home insurance. It does save money in the short term but if your house burns down, you are completely ruined.

Not Servicing your Car

Servicing vehicles can be another thing that is put off when money is tight. This can cause problems in a variety of ways. Things that are a little bit broken can get very broke. For example, if you put off changing the brake pads they can wear completely down and damage the disk rotors. This takes what could have been a $150-$350 repair and makes it repay that may be several thousand dollars.

If money is super tight a lot of chain car repair places will offer an essential service where they will change the oil and give the car a check. Typically, these cost between $150 and $200. If you're super hard up for money you can purchase a Haynes Service manual and do it yourself. Oil is not difficult to change and that will do a lot to extend the life of your car.

Buying in Bulk

Buying in bulk can often cost you money, or at least is it might not help your finances. If money is tight quite often cash flow is more important that achieving the lowest cost. For example you might be able to get 20kg's of washing power for 10 cents cheaper per kilogram but you have to pay $50 for it. Whereas you could have bought 4kg for $4 and improved your cash flow. It is better to not paying the lowest amount but have $10 left over each week that it is to get the best price but have a negative cash flow.

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