Five ways to beat rising costs
Two weeks after the US and Israel began bombing Iran, fears of inflationary impact took hold in Australia.
Indeed, due to oil alone, a forecast from NAB last week suggested that our consumer price index could rise by over a full percentage point to over 5 percent.
This increases the possibility of a larger interest rate hike than expected. But I’ll come back to this. Here are five immediate ways to control your rising conflict costs:
Gasoline: If there’s one thing we’ve seen since the start of the war and oil prices entering slammer territory, it’s how little control we have as a country over this issue (despite ‘dirtier’ fuel being allowed here for 60 days and also the unlocking of Australian oil reserves on Friday).
As I write, the price of Brent crude oil is close to $140. However, given the sudden jumps at some fuel pumps and the huge differences between others, there is no doubt that some service stations locally are playing a silly game with the gas cycle.
While the PetrolSpy app remains one of the best ways to find the cheapest fuel near you, the ACCC has been prompted to issue a warning against gouging. Writing in my zip code alone, there was a difference of more than 14 cents per liter between the cheapest and the most expensive.
Groceries: If the cost of goods on our supermarket shelves is going to increase (and only high gasoline costs can quickly ensure this), it is time to provide a compensatory discount in general.
Savers have long been buying only pre-purchased gift cards for less than face value; You can get 5 percent or more off everything, which can cancel out the increased cost of just a few things.
Look for gift card deals such as Woolworths/Wish and Coles from any relevant telco, motoring association or union loyalty scheme and the Entertainment App (which is the old-school coupon book sold to benefit charities, digitally reinvented).
Entertainment and going out: Due to the above places and especially its wide range, the Entertainment App is perfect for entertainment and discounts on dining out. You don’t have to pay full price; You should be able to get 2-for-1 meals or tickets, or 25 percent off total.
Keep this in mind for cinemas and theme parks, especially as school holidays approach.
Other purchases: Cashback services refund you a portion of the amount you paid for a range of products and services. Even though they seem too good to be true, they are legitimate.
There are special services such as Shopback, as well as the over-40s rewards card Citro Rewards, and many rival offers from banks and other organisations.
You should be able to get some back on every purchase you make. I especially like cashback on accommodation, where a 15 percent cashback represents a good return. My advice for any trip is to wait for the “increased” offers they post from time to time.
You can also secure a discount on groceries, which is essentially a reverse discount, usually through a cash back product.
Your mortgage: Nearly 35,000 Australians a month have recently been refinancing their home loans for better deals, according to ABS credit indicator figures.
The latest Finder Cash Rate Survey reveals that 84 percent of economists and experts no longer expect any interest rate cuts this year, but only 38 percent expect an increase on Tuesday.
However, in the meantime, three of the four major banks predict two interest rate increases this year, the first of which will be on Tuesday. Only ANZ still believes one will arrive in May. Therefore, you may not have time to waste in abandoning and changing your lender.
If you currently refinance a typical $700,000 home loan from an average variable interest rate of 6.5 percent to a market-leading interest rate of 5.5 percent, you’d see $428 a month coming back into your pocket.
If you refinance a lower loan for $500,000 at the same initial interest rate for the same “discount,” you’ll be $306 per month better off. And a higher loan amount will of course compensate more dramatically for suddenly acute hip pocket drainage.
Think about it; An immediate 100 basis point rate cut saves you from four official rate hikes.
Nicole Pedersen-McKinnon is the author of: How to Get Mortgage-Free Like Me?Available at: nicolessmartmoney.com. Follow Nicole Facebook, X And instagram.
- The advice given in this article is general in nature and is not intended to influence readers’ decisions about investments or financial products. They should always seek their own professional advice, taking into account their personal circumstances, before making any financial decisions.
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