7 steps to beat rising interest rates

You may think rising interest rates have you beat, but don’t stress you have plenty of options.

We’ve pulled together 7 strategies that can put cash back in your pocket, helping you manage rising rates – and potentially leave you in better financial shape.

1. Start that budget you’ve always talked about

It’s time to stop talking and start a budget. And not just write it down – start following it!

A budget helps you track spending, shows where you can cutback, and lets you monitor regular savings. What’s not to love?

There are plenty of budgeting apps that make it easier – and a bit of fun. Regularly check in and make usre you record every dollar spent in the appropriate section.

Head to our Budget Planner and we’ll help crunch the numbers for you.

​
2. Spark up savings on power

Interest rates aren’t the only thing rising. Power prices are heating up too[1] – time to check if you could get a better deal. If you’ve been with the same provider or plan for a few years, there’s a good chance you could save by switching.

To know for sure, dust off your latest power bill and head to Energy Made Easy. Plug in a few details about your current provider and household power use, and the site shows how much you could pay with other providers.

These days is relatively easy to switch providers and start saving quickly.

3. Rethink grocery shopping

Groceries can take a big bite out of household budgets. If that sounds like you, switching supermarkets can mean big savings. According to Aldi’s 2022 Price Report[2], making the move to Aldi could cut your annual grocery bill by up to $2,468.

Or head to produce markets or your nearest farmers market for super-fresh greens at budget-friendly prices. You may be surprised how much money you can save by buying local.

Also check the weekly specials catalogues and adjust your meals around the specials on offer – but don’t be tempted by those nasty treats!

4. Skip the auto-renew on insurances

When insurance renewals roll around it can be tempting to tick and flick, paying the bill without checking if you could save elsewhere. It’s quick and easy but it could be costing you.

Shopping around is the only way to know if you’re getting value, and most insurers give new customers a discount of 10-15% when you organise and pay for cover online.

Don’t just look at the savings. Be sure the cover offers the right protection for your needs.

5. Unleash your inner chef

Rising interest rates can be off-set by cutting out or down on delivered meals, take-out, and going out for meals. Sure, we all need to treat ourselves sometimes. But studies shown take-out meals and take-away drinks like coffee suck up a lot of household dollars. A couple each buying one take-away coffee 6 days a week would spend around $3,000 per year!

Eating more at home can be fun, healthy and save you considerable dollars. Once you learn more and get more creative, you’ll break the habit of take-out. And if sometimes you’re just too tired to cook, have a small stash of supermarket ready meals in the freezer. These are cheaper than take-out but convenient for you.

6. Scratch unwanted subs

From gym subscriptions to streaming, it’s a fair bet you’re paying for services you’re not getting maximum value from.

Research by Finder[3] for instance, shows gym membership can cost an average of $19.70 per week. Yet almost one in ten gym members only head to the gym once a year or not at all. Five percent visit the gym once every six months, spending the equivalent of $512 per session.

With streaming services, try and limit yourself to 2 or less maximum. Most have no lock in contract so maybe get used to switching up often to watch shows you like on different services.

7. Start now!

Rising interest rates mean it’s game-on to get on top of money matters. Plan ahead and let the savings stack up with a few smart steps. It can help you come out on top even when rates are climbing higher.

Your home loan can be a great start to save considerable money. Great refinance packages are on offer that can potentially save you close to $4,000 per year in lower interest rate costs. You can either use this money for other expenses (via lower repayments) or keep your loan repayments the same and pay your loan off quicker.

A flexible home loan will give you all the features you need and put you back in control of your budget.

It can start with a quick chat on what your options are. Our lending specialists are available 7 days a week via phone, web chat, or in person.

This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.

[1] https://newsroom.unsw.edu.au/news/business-law/energy-crisis-why-are-electricity-prices-set-rise

[2] Aldi’s 2022 Price Report

[3] https://www.finder.com.au/aussies-overspending-on-gym-membership