WEBVTT - Ways to save on those big household expenses 0:00:07.050 --> 0:00:09.420 Hello and welcome to It all adds up. The podcast 0:00:09.420 --> 0:00:11.430 where we chat about money, how to get it, how 0:00:11.430 --> 0:00:13.710 to spend it, and how to invest it. I'm money 0:00:13.710 --> 0:00:16.169 editor at the Sydney Morning Herald and The Age newspaper's 0:00:16.170 --> 0:00:16.920 Dom Powell. 0:00:17.100 --> 0:00:20.190 And I'm Jess Irvine, a senior economics writer at the 0:00:20.190 --> 0:00:23.759 same paper's Look Dom, it's been a massive week in 0:00:23.760 --> 0:00:28.680 personal finance, with interest rates still on the rise. Meanwhile, 0:00:28.680 --> 0:00:31.140 we just know the cost of living is biting across 0:00:31.140 --> 0:00:34.860 everything really from food to rent to toilet paper. Actually, 0:00:34.860 --> 0:00:38.100 I'm not sure about toilet paper. I did that actually 0:00:38.100 --> 0:00:41.700 get more expensive during COVID? It definitely got more expensive. 0:00:41.700 --> 0:00:43.680 We just had less of it. So, I mean, it 0:00:43.680 --> 0:00:45.750 was expensive. If you're buying from the guy on Facebook 0:00:45.750 --> 0:00:47.820 marketplace who was hoarding rolls, who. 0:00:47.820 --> 0:00:49.290 Was charging $100, I never. 0:00:49.290 --> 0:00:51.810 Got to that point, which I'm honestly sad about because 0:00:51.810 --> 0:00:53.159 I think that would have been that would have been 0:00:53.159 --> 0:00:55.620 fun to have to do that. But yes, you know, 0:00:55.620 --> 0:00:58.320 things are expensive. Things have been expensive for a while now. 0:00:58.320 --> 0:01:00.480 We know this regular listeners of the pod will know 0:01:00.480 --> 0:01:02.790 that that the cost of living has been has been 0:01:02.790 --> 0:01:06.059 pretty grim. And so we're continuing our series, our six 0:01:06.060 --> 0:01:09.149 part series, looking at real life budgets with real life 0:01:09.150 --> 0:01:12.750 people and real life problems and how people are tackling 0:01:12.750 --> 0:01:15.810 the rising cost of living. And this week's question comes 0:01:15.810 --> 0:01:19.170 from our listener, Tony, who wants to know how he 0:01:19.170 --> 0:01:21.420 and his family can save on some of their bigger 0:01:21.420 --> 0:01:24.990 bills and cut some costs out of their household budget. 0:01:24.990 --> 0:01:26.490 So let's have a listen, Jess. 0:01:28.350 --> 0:01:31.800 Hi, Jess and Dom. It's Tony from Melbourne. I work 0:01:31.800 --> 0:01:34.380 full time and live with my wife and two kids 0:01:34.380 --> 0:01:37.470 aged 12 and eight. We find insurance is one of 0:01:37.470 --> 0:01:40.920 our biggest costs. We spent about 3500 a year on 0:01:40.920 --> 0:01:44.429 car insurance for our two cars. I drive to work 0:01:44.430 --> 0:01:47.640 in the city and my wife drives to park more, 0:01:47.640 --> 0:01:51.270 both from Berwick. Our petrol and tolls add up to 0:01:51.270 --> 0:01:56.250 about $1,300 a month. We spent about $2,000 on food, 0:01:56.250 --> 0:02:00.090 which includes groceries and everything to do with Coles and Woolworths, 0:02:00.090 --> 0:02:03.570 including eating out. I would appreciate any tips you have 0:02:03.570 --> 0:02:05.580 on how we could save. Thank you. 0:02:06.570 --> 0:02:10.169 Radio So Tony's highlighted sort of two pretty major costs 0:02:10.320 --> 0:02:13.410 for his family here, which is insurance and food. So 0:02:13.410 --> 0:02:16.320 I suppose let's start with insurance. Jess, what are you 0:02:16.560 --> 0:02:17.429 what do you reckon? 0:02:17.550 --> 0:02:22.200 Yeah, I was really gobsmacked by Tony's car insurance because 0:02:22.200 --> 0:02:26.880 I think I pay about $500 for comprehensive insurance on 0:02:26.880 --> 0:02:27.750 that's cheapest chips. 0:02:28.020 --> 0:02:30.810 I'm at like chips. I'm at like a grand for mine. 0:02:30.990 --> 0:02:33.390 Well, this is fantastic because I can share with you 0:02:33.389 --> 0:02:36.270 how I managed to do this. I did check in 0:02:36.270 --> 0:02:38.550 with Tony and he is driving sort of some higher 0:02:38.550 --> 0:02:41.280 value cars. So I think that has an impact because 0:02:41.280 --> 0:02:43.020 you have to insure them for a higher amount. The 0:02:43.020 --> 0:02:45.690 premiums are higher. And I did try to sort of 0:02:45.690 --> 0:02:47.490 jump on some websites. I was like, I'm going to 0:02:47.490 --> 0:02:50.310 save Tony some cash. And I was jumping on lots 0:02:50.310 --> 0:02:53.640 of different insurance websites and I remembered how horrible it 0:02:53.639 --> 0:02:57.150 is to have to go through shopping around your insurance. 0:02:57.150 --> 0:02:59.010 And then I gave up. So, Tony, I'm sorry, I 0:02:59.010 --> 0:03:02.250 haven't actually got you an improvement on your current premiums. 0:03:02.250 --> 0:03:07.470 But just to empathise with everybody shopping, your insurance is 0:03:07.470 --> 0:03:10.410 not like the super sexiest thing you're ever going to do. 0:03:10.410 --> 0:03:14.130 It's not the most exciting. But unfortunately, we have to 0:03:14.130 --> 0:03:16.710 let people know that it is actually a massive way 0:03:16.710 --> 0:03:20.309 to save money. So shopping around and not just letting 0:03:20.310 --> 0:03:24.510 your car insurance in particular auto renew, because one of 0:03:24.510 --> 0:03:27.540 the things we know with insurance is that if you 0:03:27.540 --> 0:03:33.120 just auto renew every year, the insurers have differentiated pricing 0:03:33.120 --> 0:03:36.210 so that you actually pay what we call a loyalty tax, 0:03:36.210 --> 0:03:39.180 that if you don't present yourself and say, I want 0:03:39.180 --> 0:03:43.110 a better deal, they will slowly ratchet up your premiums 0:03:43.110 --> 0:03:47.400 compared to what they offer to new customers. So I'm 0:03:47.400 --> 0:03:49.410 not actually sure if Tony has done this, but he should. 0:03:49.410 --> 0:03:51.690 At least there's a thing you can do called mystery 0:03:51.690 --> 0:03:57.180 shopping where you just go on your insurer's website and go, Yes, 0:03:57.180 --> 0:04:00.000 I'd like a quote. Here is some information it asks 0:04:00.000 --> 0:04:01.920 you for your address. So I'm not sure if it 0:04:01.920 --> 0:04:03.720 has a way of knowing, Hey, wait a minute, you're 0:04:03.720 --> 0:04:07.110 already a customer. But see what the quote that it 0:04:07.110 --> 0:04:09.930 generates for you and that's something everyone can do is 0:04:09.930 --> 0:04:11.310 just sort of shadow shop. 0:04:11.610 --> 0:04:15.240 I think shopping around is definitely something that everyone should do, though. 0:04:15.240 --> 0:04:17.790 I think in my own personal experience, shopping around has 0:04:17.790 --> 0:04:21.839 only ever made my insurance more expensive. Oh, and I 0:04:21.839 --> 0:04:24.720 have no idea why this is. Maybe it was just 0:04:24.720 --> 0:04:26.220 because I got in at a good time and I'm 0:04:26.220 --> 0:04:28.529 sitting on like quite, quite a good deal. But every 0:04:28.529 --> 0:04:31.080 single time I try and look for for other other 0:04:31.080 --> 0:04:34.590 car insurance, it's at least a few hundred dollars more. 0:04:34.740 --> 0:04:37.200 No matter where I go, even if I go to 0:04:37.200 --> 0:04:39.210 my same insurer at the moment. So I think it 0:04:39.210 --> 0:04:40.950 can be a bit of a mixed bag sometimes. So 0:04:40.950 --> 0:04:43.349 sometimes you just got in at a sweet spot that 0:04:43.350 --> 0:04:44.790 maybe that is the best price you're going to get. 0:04:44.790 --> 0:04:47.190 Well, it can depend and it depends on like where 0:04:47.190 --> 0:04:50.700 you housing garage, the car, how many kilometers you drive. 0:04:50.700 --> 0:04:53.370 And so each insurer has their own little intricate system. 0:04:53.370 --> 0:04:55.980 So maybe you're getting stung by, you know, just some 0:04:55.980 --> 0:04:58.650 sort of finer detail. And look, just to join the 0:04:58.650 --> 0:05:02.010 chorus of don't actually shop around if you're using some 0:05:02.010 --> 0:05:07.260 of the comparison websites like compare the market finder not 0:05:07.260 --> 0:05:09.719 to sort of penalise any of them in particular, I 0:05:09.720 --> 0:05:12.240 have found with some of those sites, you want to 0:05:12.240 --> 0:05:14.160 get a quote, you're like, Sure, show me the prices. 0:05:14.160 --> 0:05:16.380 And they're like, Sure, give me your email and your 0:05:16.470 --> 0:05:18.840 mobile phone number and I will call you for the 0:05:18.839 --> 0:05:22.290 next five weeks trying to get you to take up 0:05:22.290 --> 0:05:25.170 a new policy. So you do sort of expose yourself 0:05:25.170 --> 0:05:28.049 to quite a lot of cold calling with some of 0:05:28.050 --> 0:05:30.900 those websites, not necessarily the ones I've just named. But 0:05:30.900 --> 0:05:34.020 having said that, in theory, if you are just auto 0:05:34.020 --> 0:05:37.200 renewing every year, you are going to get stung. So 0:05:37.200 --> 0:05:39.420 it is a good time to shop around just to 0:05:39.420 --> 0:05:42.660 get that competitive force working for you and becoming a 0:05:42.660 --> 0:05:45.000 new customer, which we know is just the basic level 0:05:45.000 --> 0:05:48.630 of the basic rule of finance, is to to shop around. 0:05:48.839 --> 0:05:51.270 But I suppose like outside of like shopping around, there 0:05:51.270 --> 0:05:52.830 are other ways that you can save, right? Like you 0:05:52.830 --> 0:05:56.370 can't you don't just have to jump ship from insurance 0:05:56.370 --> 0:05:58.230 company to insurance company every year. 0:05:58.830 --> 0:06:01.320 Yeah. So one of the best ways to sort of 0:06:01.320 --> 0:06:04.080 see whether you're actually getting value for money on the 0:06:04.080 --> 0:06:06.900 insurance that you have is actually to review the coverage 0:06:06.900 --> 0:06:09.300 that you have. So we're moving into territory now, which 0:06:09.300 --> 0:06:12.750 is not just I'm going to get something cheap, the 0:06:12.750 --> 0:06:15.960 same thing cheaper, which is shopping around, but actually looking 0:06:15.960 --> 0:06:18.839 at scaling back some of the insurance that you have. 0:06:18.839 --> 0:06:21.210 So a lot of people are underinsured. I think a 0:06:21.210 --> 0:06:23.659 lot of people are also over insured in that they're 0:06:23.670 --> 0:06:26.789 sort of paying for these top level comprehensive bells and 0:06:26.790 --> 0:06:29.920 whistles policy. Seas insured for all the things and with 0:06:29.920 --> 0:06:32.950 the lowest possible excess, because I think that's the right 0:06:32.950 --> 0:06:36.010 thing to do. And, you know, that can be a 0:06:36.010 --> 0:06:38.560 good decision for you. But if you are, for instance, 0:06:38.560 --> 0:06:41.770 and I don't think Tony's actually in this particular situation, 0:06:41.770 --> 0:06:44.050 but like with interest rates going up, if you're looking 0:06:44.050 --> 0:06:47.080 at all your insurance premiums and just going, this doesn't 0:06:47.080 --> 0:06:50.320 add up, there are ways to reduce your premiums, which 0:06:50.320 --> 0:06:53.410 do involve a trade off for slightly less coverage than 0:06:53.410 --> 0:06:55.930 you're getting. But the first one is just review your excesses. 0:06:55.930 --> 0:07:00.160 So if you accept a higher excess, which is the 0:07:00.160 --> 0:07:02.020 amount that you agree to pay in the event that 0:07:02.020 --> 0:07:04.300 you're in a prang and you have to actually, you know, 0:07:04.300 --> 0:07:07.239 make a claim, you're like going to pay $500 out 0:07:07.240 --> 0:07:10.270 of pocket or it's $1,000 out of pocket. If you 0:07:10.270 --> 0:07:13.150 agree to a higher excess, that's going to reduce your 0:07:13.150 --> 0:07:16.929 ongoing premiums. And so, you know, that could turn out 0:07:16.930 --> 0:07:19.990 really bad for you if you just drove into something 0:07:19.990 --> 0:07:22.960 the next day and then you're going to pay $1,000, 0:07:22.960 --> 0:07:26.410 not 500 out of pocket, to get the work done 0:07:26.410 --> 0:07:29.860 to your car or, you know, you could be saving, 0:07:30.190 --> 0:07:33.430 I don't know, like a couple of hundred dollars every year, 0:07:33.430 --> 0:07:35.740 you know, do that for a couple of years. And 0:07:35.740 --> 0:07:38.350 then you've you've saved as much as you would have 0:07:38.350 --> 0:07:41.140 to pay extra out of pocket. And so you're ahead 0:07:41.140 --> 0:07:43.390 on the deal. So one of the reasons why my 0:07:43.390 --> 0:07:46.180 car insurance is so cheap at like 500 is I've 0:07:46.180 --> 0:07:48.640 actually got a pretty low level of insurance and I 0:07:48.640 --> 0:07:51.220 think I've agreed to an excess, which is something like 0:07:51.640 --> 0:07:55.420 $2,000 or something. That's because I know that I've got 0:07:55.420 --> 0:08:00.100 a significant bank of savings. Hey, I'm not rolling in it. 0:08:00.100 --> 0:08:02.580 But sorry, I've, I've got an. 0:08:02.620 --> 0:08:04.150 Address is completely just as loaded. 0:08:04.150 --> 0:08:07.270 I'm loaded. I've got an emergency fund which is fully 0:08:07.270 --> 0:08:11.050 funded to sort of 3 to 6 months of living expenses. 0:08:11.050 --> 0:08:13.270 So I know that if I do have to incur 0:08:13.270 --> 0:08:15.910 that excess, it's not going to ruin me. And they 0:08:15.910 --> 0:08:18.160 sort of say insure for against things that are going 0:08:18.160 --> 0:08:18.910 to ruin you. 0:08:19.030 --> 0:08:21.340 And I suppose like it's almost like a little game, right? 0:08:21.340 --> 0:08:23.860 Like if you've got a really high excess, it's like, 0:08:23.860 --> 0:08:25.929 you know, the longer I can go without having a 0:08:25.930 --> 0:08:28.870 car accident, the better value for money. I'm getting here. Yeah. 0:08:28.870 --> 0:08:31.660 And it was like it was hundreds of dollars off 0:08:31.660 --> 0:08:34.329 my annual premium to do that. So I'm a bit 0:08:34.330 --> 0:08:36.070 of a gambler, as it turns out. I've got a 0:08:36.070 --> 0:08:38.410 pretty high risk tolerance and I'm in a position to 0:08:38.410 --> 0:08:39.969 be able to to play with that sort of thing. 0:08:39.970 --> 0:08:42.700 So I mean, otherwise to save. So look at your 0:08:42.700 --> 0:08:47.260 sum insured. So there's two different car insurance policies on 0:08:47.260 --> 0:08:51.700 comprehensive anyway. You can do either a market value, so 0:08:51.700 --> 0:08:53.740 you write off your car and the insurer says, great, 0:08:53.740 --> 0:08:55.870 we will pay you out the sum that is equivalent 0:08:55.870 --> 0:08:57.520 to the market value of your car at the time 0:08:57.520 --> 0:09:00.880 of your crash. Or you can agree to an agreed 0:09:00.880 --> 0:09:05.620 value policy. So so you can there's a minimum that 0:09:05.620 --> 0:09:07.809 they'll let you do. But like with my car, it's 0:09:07.809 --> 0:09:11.050 probably worth about 20 grand second hand. I think I've 0:09:11.050 --> 0:09:13.809 got it set so that I've agreed that I'll get 0:09:13.809 --> 0:09:17.589 a payout of like ten grand or 12 grand total 0:09:17.590 --> 0:09:20.260 if I totally. So that won't buy me my same 0:09:20.260 --> 0:09:23.200 car on the open market, but it'll buy me a car, 0:09:23.200 --> 0:09:25.690 you know, like I'll, you know, it's not going to 0:09:25.690 --> 0:09:28.660 replace my car, but I'm just accepting that if I 0:09:28.660 --> 0:09:31.689 do have this terrible accident, that's going to be a 0:09:31.690 --> 0:09:33.160 lot of going on in my life. And one of 0:09:33.160 --> 0:09:34.599 the things is that I'm going to have to drive 0:09:34.600 --> 0:09:36.790 a not as nice car. And of all the potential 0:09:36.790 --> 0:09:38.710 things that are probably going on at that time, that 0:09:38.710 --> 0:09:41.530 might be the least of my worries. Although for some 0:09:41.530 --> 0:09:44.170 people you really want to know that you're covered to 0:09:44.170 --> 0:09:47.650 get the same car again. But however, I saved like 0:09:47.650 --> 0:09:50.980 hundreds of dollars a year on my premium just by 0:09:50.980 --> 0:09:54.490 agreeing to that lower amount. So but essentially you're getting less, 0:09:54.490 --> 0:09:56.229 but you're paying less as well. 0:09:56.530 --> 0:09:59.380 The I guess, radical option if you are looking on 0:09:59.380 --> 0:10:02.140 ways to save on your car insurance, which is this 0:10:02.140 --> 0:10:04.270 is especially relevant, I think, for people who have two cars, 0:10:04.270 --> 0:10:06.459 especially if you have two nice cars, which a lot 0:10:06.460 --> 0:10:10.780 of people do. Um, obviously car insurance is more expensive 0:10:10.780 --> 0:10:14.500 on nicer cars and higher value cars. So what you 0:10:14.500 --> 0:10:16.030 could do if you've got a car that you don't 0:10:16.030 --> 0:10:19.570 drive as much or you use it for like shopping 0:10:19.570 --> 0:10:21.850 trips or, you know, taking the kids to, to soccer 0:10:21.850 --> 0:10:24.400 or something like that, you could sell it on the 0:10:24.400 --> 0:10:26.800 used car market, which is booming at the moment and 0:10:26.800 --> 0:10:29.920 has been booming for a few years. And by something that's. 0:10:30.559 --> 0:10:34.070 Less good, you'll save an insurance, you pocket a bit 0:10:34.070 --> 0:10:36.679 of extra cash. And if all you really need is 0:10:36.679 --> 0:10:39.650 just a functional car, you can pick up something that's 0:10:39.650 --> 0:10:41.690 that's not quite as expensive. So that's I mean, that's 0:10:41.690 --> 0:10:45.020 obviously that's a big decision, but it's definitely something you 0:10:45.020 --> 0:10:46.760 could do and it will save you money in sort 0:10:46.760 --> 0:10:47.980 of a number of different ways. 0:10:47.990 --> 0:10:51.920 Yeah, that's lateral thinking because it just it unlocks some equity. 0:10:51.920 --> 0:10:54.170 You know, you've got an asset that is not liquid 0:10:54.170 --> 0:10:56.210 and you can sell it and buy something cheaper and 0:10:56.210 --> 0:10:58.820 you've freed up some cash if you're in that situation, 0:10:58.820 --> 0:11:01.189 that you really need it. One last thing to consider 0:11:01.190 --> 0:11:03.590 on car insurance is the type of insurance that you get. 0:11:03.590 --> 0:11:06.140 So many people think you can only get comprehensive if 0:11:06.140 --> 0:11:08.839 you want to be good and be properly covered. But 0:11:08.840 --> 0:11:11.930 lots of people choose to take out a lower level policy. 0:11:11.929 --> 0:11:15.620 So we know that through our ktp slips, everyone is covered. 0:11:15.890 --> 0:11:18.350 You're forced to get that through your RJO in some 0:11:18.350 --> 0:11:20.630 states or you pay for it separately. In other states. 0:11:20.630 --> 0:11:22.850 That's going to cover you for medical bills. If you 0:11:22.850 --> 0:11:25.459 hit another person or you get injured, you personally, you 0:11:25.460 --> 0:11:28.580 know the people are damaged. If there's property damage in 0:11:28.580 --> 0:11:32.449 a car crash, your comprehensive cover will cover your car 0:11:32.450 --> 0:11:35.270 as well. If you know if for any damage, you 0:11:35.270 --> 0:11:37.819 can get lower levels of policy, which are called third 0:11:37.820 --> 0:11:41.179 party property damage, which doesn't cover your car. So you 0:11:41.179 --> 0:11:44.120 have to cover the cost of your car and fixing it. 0:11:44.210 --> 0:11:46.580 But it does cover you if you hit the porch 0:11:46.580 --> 0:11:49.880 or you hit the very expensive car and suddenly they're saying, hey, 0:11:49.880 --> 0:11:52.190 that's going to cost 100 grand to fix or whatever. 0:11:52.190 --> 0:11:56.510 So again, it's substituting for a lower level of insurance. 0:11:56.510 --> 0:11:59.839 But again, if it's really if you're in a tight situation, 0:11:59.840 --> 0:12:03.140 that's something to consider, that there are different levels of 0:12:03.140 --> 0:12:05.300 car insurance as well. And there's another one called Third 0:12:05.300 --> 0:12:08.060 Party Fire and Theft, which covers you if you hit 0:12:08.059 --> 0:12:10.010 the other person and if your car is in a 0:12:10.010 --> 0:12:12.650 fire or is stolen. So but doesn't cover you for 0:12:12.650 --> 0:12:15.950 damage to your car if you're in an accident. So insurance, hey, 0:12:15.950 --> 0:12:18.530 the wonderful world of insurance. I think it's not something 0:12:18.530 --> 0:12:20.600 anybody wants to have to think about, but we're the 0:12:20.600 --> 0:12:23.449 cost of living as it is. These are the big bills. 0:12:23.450 --> 0:12:26.719 These can add up to hundreds, if not thousands of 0:12:26.720 --> 0:12:29.480 dollars and is something that is worth spending a little 0:12:29.480 --> 0:12:32.120 bit of time investigating. What coverage you have and what 0:12:32.120 --> 0:12:33.020 coverage you need. 0:12:33.380 --> 0:12:35.300 Yeah. And I think just to sort of round off 0:12:35.300 --> 0:12:39.109 the car chat, I think Pony also mentioned that, you know, 0:12:39.230 --> 0:12:42.230 petrol is another expense, petrol sort of one of those 0:12:42.230 --> 0:12:45.080 sort of unavoidable expenses, right? Like, you know, it's always 0:12:45.080 --> 0:12:46.790 going to be expensive. We're never going to be happy 0:12:46.790 --> 0:12:48.670 about the amount of money we spend on petrol. Like 0:12:48.679 --> 0:12:52.040 it's never good. Obviously, you know, the, the common sort 0:12:52.040 --> 0:12:53.420 of thing is to shop around, get one of those 0:12:53.420 --> 0:12:55.610 apps that let you look at all the prices nearby 0:12:55.610 --> 0:12:57.770 you and make sure you're always getting the cheapest price 0:12:58.220 --> 0:13:00.260 unless you want to buy an electric car always an 0:13:00.260 --> 0:13:04.429 option you know could be there available these days if 0:13:04.429 --> 0:13:06.020 you want to save money on petrol, obviously that is 0:13:06.020 --> 0:13:08.390 an extreme choice. But you know, if you could do it, 0:13:08.390 --> 0:13:10.050 that would be a way to save money on petrol. 0:13:10.070 --> 0:13:12.500 Well, that's true. What's the best app in Victoria? I'm 0:13:12.500 --> 0:13:14.300 in New South Wales and Fuel check is the one 0:13:14.300 --> 0:13:15.790 you want to download. Yeah, the one Victoria. 0:13:15.870 --> 0:13:19.160 One I use is Petrol Spy. So the other thing 0:13:19.160 --> 0:13:22.339 that Tony mentions in his, in his message is that 0:13:22.340 --> 0:13:25.819 he spends around $2,000 a month ah for food for 0:13:25.820 --> 0:13:29.840 him and his family and I think that's, that seems 0:13:29.840 --> 0:13:32.090 like quite a significant amount of money. And he mentioned 0:13:32.090 --> 0:13:35.750 that this also covers, you know, all his grocery shopping 0:13:35.750 --> 0:13:38.780 and then eating out takeaway, all that sort of stuff. 0:13:38.780 --> 0:13:41.360 So yeah, food's again, one of those things is a 0:13:41.360 --> 0:13:43.190 bit like petrol, like you're always going to spend money 0:13:43.190 --> 0:13:44.810 on it. You're never going to be super happy about 0:13:44.809 --> 0:13:46.099 the amount of money you spend on it. But I 0:13:46.100 --> 0:13:47.780 think there are a few things you can do just 0:13:48.080 --> 0:13:50.030 to sort of cut those costs a little bit. 0:13:50.300 --> 0:13:52.520 Yeah, I've been tracking my food spending for a couple 0:13:52.520 --> 0:13:54.860 of years now and I think I average I was 0:13:54.860 --> 0:14:01.370 averaging about $450 per month to feed myself and my 0:14:01.370 --> 0:14:03.740 eight year old for he's with me half of the week. 0:14:03.740 --> 0:14:06.740 I think that has crept up though. More recently. I'm 0:14:06.740 --> 0:14:11.150 heading sort of 550. I had a $600 month, so 0:14:11.150 --> 0:14:16.010 I can definitely feel those rising prices at the grocery store. 0:14:16.010 --> 0:14:19.310 That is not a beat up. Those prices are really, 0:14:19.310 --> 0:14:22.850 really noticeable. So the eating out as well can get 0:14:22.850 --> 0:14:24.800 a little bit out of control, particularly if you're a 0:14:24.800 --> 0:14:30.140 busy family. I added up. I spent about $650 last 0:14:30.140 --> 0:14:34.250 month on like Uber Eats, eating out and restaurants. It 0:14:34.250 --> 0:14:36.560 was a bit of a YOLO kind of month. I'm 0:14:36.740 --> 0:14:39.200 I'm still YOLO going away until I'm still on my 0:14:39.200 --> 0:14:42.230 fixed low rate mortgage and I feel like it's coming. 0:14:42.230 --> 0:14:45.229 It's coming, but I haven't quite adjusted the spending yet, 0:14:45.230 --> 0:14:47.300 which is probably means it's my fault. Interest rates are 0:14:47.300 --> 0:14:50.000 still going up because the Reserve Bank is like, stop spending. 0:14:50.000 --> 0:14:52.010 And I'm like, Yeah, but not on eating out anyway. 0:14:52.340 --> 0:14:54.980 Stop spending. But not you, Jess. Not yet. 0:14:56.030 --> 0:14:59.030 So but this month we. I have got the sun 0:14:59.030 --> 0:15:01.850 on board. We're going to do a little experiment and 0:15:01.850 --> 0:15:07.610 it's no eating out March. And I introduced this concept 0:15:07.610 --> 0:15:09.350 to my son, and I said, I'll give you 20 0:15:09.350 --> 0:15:12.920 bucks if you just agree to this and get on 0:15:12.920 --> 0:15:15.650 board and don't whinge about it because kids whinge a 0:15:15.650 --> 0:15:17.510 lot and they're like, I want to have Macca's, I 0:15:17.510 --> 0:15:20.000 want to have pizza. And I've also promised him that 0:15:20.000 --> 0:15:23.270 I will start preparing like the meals that he loves. 0:15:23.480 --> 0:15:26.930 We order sushi on Uber, eats for an easy meal 0:15:26.930 --> 0:15:29.810 at night when I couldn't be bothered. So I've been making. 0:15:30.300 --> 0:15:33.150 We made sushi rolls on the weekend and they had it. 0:15:33.180 --> 0:15:35.400 How did that go? I think they're famously really easy 0:15:35.400 --> 0:15:36.000 to make. 0:15:36.030 --> 0:15:40.400 They were really bad, I think. My rice was like glue. 0:15:40.410 --> 0:15:42.960 It was like stuck together. And I think maybe I 0:15:42.960 --> 0:15:46.030 didn't rinse it well enough before I boiled it or something. 0:15:46.050 --> 0:15:47.820 Starchy. And you got to. Yeah. 0:15:47.820 --> 0:15:50.130 And you really want to wait until they're totally cold 0:15:50.130 --> 0:15:52.590 to serve because it was just a little bit warm 0:15:52.590 --> 0:15:56.520 and also crunchy and also glug. And we were not 0:15:56.550 --> 0:15:57.960 we were not sold on that one, but it was 0:15:57.960 --> 0:16:01.920 significantly cheaper. I also did prepare a mac, a fake 0:16:01.920 --> 0:16:05.220 McDonald's Happy Meal for my son. So I like I 0:16:05.220 --> 0:16:07.320 bought the mince, I mixed it with an egg. I 0:16:07.320 --> 0:16:10.830 made it into little patties. I had some brioche buns 0:16:10.830 --> 0:16:13.560 and I had the cheese slices and tomatoes. So I 0:16:13.560 --> 0:16:16.950 made the hamburger. We had the frozen chips and I 0:16:16.950 --> 0:16:20.370 also bought like sugar free coke from from the shops. 0:16:20.370 --> 0:16:23.850 And I spent the whole morning cooking this for lunch. 0:16:23.850 --> 0:16:25.950 And I added it up that it costs about like 0:16:25.950 --> 0:16:28.979 it cost me like $5 to make the meal. And 0:16:28.980 --> 0:16:32.370 a Happy Meal is only about $6 anyway. I think. 0:16:32.370 --> 0:16:35.130 So if you're going to try and fight for like, 0:16:35.130 --> 0:16:38.130 you know, cost plus price against Macca's, you're never going 0:16:38.130 --> 0:16:38.480 to win. 0:16:38.490 --> 0:16:40.800 No, I think they have like a significant economies of 0:16:40.800 --> 0:16:44.880 scale situation going on. So, you know, the advice is 0:16:44.880 --> 0:16:48.120 always to cut your food bills, cook everything at home. 0:16:48.120 --> 0:16:51.720 It's not always the case, although I think on average, 0:16:51.720 --> 0:16:54.120 you know, if you're not paying for the restaurants rent, 0:16:54.270 --> 0:16:57.810 labor costs, you know, tax overheads, whatever, you know, you're 0:16:57.810 --> 0:17:01.800 just buying the raw ingredients and cooking it at home, 0:17:01.920 --> 0:17:03.630 you know, And if you don't have anything better that 0:17:03.630 --> 0:17:05.879 you could be doing with your life than spending the 0:17:05.880 --> 0:17:09.629 whole morning cooking your fake McDonald's meals, it's either it's 0:17:09.630 --> 0:17:11.550 an option that's not a great example, but I do 0:17:11.550 --> 0:17:14.310 think it still holds that buying the fresh ingredients and 0:17:14.310 --> 0:17:16.290 preparing them at home is where you want to be aiming. 0:17:16.650 --> 0:17:18.780 One of my favorite things to do, and for context, 0:17:18.780 --> 0:17:21.810 I would say that I probably spend around $400 ish 0:17:21.810 --> 0:17:24.630 a month on food as just a single single guy 0:17:24.630 --> 0:17:30.030 living alone. That includes, you know, eating out. And, you know, 0:17:30.030 --> 0:17:31.560 Uber eats and all that. 0:17:31.560 --> 0:17:34.080 Sort of stuff. That's pretty good if it does include 0:17:34.080 --> 0:17:34.950 all those things as well. 0:17:34.950 --> 0:17:36.929 Yeah, I'm a big fan of sort of like the 0:17:36.930 --> 0:17:38.699 freezer meals and you get you buy like go to 0:17:38.700 --> 0:17:41.010 the Asian grocer and you get the big pack of like, 0:17:41.010 --> 0:17:42.720 you know, pork dumplings or something. You throw them in 0:17:42.720 --> 0:17:45.000 the freezer on the way home, you grab some Asian 0:17:45.000 --> 0:17:46.830 greens and you put it all on the on the steamer. 0:17:46.830 --> 0:17:49.560 And it's super simple, super easy. Like it's, you know, 0:17:49.560 --> 0:17:52.139 if you break it down, it's very cost effective as well. 0:17:52.140 --> 0:17:54.270 So like that's a way that you can sort of, 0:17:55.050 --> 0:17:57.510 I guess, you know, some low cost meals that aren't 0:17:57.510 --> 0:18:02.230 sort of super difficult. And I also think that like 0:18:02.250 --> 0:18:04.050 one of the things that I've sort of come around 0:18:04.050 --> 0:18:06.630 to recently, which I think is a real sort of, 0:18:06.869 --> 0:18:09.330 you know, me sort of finally saying goodbye to my 0:18:09.330 --> 0:18:14.400 youth is, you know, getting really on board with supermarket 0:18:14.400 --> 0:18:18.929 loyalty schemes. Yeah. You all started you all this is it. 0:18:18.930 --> 0:18:21.330 This is it. This is the beginning of the end. 0:18:22.260 --> 0:18:23.060 But like. 0:18:23.160 --> 0:18:25.889 You'll be reading things like, I now read things and 0:18:25.890 --> 0:18:27.900 I sort of hold them out a little bit further 0:18:27.900 --> 0:18:28.679 from my face that. 0:18:28.680 --> 0:18:31.710 I've started saying like, oh, as I got up from 0:18:31.710 --> 0:18:35.610 the couch. So like, you know, that's it. Yes. Audible groans. Oh, no. 0:18:36.180 --> 0:18:40.080 But the one of the things that you sort of 0:18:40.080 --> 0:18:42.629 begin to realize that if you do all your shopping 0:18:42.630 --> 0:18:45.629 at just one supermarket, right, like just a Coles, just 0:18:45.630 --> 0:18:47.820 a Woolies and we show we had any others that 0:18:47.820 --> 0:18:49.590 were worth mentioning, obviously Aldi, but they don't have a 0:18:49.590 --> 0:18:55.520 loyalty scheme that you. We'll get like a sort of 0:18:55.520 --> 0:18:58.670 really outsized rewards in terms of the amount of points 0:18:58.670 --> 0:19:01.159 you get back Those points convert into dollars. You know, 0:19:01.160 --> 0:19:03.200 you can save a bunch of money. So in Tony's 0:19:03.410 --> 0:19:07.490 message to us, he mentions that, you know, Coles and Woolworths, 0:19:07.490 --> 0:19:10.639 which implies that his family shops across both. So if 0:19:10.640 --> 0:19:14.060 you've got a $2,000 a month spend on on food, 0:19:14.720 --> 0:19:17.150 you know, I would say at least 1500 of that 0:19:17.150 --> 0:19:19.490 or maybe a thousand of that is going to be groceries. 0:19:19.490 --> 0:19:22.100 If you shop just at one of those supermarkets and 0:19:22.100 --> 0:19:24.860 redeem your loyalty every single time, you're going to start 0:19:24.859 --> 0:19:26.900 seeing some savings there. So that would be something else. 0:19:26.900 --> 0:19:29.000 I would say just sort of really sort of focus 0:19:29.000 --> 0:19:32.780 your spending and then maybe supplemented with something like an 0:19:32.780 --> 0:19:35.720 Aldi shop, right? Like get all your basics at Aldi 0:19:35.990 --> 0:19:37.970 and then get everything else you don't like. All the 0:19:37.970 --> 0:19:40.129 specialty sort of items from from a Coles and Woolworths. 0:19:40.130 --> 0:19:42.350 I think that's a great way to sort of, you know, 0:19:42.350 --> 0:19:44.359 just trim a bit of fat around the edges and 0:19:44.359 --> 0:19:46.369 get get some reward for it when it comes to 0:19:46.369 --> 0:19:47.720 your weekly shop. Yeah. 0:19:47.720 --> 0:19:50.300 And a specific program I think is worth mentioning, although 0:19:50.300 --> 0:19:53.060 it's not an endorsement of Woolworths, but Woolworths does have 0:19:53.060 --> 0:19:58.130 an everyday extras program which you pay $59 per year 0:19:58.130 --> 0:20:01.340 to subscribe to it, but it entitles you to 10% 0:20:01.340 --> 0:20:05.270 off one shop every month. So you know, if you 0:20:05.270 --> 0:20:07.970 do so I have now started, I will do that 0:20:07.970 --> 0:20:10.640 as my first shop of the month, we tick over 0:20:10.640 --> 0:20:13.520 to 1st March, whatever it is, and I'll jump on. 0:20:13.520 --> 0:20:16.370 I also shop now online because I find that that 0:20:16.369 --> 0:20:19.040 avoids the temptation of just throwing everything that I see 0:20:19.040 --> 0:20:21.560 into the basket and I can be really strategic and 0:20:21.560 --> 0:20:25.340 the websites will let you order your search for something 0:20:25.340 --> 0:20:28.520 and then search for it by unit price listed the 0:20:28.520 --> 0:20:30.770 cheapest listed at the top. So it'll show you the 0:20:30.770 --> 0:20:32.840 home brands first and you can still scroll down and 0:20:32.840 --> 0:20:34.610 get your more expensive brands, but it's just a little 0:20:34.609 --> 0:20:36.920 prompt to go, Well, maybe I can just go for 0:20:36.920 --> 0:20:40.460 the cheaper home brand. So I'm finding shopping online very 0:20:40.460 --> 0:20:42.950 effective and then I try to buy as much as 0:20:42.950 --> 0:20:45.350 I can in that one big shop at the start 0:20:45.350 --> 0:20:47.750 of the month, get the 10% off. I sort of 0:20:47.750 --> 0:20:50.840 did a $300 shop, get the $30 off, which is 0:20:50.840 --> 0:20:53.060 nothing to sniff at, which was stuff I was going 0:20:53.060 --> 0:20:55.910 to buy anyway. And you can do that every month. 0:20:55.910 --> 0:20:58.490 So in about two months I already made back the 0:20:58.490 --> 0:21:01.369 cost of the program. So and then for the rest 0:21:01.369 --> 0:21:05.060 of the ten months, you're into discount territory. So pretty 0:21:05.060 --> 0:21:07.310 good everyday extras. 0:21:07.520 --> 0:21:09.770 Absolutely. And those, you know, especially if they're freshly launched, 0:21:09.770 --> 0:21:12.020 they will do anything to get new customers in. So 0:21:12.020 --> 0:21:14.000 sometimes you can make big old, big savings. 0:21:14.550 --> 0:21:17.150 And looking out for just the 50% things that are off. 0:21:17.150 --> 0:21:19.670 You can also on the websites, Coles and Woolies, you know, 0:21:19.730 --> 0:21:20.990 shop the specials. 0:21:21.859 --> 0:21:25.580 Absolutely. So hopefully there's some practical tips in there for 0:21:25.580 --> 0:21:28.399 our listeners and for Tony as well. You know, if 0:21:28.400 --> 0:21:30.710 you're thinking about your insurance, make sure you review your 0:21:30.710 --> 0:21:34.010 excesses and look at what your insurance is covering you for. 0:21:34.250 --> 0:21:36.470 You know, there's a ways to sort of cut down 0:21:36.470 --> 0:21:37.910 some costs there. Yes. 0:21:37.910 --> 0:21:39.889 And I still think it is worth shopping around the 0:21:39.890 --> 0:21:42.290 insurance policies, as boring as that may be. Just set 0:21:42.290 --> 0:21:44.719 aside half an hour on a weekend to hit up 0:21:44.720 --> 0:21:47.719 some websites and see what else is out there for 0:21:47.720 --> 0:21:50.030 your car and home insurance. The same sort of rules 0:21:50.030 --> 0:21:52.400 apply for home insurance of reviewing your coverage and your 0:21:52.400 --> 0:21:56.149 excesses and shopping around. Yeah, and food. You know, I 0:21:56.150 --> 0:21:59.820 feel like that's a it's hard. We have to eat, Tom. 0:21:59.840 --> 0:22:02.150 Everybody has got to eat. So, you know, it is 0:22:02.150 --> 0:22:04.489 hard to have to see those prices going up all 0:22:04.490 --> 0:22:07.370 the time. I think the message from the Reserve Bank 0:22:07.369 --> 0:22:11.450 is very strongly stop eating out, stay at home, eat 0:22:11.450 --> 0:22:15.859 your baked beans, don't have your Shiraz and your Wagyu, which. 0:22:15.859 --> 0:22:17.960 Was I mean, I was never having Shiraz and Wagyu 0:22:17.960 --> 0:22:18.740 in the first place. 0:22:19.010 --> 0:22:22.580 Either. You got to have mints and tap water only 0:22:22.580 --> 0:22:25.250 these days and hopefully Aldi wine. 0:22:25.310 --> 0:22:25.760 Yeah. 0:22:25.770 --> 0:22:29.240 So that's an Aldi wine is actually really good. Yeah, 0:22:29.240 --> 0:22:32.660 I will say that it's actually worth a try. So yeah, 0:22:32.660 --> 0:22:35.270 I think it's the spirit of the times and we 0:22:35.270 --> 0:22:37.250 can all sort of tighten the belts a little bit 0:22:37.250 --> 0:22:40.540 and hopefully that will be enough to sort of, you know, 0:22:40.640 --> 0:22:42.260 the whole point is that we were going to the 0:22:42.260 --> 0:22:44.870 shops too much and paying too much and not sort 0:22:44.869 --> 0:22:48.020 of complaining about the prices. And so the shops are 0:22:48.020 --> 0:22:49.850 able to put the prices up. There needs to be 0:22:49.850 --> 0:22:52.310 some sort of push back. And we are supposed to 0:22:52.310 --> 0:22:56.720 be being more cautious and being more discerning in what 0:22:56.720 --> 0:22:59.510 we pay for things. So if you're feeling that pressure, 0:22:59.510 --> 0:23:02.360 you're definitely not alone. There's definitely pressure there. 0:23:02.600 --> 0:23:06.530 Absolutely. But yes, hopefully some of these things help you and, 0:23:06.530 --> 0:23:09.109 you know, join us next week for the final episode 0:23:09.109 --> 0:23:12.290 in our six part series of everyday budgets. Still send 0:23:12.290 --> 0:23:14.810 them in. We're still we're still keen to to, you know, 0:23:14.990 --> 0:23:17.390 hear from you guys always it it all adds up 0:23:17.390 --> 0:23:20.990 at Nine.com.au. But as always, thanks for listening. 0:23:21.290 --> 0:23:22.250 See you next week. 0:23:27.400 --> 0:23:29.530 This episode of It All Adds Up was produced by 0:23:29.530 --> 0:23:32.920 Chai Wang. The information discussed is general in nature and 0:23:32.920 --> 0:23:36.040 does not take into account your personal financial situation, goals 0:23:36.040 --> 0:23:38.890 or objectives. You should always do your own research or 0:23:38.890 --> 0:23:42.879 get professional advice before making any major financial decisions. If 0:23:42.880 --> 0:23:45.310 you like today's episode, hit follow on your podcast app, 0:23:45.310 --> 0:23:47.649 Leave a review and recommend it to all your friends. 0:23:47.680 --> 0:23:50.440 You can also submit your listener questions in text or 0:23:50.440 --> 0:23:55.270 audio form at. It all adds up at nine.com.au. Thanks 0:23:55.270 --> 0:23:55.929 for listening.