SACRIFICE OR SAVE? 5 Tips On How To Cope With Rising Living Costs
Australia is a great country and I am blessed to be able to call Australia home. However, it has one of the highest cost of living in the world, especially if you are in Sydney. Prices seems to be increasing every year, with the most recent one being the health insurance premiums. Unless you have been living under the rock, you would have known by now that the premiums of health insurance are set to rise by an average 5.59% this year! Say whaaaaa?
“Shit, I will have to give up X, Y and Z in order to afford my health insurance now”
That’s usually the first reaction or response most give when it comes to dealing with increasing premium. I am a firm believer of compromising and making some adjustments rather than sacrificing or giving up something completely - both in health and fitness and in life.
I am a Qualified Chartered Accountant in my past life but that doesn’t mean my finances have always been order. I have my financial stress and went through similar issues like many of you too - living from paycheck to paycheck, spending outside my means (my credit cards got quite a good workout) as well as struggling to keep up with rising living expenses! I think I have lived through my teenage years and early 20s (god, I sound old!) to learn a few practical tips or two on how to be more prudent with your money!
5 Tips On How To Cope With Rising Living Costs
Aim to do a financial audit on your transaction account every 3 months to review what’s coming in and what’s going out. You may end up finding that you are still paying for stuff that you no longer need. Please bear in mind that not all (auto-debit) repayments stop taking money out of your account once your term of contract is over. I had to go through the ordeal of cancelling my account and requesting for refund after I have paid in full as the auto-debit was set as perpetual.
COMPARE THE SHIT OUT OF EVERYTHING
Yes, comparison is the provider of joy in this instance. Compare the shit out of every services you are paying for. Do your research, compare all the rates available for that particular service you are looking for, and make sure you are getting the best deals in the market! Don’t be afraid to renegotiate a new rate with your existing provider or switch to a new provider. Never set your health insurance on auto-renew. One of the great things about being in a competitive market is - you are more accessible to competitive rates.
ESTABLISHING NEW SHOPPING ROUTINE BY SHOPPING AROUND
Food expenses takes up a huge chunk of our weekly expenses and I mentioned in my Eating Healthy on a Budget post to do some research on where you buy your grocery. You’d be surprised on how much you can save per week by shopping around without having to compromise on quality.
Establish new shopping routine by buying most of your fresh produce and poultry from your local grocer and deli as they are generally cheaper and fresher too! Then, move on a discount supermarket (such as ALDI) to buy your pantry and non-perishable items. Most of the time, you should be able to tick off 95% (if not 100%) of your grocery list here. Leave the larger chain supermarket as your very last option to grab the remaining items. I have personally saved up to 20% on my weekly grocery expenses just by establishing this shopping routine.
CHANGE YOUR MINDSET
Rather than feeling frustrated thinking you are sacrificing the quality of your life, change your mindset and think of your lifestyle change as making a saving instead! We all know how manifesting and law of attraction works - start focusing on all the savings you made from all the cost-cutting initiatives.
BE PREPARED TO MAKE SOME ADJUSTMENTS TO YOUR LIFESTYLE
As mentioned from point #1 to #4, start making some reasonable adjustments to your life will help ease the pinch on your bank account a little. Try to eat in at least 70% of the week and save eating out/ takeaway till the weekend; have dinner parties and/ or potluck on the weekend instead of wine and dine at a bar; make researching and comparing your second nature - they will all help with increasing your savings and reduce the likelihood of having to sacrifice something completely!
I hope the tips above give you a good guide on how to cope with rising cost of living and agree with with Save over Sacrifice too! Balance is always the key! You don’t have to give up eating out/ holiday or downgrade your lifestyle in order to afford health insurance - make sure you have done your homework and only cover for services you need. Start comparing the providers on Compare The Market now to find yourself the best deal before the premium rate rises!
So tell me, have you sacrificed anything to make up for the rising health insurance premium in the past? Share your experiences with us. Also, if you have any great tips on coping with rising cost of living don’t forget to share them below too!
This is a sponsored post in collaboration with Compare The Market. We only work with aligned and amazing brands and products we love!
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