Money management in 2023 – our top tips

Managing your personal finances is more challenging than it has ever been. According to NAB, the number of Australians suffering financial stress is at a three-year high, as households struggle with the rising cost of living and interest rate hikes.

Read on for our top 7 money management tips to help make your financial life easier.

1. Draw up a budget (and stick to it)

If you don’t already have a budget to help you with your money management, you’re making it harder than it needs to be.

Your budget should reflect how often you get paid (e.g. weekly, fortnightly or monthly). It should have two columns. On the left hand-side, list your weekly, fortnightly or monthly income. On the right-hand side, list all your expenses. Aim to eliminate or reduce any non-essential expenses so that you have money left over in your budget.

You should always aim to save at least some of your income every week, fortnight or month. A great way to do this is to pay yourself first. In other words, set up a direct debit from your everyday account into a savings account. The income you have left over should be enough to cover all your expenses.

Once your budget is in place, make sure you stick to it!

2. Get a better deal on your electricity or gas

It’s no secret that both electricity and gas costs have increased over the past year or so, and they are forecast to continue rising.

But the good news is that you can do something about your electricity costs by shopping around. The electricity market in Australia is highly competitive and different providers will often offer attractive deals to secure new customers. It’s easy to search for the latest offers online.

There’s nothing to stop you changing electricity or gas providers every year if you want to. Loyal customers usually don’t get the best electricity and gas deals.

3. Save on groceries

The price of groceries has also risen sharply over the past year on the back of rising fuel costs and natural disasters. But there are simple ways that you can cut down on your weekly grocery costs, including:

• Making a weekly meal plan and basing your shopping list on it. Don’t deviate from the list when you go shopping. Avoid buying impulse items.
• Getting familiar with the prices of items you regularly buy so you know whether they are currently overpriced or not, such as fruit and vegetables after natural disaster events. Avoid them or look for substitutes if possible when they are.
• Keeping an eye on weekly specials and bargains. Stock up on non-perishable items to save money in the long run.
• Not buying pre-prepared meals. It’s usually cheaper to make your meals from scratch yourself.

Groceries are a significant weekly expense in any household budget, so if you can save money there, it will really help with your overall money management.