Erin and her husband spend $2521 every single week. But there’s room in her tight budget for savings

No matter how tight your budget may be, more often than not there is room to save.

Finance author Joel Gibson is an expert at uncovering the hidden savings in a family’s weekly bills.

That’s exactly what he did for this family of four.

Erin*, 35, lives with her husband and two young daughters in Sydney’s south and the couple work hard to give their children everything they need – and it comes at a huge price.

The average weekly family expenditure is $2,521.

Of course, a huge part of that is their mortgage payments.

Erin and her husband also pay a lot to have their children in daycare, which allows them to work full-time to support those payments.

After looking at Erin’s accounts, Gibson found that loyalty could really work in her favor.

He recommended shopping around for other insurance policies, energy plans and telecom plans, as years of being with the same company can mean a lot of savings elsewhere.

If that doesn’t work, he also says Erin could threaten to switch to other brands in an attempt to get better deals, especially when it comes to her mortgage.

We got Gibson to take a look at the family’s weekly bills, and he gave some helpful tips for cutting some of their expenses.

In total, Erin’s weekly bills total $2,521 per week.

Auto and Home Insurance: Save Thousands – Potentially

“Insurance is a big bill — when you add in their home, contents and car coverage, it’s over $4,350 a year,” Gibson said.

“It’s also rising faster than any other bill at the moment: the ABS says the average increase over the past year has been 16 per cent. If that happens this year, they will pay over $5,000.

“The good news is that they have been with the NRMA for 18 years for motor insurance and five years for home insurance.”

Loyalty can work in their favor, he said, because the longer you’re with a company, the more likely you are to get a better deal.

“This is because of ‘price gouging’, where insurers increase premiums for loyal customers year after year,” Gibson revealed.

“For example, I recently helped a man who had been an NRMA customer for over 20 years save 54 per cent on his car insurance.

“So I would get offers from brands like Budget Direct, Youi and Suncorp.

“Give them a call, tell them you’re looking to change three policies, email them the renewal slips and ask what’s the best deal they can do.”

Energy: Save over $500 per year

“There’s a box on the front page of their electricity bill that says ‘based on your past usage, our Flexi plan (Home) could cost you up to $391 less per year than your current plan,'” notes Gibson.

“This ‘better deal message’ is now mandatory in most states – retailers must tell you if you’re on their cheapest plan.

“The problem is: they seem to have dropped that cheaper plan in February – and the one they’re using now is costing them more!”

Joel recommends asking their provider if it’s better to go back to the old plan.

But they can save even more if they’re willing to move, he said.

A search on solar plan comparison site Wattever shows that several retailers currently have cheaper solar plans for them at over $500 per year.

“Her Aldi Mobile plan includes 25GB per month for $29 and is one of the cheapest on the Telstra network,” Gibson said.

“However, there are potential savings by switching to the Optus or Vodafone networks.

“A number of providers are offering prices similar to Aldi’s plan plus 50 per cent or more off for 6-8 months, as this search on telco comparison site Whistleout below shows.”

Erin said their internet speed isn’t ideal right now, so the family might want to opt out.

“They also pay $80/month for standard speed NBN from Vodafone. Plans at the same speed start at around $60 for the first six months, rising to around $80 after that,” added Gibson.

“But they’re not happy with their internet performance, so maybe it’s worth looking at 5G home internet as well, which starts at around $50, then goes up to $65 after six months.”

Swimming Lessons: Save up to $200 per year

“Some health funds, including Erin’s, allow you to claim back up to about $200 a year for swimming lessons as part of your policy, so check to see if that’s included in yours,” Gibson said.

Fee Relief: Save up to $800 per year

Anyone in NSW who has not yet checked whether they are eligible for a road tax reduction can do so on the Service NSW website.

Eligible drivers can claim a 40 per cent rebate of up to $750 in the 2022-23 financial year and up to $802 in the 2023-24 financial year.

Claims for the financial year 2022-23 close soon on 30 June 2024.

“An interest rate of 6.14 percent is pretty good, but there are interest rates as high as 5.80 percent,” Gibson explained.

“A good start is always to call your lender, tell them about some lower rates you’ve seen and ask if they can match it.”

An example of an email or phone call is: “Hello, my name is _______ and I have been a customer for ______ years. I just noticed that my interest rate was 6.14 percent per annum and now there are interest rates of 5.90 percent per annum with CBA and discounted home loans. So I’m considering switching – but just thought I’d make a call to see if you can find it before I request a mortgage release form. What is the best price you can offer me for a stay?”

The information provided on this website is of a general nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal goals, financial situation or needs. Before acting on any information on this website, you should consider the relevance of the information to your goals, financial situation and needs.