She's On The Money - Community-Tested Cost of Living Hacks

Episode Date: October 8, 2024

Living through the cost of living crisis doesn’t mean sacrificing your joy. In this episode, we’re sharing our community’s best-kept secrets for saving money without losing the little things that brighten your day. From grocery tips to rethinking your phone plan, these smart strategies will help you keep your wallet happy and your lifestyle intact! We'd LOVE you to vote for us for the listeners' choice awards at the Australian Podcast Awards.  Vote here (Voting closes on Oct 10.) Acknowledgement of Country By Natarsha Bamblett aka Queen Acknowledgements. The advice shared on She's On The Money is general in nature and does not consider your individual circumstances. She's On The Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs.  Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN - 321649 27708,  AFSL - 451289.See omnystudio.com/listener for privacy information.

Hello, my name is Natasha Nabanunga-Bamblett. I'm a proud Yorta Yorta, Kernai, Wolperi and Awadjeri woman. And before we get started on She's on the Money podcast, I would like to acknowledge the traditional custodians of the land of which this podcast is recorded on Awadjeri country, acknowledging the elders, the ancestors and the next generation coming through. As this podcast is about connecting, empowering, knowledge sharing and the storytelling of you to make a difference for today and lasting impact for tomorrow. Let's get into it. She's on the money. She's on the money.

welcome to she's on the money the podcast it's all about making your dollars stretch further than your favorite pair of yoga pants that's really far it's my favorite yoga pants made it through a whole pregnancy. Holy dooly. That sounds very like you did stretch that, but objectively it didn't look like the case. Literally and physically. Just want you to know that. But with the cost of living crisis squeezing your wallet tighter than ever, you've already cut out your daily coffees, unsubscribed from those extra streaming services and feel like your belt can't get any tighter. If you're feeling helpless, you're not alone. And today we are here to tell you it's not personal failure. Now, I couldn't talk about

money really without bringing the queen of budgeting herself, Victoria Devine. Oh, hello. It's not like I didn't interject myself into this conversation earlier. You mentioned yoga pants and I was like, this episode, it's for me. It's absolutely for me. I'm here for it. And I feel like everything when it comes to talking about the cause he lives is really negative at the moment. I feel like everything is doom and gloom and we don't want it to be. I want to make sure that we are being positive at the same time as trying to manage our finances. Finances can be overwhelming and uninspiring and they can make you feel like trash sometimes, Bec, but I think that we need to do a bit of a reframe and I hope that

this episode is the episode for that. I think we're all kind of in a similar situation right now. I think there are some people that it's not as hard on, but regardless of where you are financially, things are getting more expensive. So obviously we hear about Cozy Lives on the daily, but should we start with what it actually is? So basically the cost of living crisis happens when prices go up faster than our paychecks do. Things like groceries and rent and fuel, they all get more expensive, but our wages, they just don't keep up. That gap makes it so tough for people to maintain their standard of living. And the big culprits here are inflation supply chain and the fact that demand for goods has absolutely skyrocketed, Bec.

Oh my God, it's scary, hey? What about the state of the world right now? Is that making things worse. Are you asking for an economic update, Bec? Is that okay? Oh, obviously. Global events have played a really big part in this crisis. So if you think about how the COVID-19 pandemic threw absolutely everything off balance and supply chains worldwide ended up messed up. When factories in China ended up getting shut down, it didn't just mean fewer electronics on the shelves. It also caused delays and price hikes for stuff like toys and furniture and even building materials. We also can't forget about the impact of global politics, like the ongoing war in Ukraine. It's pushed up the cost of things like oil and food all around the world, Bec. The

World Bank says that because of the war, prices for basics like wheat and sunflower oil have absolutely gone through the roof. And we're feeling it here in Australia as well, especially when it comes to how much we're paying in the supermarket. Bec, when was the last time you bought olive oil i went to buy olive oil a couple of weeks ago and it was so expensive olive oil not part of my journey anymore no it's really not and i was like sunflower oil that sounds healthy i'm gonna go with that canola i'll take it you know what we're not even gonna google those things i totally get that though and i feel like everybody is feeling it but i feel like oil for me was the one thing. I saw it and I was like, this can't be right. This is a typo. And Bec, let's move away

from oil. Let's talk about numbers for a hot second. Recent data from the Australian Bureau of Statistics shows that inflation hit 6.1% by June 2022, which is the highest we have seen in 20 years. What does that mean for us though? Basically, literally everything costs more. So groceries, fuel, everything back. For example, bread went up by 7.5% and fuel prices shot up by over 30% in just one year. And I feel like our entire community is feeling it. Totally. Between May 2022 and November 2023, the Reserve Bank of Australia raised interest rates 13 times, driving their cash rate to a 12-year high of 4.35%. These interest rate hikes were a direct response to inflation, which peaked at around 8% in late 2022. While the increases were intended

to curb inflation, they've significantly raised the cost of borrowing for households, particularly those with mortgages. The impact on Aussie households has been pretty brutal, let's be honest. On average, families now have $10,700 less each year to spend on discretionary items like dining out and holidays. Mortgage holders have been the most affected though, with their discretionary spending being reduced by $21,300 compared to 2020. Renters have also experienced a considerable reduction of $13,300 in non-essential spending, while homeowners without mortgages have seen a decrease of $7,200. I'm not done yet either, Bec. Low-income households have been particularly affected. For those lowest 20% of earners, essential expenses such as groceries

and utilities now exceed their income by an average of $75 a week. They're going into debt, Bec. This has led to significant reductions in discretionary spending and delayed essential purchases. The prolonged financial strain has resulted in substantial lifestyle adjustments, including cutting back on clothing and groceries and making really tough choices when it comes to managing finances. Far out. It is scary. And I know it's the reality of the situation, right? Like it is what it is and we're out here trying our best to help you through it, but we just need to get on the same page. Totally get why people are feeling the pinch, especially those who are like already on lower incomes, when your essentials cost more than you actually make each week,

it's impossible to not feel the pressure. And it's stressful. It's so stressful. Absolutely. And it's so easy to start blaming yourself, thinking that like, I'm not good at money or I've done something wrong. But let's be absolutely clear here. It is not your fault. There's an immense amount of societal pressure to keep up with the rising cost of living. And when it becomes overwhelming, you know what we do, Bec? We naturally turn inward. But the truth is we're living in a system where the cost of essential goods like groceries, rent and fuel keeps climbing and wages, they're not catching up. No matter how hard you try, there's only so much control that you can have. We really need to shift the narrative away from

individual responsibility and understand this is a broader economic issue. People are doing absolutely everything that they can to keep up. The problem is that the system we're in currently isn't set up for that. So, if you're feeling really guilty or you're stressed about your finances, I need you to remember that this is bigger than your budgeting skills. It's not about failing. It's about surviving in an environment that has become more and more challenging for everyone. I think that it's not going to surprise anyone, but you really need to look at exactly where your money's going. And I know right now that's really painful. I know that it's not what you want and you want to bury your head in the sand, but I want you to get a fine tooth comb

and I want you to go through your finances. And I mean everything from those sneaky little app subscriptions to the quick trips to the shops where you pick up extras when you don't need to, when you were there just to get some milk. I want you to get clear on where all of those small amounts are dripping away because they add up and they add up so fast. They call them money leaks. And once you've spotted them, you can decide what's really necessary and what's just here draining your bank account, Bec. Absolutely. And there are like apps that you can use to like find those subscriptions that you've forgotten about. And how many podcasts have we done where we're like, okay, cool. This is how you call your

subscriptions. This is how you do this. This is how you do that. And I think the one thing I want you to remember is that before you dive in, it's not about restricting yourself. It's actually about getting an idea of what the bigger picture looks like. Let's have a look at the bigger picture and see if we're comfortable with it. Let's see if there's any shifting to do. Let's see what that looks like. Because if you get rid of it right now, Bec, doesn't mean it has to go forever. Maybe you just want to build up a bit of an emergency fund to feel a little bit more comfy and then revert back to the way that you were spending. I totally get it, but I think that we just need to approach it a little bit differently. Big thing here is do not feel guilty about

anything. Don't feel guilty about wanting to indulge and maybe you're in a really stressed out situation because you're financially not doing too well. Just don't feel guilty. This is not on us. This is just the state of the world. We all have those small purchases that slip through the cracks. 100%. And the good news, Bec, is that once you identify them, it's super easy to make adjustments that give you so much more control of your money. And that's empowering. Like today, I'm going to get all Marie Kondo on you because if you've seen my drawers, all my yoga leggings are like folded perfectly. And we're going to do that for your finances. If these things don't bring you joy, it's time to toss them out. And do you know what I saw on TikTok the other day,

because I'm chronically online, Bec. So someone was saying that Marie Kondo doesn't work for them. I get it. Cause like they go through and they're like, oh, but like I'm a little bit of a hoarder and I just need that. Maybe I'll need it later. And someone did a stitch, Bec. And they said, all right, I'm going to teach you the dog poo method. Have you heard of the dog poo method? No, I have never in my life. Okay, so if dog poo got on that item, would you clean it and save it or would you toss it out? Yes, I did hear about this.

That is such a good. So the dog poo method, if the Marie Kondo method isn't going to work for you and there was dog poo on that item, would you just throw it out or would you clean it and save it and look after it anyway? Oh, that's a really good way to look at it. Yeah, because there are so many things that I would just yeet straight out if it had dog poo on it but like I would probably second guess about keeping in my house and recently that has been working for me so like I don't know if that helps other people but it helped

me so I thought I'd share it so sorry what's the Marie Kondo method so Marie Kondo is if it doesn't spark joy in your life it is time to remove it from your life of course of course right so things like those sneaky subscriptions that you don't even remember signing up for or don't live up to the hype let's go into our iPhone settings and into our Google Play account and just get rid of them. Press pause and do it right now. Like literally, press pause on this podcast. Go have a look. I'm gonna wait. We'll wait right here. We'll wait. We'll see you on the flip side. Okay, I'm gonna do it too. What about the things that do make you happy or you do need? And these two things aren't mutually exclusive. We're not here to rain on your parade. Times are tough enough as

it is and we still need to enjoy life. So if they make you happy, I want you to ask yourself, is there a cheaper swap that could work just as well? And we know in our She's On The Money community. It's full of savvy individuals. So I actually asked them for you for a little bit of help on this episode. So after the break, let's get clever about our spending together. Yay. Okay, everyone, we are back. And before the break, you promised us some clever cost of living hacks. I did. I set myself up for success because I asked the She's On The Money community when I put up the post in our Facebook group. And if you're not in there, what are you doing? I'll link it in the show notes for you. You need to join us. The post got so many

people just putting the comment F in there to follow the post. So I know that this is one that all of you have been wanting. And one of the biggest reoccurring themes, Bec, no surprise, it was food. I totally get it. We need it. Meat is definitely one of the more expensive items in our grocery carts. And it's no surprise when you consider that according to the University of Newcastle, Australians spend around 15% of their weekly food budget, Bec, on meat alone. That can add up and it can add up really fast. But our community have some super clever ways to make it stretch without cutting it out completely. I know there are so many people that are going to be like, a meal's not a meal unless there's a big source of animal protein. So, for example,

you can bulk up your meals by adding cheaper ingredients, like you could add some lentils or some mushrooms. They blend super easily into dishes. I've been doing it in spag bol. I also do like a grated zucchini and a carrot. I feel like a zucchini and a carrot grated have the same volume as mince, but cost me like a dollar. Yes, that's so true. Legit money win. They blend into dishes so easily so you can still get the flavor of the meat, but at a fraction of the cost. And as a bonus, you're getting some sneaky veggies in. You're making your meals healthier as well. Another the spa tip, Bec, is to buy larger cuts of meat, like a roast and slow cook it. True, yes. I love coming home to like a slow cooker smell. That way you're going to get multiple meals from the one

cut. Think leftovers for sandwiches, tacos, or even meal prep for the week. And if you're looking for some extra savings, maybe consider a meat box, which often offer a variety of different cuts at a lower price. Plus you can get some freezer portions for later, making it easier to plan and budget. These small tweaks can really help make your grocery dollars go further without sacrificing your favorite meals. I think too often, Bec, we're always looking for like a budget version of your favorite meals and you're like, well, I don't really like lentil tacos. But like you could use lentils to beef up your tacos, meaning that you still get your favorite foods, but it's more cost effective. Yes, exactly. And with the slow cooker thing, isn't it so nice?

It's so wholesome. To just chuck everything in a pot. Honestly, objectively, and I know this is universal, the slow cooker is the hardest thing to clean ever in the entire world. Oh, my gosh, I know. Did you know you can buy slow cooker liners? How do you do that? I mean, they're probably not that cost effective.

But, like, if that's the biggest issue for you at this point in time, it's just good to know that exists. That is so good to know. So, V, when it comes to saving on groceries in general, I love this. Hannah says she looks at the lower and higher shelves for the cheaper price per kilogram. She says the eye height is usually the most expensive. Oh my gosh, it's so true. Have you ever watched one of those documentaries on supermarket marketing?

They're all over YouTube. That's a good activity for tonight. Look up supermarket marketing documentaries. There are so many of them and it's all about the layout, like how all of the fresh food and the milk's at the back and all of the stuff that you don't actually need is in the middle of the supermarket but you have to walk through it oh my gosh it is so clever so clever and of course the she's on the money community are loving the supermarket rewards programs at the moment and getting their monthly 10 off shop and saving up their points for christmas time

beck and we are all stocking up and buying in bulk when those big ticket items are half price which beck i love a half price moment love a bargain i love when you say that something's 50 off you think this is a good money win but then i don't know about you it sets me up to expect it next time. And so next time that item is not on sale, I'm like, what is this? Maybe that's a good thing to do. I'm a TikTok master. You know this. There's a dude on TikTok who tracks when the sales are going to happen. And I think we need to drag some of that content over, obviously giving him credit, but like sharing when things are going to go on sale. That's really clever. I do notice some things are always half price, you know, back rat knives, for example. Housewise house

always clearance. I don't know. How can they afford to always be on sale? Is that their marketing strategy? It must be because I feel like the half price is what they're actually worth, but you're buying it because it's like, oh my God, that's so cheap. I know. Anyway, that's why I just don't go shopping. I can't set foot in Chadston because it's a slippery slope for me. It really is. Should we talk about one of the biggest budget killers when it comes to food? Yes. And you know what it is, Bec? It's food waste. Yes. The average Aussie household bins about $3,800 worth of food each and every single year. To me, that is insane. Storing your food properly is of course going to help with that. And Angel swears by the Tupperware fridge

smarts. I hadn't ever heard of these. She says she bought them like 20 years ago and uses them religiously. She says she almost never wastes fresh food anymore, Bec. Oh man, that is so good. This is like a subtle plug, obviously not a paid sponsorship from Marley Spoon, but my food waste, Bec, has gone down so significantly since getting Marley Spoon because I'm just ordering the meals that I'm cooking. And because they're also pre-bundled together, I can see them. I know that they're there and I know I'm going to cook them. It's not forgetting that there's a zucchini in the bottom of the fridge. I can't remember what that was for. I don't know. It has just been a game changer for us. Obviously, I have a code for you.

Use the code VICTORIA and you'll get up to $235 off your first five boxes. Bec, I did the maths and obviously this is a bit of a money win. Like if you're not into it, don't do it. I order Marley Spoon every week. I do three meals for two adults and get enough for our baby as well to have like, you know, a little bit of a sneaky snack on the side. And I worked out if you use the code VICTORIA, it becomes $38.34 delivered next week for your three dinners of groceries.

That is extraordinary. That's actually a good deal. So I thought I'd just drop this on the pod because we're obviously talking about saving money. And like, even if you just try it, like it's not a subscription, you can just go, oh, I have one box and try it and see if I like it. And if you don't like it, don't stick to it. And that's your groceries. Yeah. A hundred percent. Beck, I have been using Marley Spoon since 2017. So like I'm committed. Anyway, let's get back to the show because it wasn't meant to be about Marley Spoon, but I just thought in that moment, I could save you some

money. Have I got a deal for you? Yeah. And I have noticed that too, like there's no wastage. Oh, it's so nice. I think that's really great because it's like they only give you what you need for your recipe. Yeah, and a lot of people used to be really worried about like the plastic and all of the stuff. I know, I do worry about that. Yeah, they don't do that anymore. It comes in a paper bag and like literally there'll just be like an onion and some tomatoes at the bottom of the bag. Like they don't package them up.

I would say the only thing they package up is things that you have to package up and you would get in packages at the supermarket already. Like, if there are, like, capers or something, they're in a container. Or if you're getting, like, herbs, like, the herbs would get smushed if they're not in a container of their own. Yeah. But all of it, I just chuck in my recycling money away. Yeah, and you can save those little containers. A hundred percent. Also, if you hoard the boxes, you can put them on Facebook Marketplace and someone will come and get them for free when they're moving.

Yes. Is what I did last time. Great moving boxes. Because, like, everyone loves a free box. I don't know about you. Bloody oath. Anyway, anyway, so back to the pod. Yes.

Okay, should we move on to some other smart ways to save? Yes, and I mean, let's move away from food and let's talk about the things we all just accept as kind of a given, things like your phone plan and your internet bills. We tend to think of them as non-negotiable, right? But the truth is you can get real creative here. So take Lucy's tip from the group. She's ditched her internet bill completely. Whoa, how?

She got a phone plan with unlimited data and now just hotspots her laptop and her TV. Oh, clever. Obviously, she lives in a good area and probably has good, you know, 5G, no more separate internet costs. And I think that's genius, right? She's already paying for data. So why not just use it to its full potential? With the average internet bill monthly being $75, Bec, she's saving under $1,000 a year

for that. Oh my God, that's so good. How good. And then we've got Chloe, who's really got her phone built down pat. She and her partner were previously with Telstra paying $100 each a month. Oh my gosh, so spino. that's $200 a month on phones. It's too much. They have now switched to a family plan with Audi Mobile paying just $55 a month for both of them. For both of them. Saving $1,750 a year

just by making a simple switch. I feel like so many people in our community are always talking about phone plans. And I believe that Audi Mobile actually uses the Telstra network. Yeah, they do. So that's extra smart. It's the same thing. Exactly. And these are costs that we all think of as completely unavoidable. But as Lucy and Chloe have showed us, you can totally rethink them. It's about asking yourself, oh, do I really need this big expensive plan that I've been on for years just because I can't be bothered looking for an alternative? And then finding smarter, more affordable alternatives. And I mean, what a better time to do this than now coming into Christmas. Bec, we all want a little bit more wiggle room. Absolutely. Our community is so

smart. They are actually geniuses. This is why I just community funded this episode. I was like, tips and tricks from me. No, tips and tricks from the community. Written by everyone. Exactly. And they're even finding smart alternatives to the gym. According to World Fitness Australia, the average gym membership here costs around $70 a month. And that's excluding additional services like if you've got like a personal trainer. Yes. Unrelatable. Or you're doing like extra classes. But get this, almost a quarter of people with memberships don't utilize their memberships as anticipated. So even though people are paying almost a grand for something a year, than not even using it. Very relatable. One of our community members, Fiona, told us she ditched

her expensive membership and has switched to using the Sam Woods app on her phone at home. Not only is she saving money, but she's actually working out more, which is a double win. I love that, Bec, because I've actually just started that because I had every intention of returning back to Pilates or gym classes and I couldn't find the time and then I didn't want to do it. I'm not going to lie. When your gym class is at 5.30 and you're telling me I could pick my kid up early from daycare. Yeah. I'm going to pick my kid up. I'm sorry. So I've been going home and doing my workouts there. Anyway, back on track, Danielle has started doing free yoga and Tai Chi at her local library instead of paying for classes at a studio, saving 25 bucks a class. What? I

didn't even know that was a thing. Yeah, I didn't know that was a thing. That is so cool. It It definitely is worth looking around your local community to see what alternatives there are to a traditional gym because, you know, there's also there's like, you know, park gyms. I don't know if anyone uses those. I know, I've seen them and I love that idea. Also, YouTube yoga. Yes.

Oh, I love it. You can literally anything. Really? Okay, what else have we got? All right. So a lot of our community members are praising the ideas of going back to cash for everyday spending. When you pay with cash, you experience something called payment pain.

I think you'll be able to relate to this because I definitely can. It's that little sting you feel when you have to physically hand over a crispy note, which makes you more mindful of your spending. And studies have shown that people tend to spend less with cash because they can literally see their money disappearing. Yes. And Georgie has gone back to the basics and she's started asking herself that simple, but really powerful question.

Is this a want or is it a need? Now, there's actually some science behind this. when we pause to question a purchase, it actually engages our prefrontal cortex, the part of our brain responsible for decision-making and impulse control. By taking a really good moment to reflect, we can actually override those instant emotional decisions we sometimes make when we're tempted by something shiny and new, which, Bec, I'm really good at. I'm basically a bowerbird. It's shiny. I want it. I need it, which is why I'm always telling you guys to put 24 hours between you and your spending because that's basically me

reminding myself to do that every single time I say that. Yes, great idea. Michaela from the group has started to rethink spending by calculating how much work time it costs her. So, instead of seeing a price tag, she's asking herself how many hours she'd need to work at work to cover that. So, for example, let's say you're craving like $70 worth of Uber Eats, which let's be honest, Uber Eats nowadays is $70. It's not crazy. It's so annoying. Historically, I'm like, maybe uber eats like it's a special treat but in my head it's like 40 it's not it's yeah that might seem reasonable to you but if it takes you two hours of work to earn that money you might start to wonder is that actually worth it is like dinner worth two hours of my hard-earned host tax cash

back like do i want to do that do you know what eggs just got way more appealing oh my god oh i Have an eggs on toast for dinner, underrated. Vegemite and butter on toast, delicious. Oh, an elite dinner. Cool dinner, Bec. Actually, really makes you think twice. Sometimes it's less about money and more about how much of your time you're trading for that purchase. That's true.

Which is, yeah, such a good way to look at it. So, Bec, as you can see, in times of crisis, we really need to get clever and a little bit smart with how we're approaching our spending. There are definitely some smart ways to cut costs and still keep the things that bring you joy. Of course, we should be thinking about ways to generate more income. let's be honest we need to be asking for that pay rise or tackling our debt a little bit more aggressively and we're going to deep dive into those strategies in the coming weeks but for today my friend it is all about finding those small clever hacks that can make a really big difference whether it's switching your phone plans or bulking up your meals with cheaper

ingredients or going back to cash to stay more mindful with your spending it's all about finding ways to take control in a tough environment beautifully worded that is exactly right and And what's great is these tips aren't about depriving yourself. No, we're not about that life. We're about enjoying the journey. Absolutely. It can be kind of fun, like challenging yourself a little bit. But they're about being smart with what you have and you can still enjoy your life.

Even when things are tight, it's just a matter of making a few tweaks to stretch your dog further. 100%. If you want the complete rundown of the cost of living hacks, head to our Facebook group and add your own. And if you're hungry for more savvy saving episodes, don't forget to hit that subscribe button. I think it's a really good place to leave it. oh perfect place to leave it have a really beautiful rest of the week guys and we will see you on friday bye guys the advice shared on she's on the money is general in nature and does not consider your individual circumstances she's on the money exists purely for educational purposes

and should not be relied upon to make an investment or financial decision if you do choose to buy a financial product, read the PDS, TMD and obtain appropriate financial advice tailored towards your needs. Victoria Devine and She's On The Money are authorised representatives of Money Sherpa PTY LTD ABN 321 649 27708 AFSL 451 289. Thank you.