Seven daily habits and expenses you might not realise are costing you money
It isn't just planned expenses that impact budgets but also small expenses and hidden fees and charges that eat away at our bank accounts.
"Life is busy and we all get caught up with the daily grind," Christine Lusher, Lush Wealth financial advisor says.
Nine.com.au spoke to seven finance experts to find out to the daily habits we might not realise are costing us money.
Small purchases as well as hidden fees and charges eat away at our bank accounts. Getty
Reduce "little" spending habits
Lusher suggests taking a close look at "the little spending habits" and how they impact "the bigger picture".
"Our spending is the same, habits set up a decade ago will reman unless you consciously break them," she says.
Alec Renehan, co-host of the Equity Mates podcast also recommends examining how often you buy coffee "rather than making it at home" and how much UberEATS you order. He also suggests "cancelling unnecessary subscriptions".
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Lacey Filipich, founder and director Money School, says she "usually finds everyone has at least one subscription they're not really using – streaming services and gym memberships being commons ones."
Téa Angelos, founder & CEO Smart Women Society, adds: "Small expenses may seem insignificant every day, but they can really add up over time. $13.40 a day adds up to over $5,000 in a year."
Are you in the right house for your needs?
Lusher says it pays to think about your living situation to ensure it is meeting your needs.
"Can you downsize?" she asks. "Or can you purchase a smaller home to begin with? A smaller mortgage or rent is going to make a big difference to your cash flow."
"A smaller mortgage or rent is going to make a big difference to your cash flow." Getty
Larger purchases
All spending including cars and holidays "can wait", according to Lusher who suggests delaying car upgrades and downgrading holidays.
Filipich also recommends it is "best to look at your big ticket items that you use daily" such as housing, energy, transport, insurance, and "aim to get better deals there".
One way to manage this is to "rent instead of buy".
When it comes to purchasing items such as caravans, Lusher suggests renting is a much better choice than buying.
"Do you need to own one?" she asks. "Or could you just rent one for the six weeks you can handle being in a confined space on wheels with your partner?"
Mindful spending is recommended by money experts. Getty
Check interest rates on your savings accounts
Renehan suggests checking the interest rates on savings accounts.
"Over a year, the difference between those two accounts could be hundreds of dollars. That'll pay for plenty of take-away coffees."
Beware credit card use
Sarah Megginson, personal finance expert at Finder, says most people forget about the surcharges that come with credit card use.
"Paying with a card on your phone or device, so many places charge one to two per cent credit card and processing fees these days and even though cafes and bars and restaurants are legally meant to give you advance notice, many of them don't," she says.
"So you tap an order for $22, but it actually charges you $22.44. That may not seem like much, but multiply that fee 10 times a week, 52 weeks a year, and you're wasting hundreds of dollars."
Surcharges on Visa, Mastercard and eftpos will be banned from October 1, 2026.
Most people forget about the surcharges that come with credit card use. Getty
Reduce food waste
Jennifer Richardson, founder and director 123 Financial Group and Got Money Honey, urges Australians to look at how much food they are wasting each year.
"In Australia each household wastes between $2000 and $2500 per year," she says. "That is the easiest way to save money without actually doing anything.
"Keeping raw bones or vegetable offcuts to make your own soups or stock is a great money saving idea among other things."
Look for ways to use your leftovers to prevent food waste. Getty
Change your mindset
Julia Scott from Love Luck Wealth says a "mindset focused on lack is disempowering". She says instead of focusing on "cutting back expenses" look for ways to "make more money".
"Cut backs are demoralising and reinforce a lack mindset which is not good for your earnings vibration," she says. "There's also a limit to how much you can cut, whereas your earning potential is limitless.
'Cut backs are demoralising and reinforce a lack mindset which is not good for your earnings vibration.' Getty Images/iStockphoto
"There's always another way to make money. For example, it's a lot easier and more empowering to negotiate a $2,000 raise than cut back $2,000 in living costs. Plus, that raise continues to come to you for years to come."
Filipich agrees adding, "It's only a waste if it doesn't meet an essential need or bring you satisfaction. So that depends on what you consider essential, and on what you enjoy."
The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
