How to manage the cost of living crisis and keep your financial goals on track
Struggling to keep up with rising costs? With a few smart moves - like an expense audit and a cash flow strategy - you can take back control of your finances and stay on track for your long-term goals.
Feeling the pinch from rising expenses? You’re not alone. Australia’s cost of living crisis has left many households struggling to keep up as basic necessities climb in price. But with a little planning and a proactive approach, you can regain control of your finances and still work towards your long-term goals.
Where is your money going?
Let’s break down where most of the budget goes for Australian households today:
- Housing: Rising interest rates and rent increases mean housing costs are higher than ever, eating into monthly budgets.
- Groceries: The average small family spends around $200 a week, though that can vary greatly depending on preferences. If your grocery bills seem eye-watering, you’re not alone—many of us are feeling the pinch.
- Childcare and education: Whether it’s early learning centres or private schooling, these costs continue to rise, leaving parents with significant outgoings.
- Fuel and transport: Getting from A to B isn’t cheap, especially with rising petrol prices, rideshare expenses, and parking in capital cities.
- Utilities: Electricity, gas, and water bills are also rising, making it seem like there’s no escape from rising costs.
It’s no wonder managing money can feel overwhelming. But you can take steps to ease the pressure.
Why an expense audit is worth it
Sometimes, the issue isn’t just rising costs—it’s fees and charges sneaking into your budget without notice. It’s easy to stay on autopilot when it comes to expenses, but those quiet fee hikes can add up quickly.
A quarterly expense audit can help you stay on top of your outgoings and find areas to cut back. Here’s how to get started:
- Check your subscriptions: Do you really need all those streaming services or app memberships? Cancel anything you’re not actively using.
- Review “future use” items: If you’re holding onto services or memberships “just in case”, it might be time to let them go.
- Evaluate financial products: When was the last time you reviewed your home loan, savings account, or insurance premiums? Switching providers could save you significantly—but make sure you’re not sacrificing coverage or benefits in the process.
Grab a coffee, your bank statements, and some quiet time to dive into the details. It may feel like a chore, but the savings could surprise you.
Moving from overwhelmed to empowered
It’s easy to feel buried under the complexity of financial decisions, but the good news is that with the right systems in place, you can simplify the process and feel back in control. Automating your cash flow and setting up regular investments can ease the stress of day-to-day budgeting while ensuring you build long-term wealth.
When working with clients, we use tools to streamline expense tracking and cashflow management, helping create a system that’s easy to maintain and leaves room for wealth creation.
Take the next step
If you feel stuck or unsure where to start, let’s talk. We can review your finances together, identify opportunities to save, and develop a cash flow strategy that works for you. Managing your money doesn’t have to feel like a constant battle—let’s make it simple.
Get in touch today to start your journey to financial clarity.
The information and advice contained on this webpage and website has been prepared for general information purposes only and does not take into account your personal objectives, financial situation or needs. It is not intended to provide commercial, financial, investment, accounting, tax or legal advice. You should, before you make any decision regarding any information, strategies, or products mentioned on this website, consult a professional financial advisor to consider whether it is suitable and appropriate for you and your personal needs and circumstances. Product Disclosure Statements contain information necessary for you to make a decision whether or not to invest in financial products mentioned on this website. You should also obtain and read this document prior to proceeding with any decision to purchase a financial product. Although every effort has been made to verify the accuracy of the information contained in this document, Engine Financial Services, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this document or any loss or damage suffered by any person directly or indirectly through relying on this information.
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