If you're trying to work out how to handle the rising cost of living in Australia, then you're not alone. The cash rate rose from 0.1% to 3.1% in 20221, while inflation continues to rise. People across the country are feeling the pinch following the increased prices of essential goods and services.

However, there are ways you could handle the rising cost of living. Budgeting may help you prioritise your spending and prepare for unexpected costs in the future, while refinancing your home loan may lower your repayments. Proper planning now could prevent nasty surprises down the road.

How can I keep up with the rising cost of living?

1. Explore different energy deals

Do you know if you're getting the best deal from your energy provider? The cost of energy is rising, so it pays to be informed. Websites like Energy Made Easy could help you compare energy and gas deals so you're saving as much money as possible.

2. Buy groceries online

Walking into a grocery store can be confronting, especially if you're shopping on an empty stomach. Shopping online allows you to see exactly how much you're spending on groceries, while also giving you the chance to take full advantage of the specials. It's a win-win.

3. Talk to those around you

Managing the rising cost of living doesn't have to be a solitary experience. Leaning on your community, even just to talk, can help you put things in perspective.

4. Prioritise the things that matter

When times are tough, cutting back on luxury spending can make a big difference. Making the hard decisions now can help you going forward.

5. Get your debt under control

If you have debts that are causing you anxiety, it may be worth considering how you can clear those debts in 2023. Debt consolidation could help you get things under control, especially if you're dealing with multiple sets of fees and multiple interest rates.

6. Reach out to financial experts

If you want help developing a plan to manage the rising cost of living, then it may be worth speaking to a financial expert. They may help you assess your current financial situation and provide tangible advice to improve things in 2023. If you're struggling and need to speak with a financial counsellor, you can call the National Debt Helpline on 1800 007 007. They provide financial counselling services at no cost to help you get back on track with your finances. 

7. Set a budget

Budgeting might not sound like the most fun idea, but it's one of the best things you can do to manage the rising cost of living. If you're looking to learn how you can budget effectively, then read on.

What are some ways to budget effectively?

Creating and sticking to a budget could help you build your savings and make the most of your income. It's easy to lose sight of your expenses if you're not tracking them, so budgeting may help you create good financial habits. Some ways you can budget effectively include:

1. Be realistic

Don't lie to yourself when you're setting a budget. Setting unrealistic savings goals, or pretending some expenses don't exist, will only hurt you in the long run. Assess your financial situation and be honest about where you're currently at (as well as where you'd like to be).

2. Set a spending limit

Feel like you spend too much on non-essentials? Work out how much you can comfortably spend each month and set that as a limit.

3. Calculate your expenses

Bills, groceries, insurance, travel and other expenses can add up each month. Work out how much you spend each month so you can work out what's left at the end of each month.

4. Set a savings goal

Want to buy a new car, move house or do some renovations? Set yourself a monthly savings goal that you are confident you can meet, so you can work towards your next big purchase/investment.

5. Review your budget every month

Your budget won't always reflect your financial situation. Review your budget each month and update it with new income/expenses that occur so you're always on the right track.

6. Account for unexpected expenses

Life happens when you least expect it. Include a buffer for unexpected expenses (like flat tires and home repairs) so you don't get hit by any surprises.

7. Consider using software to help

Technology could help you budget more effectively. Consider using our budget planner calculator to keep you on track each month.

Is it worth switching banks if I'm looking to earn more on my savings or refinance my home loan?

Switching banks gives you the peace of mind that you're getting the best deal for yourself. While the cash rate has risen, as has inflation, so too have the interest rates for savings accounts. This means you may be able to get more return on your savings. However, it's important to read the fine print before you make any financial decisions, as everyone's financial situation is different.

If you're looking to make a switch, we offer competitive savings accounts that could help boost the interest that you earn on your savings. Our QSaver is a great option as it offers a competitive interest rate, with $0 account keeping fees, no minimum balance required, and interest is calculated daily and credited to your account on the last day of the calendar month. You can also accumulate Qantas Points* with our Qantas Points Saver while enjoying a competitive interest rate with $0 account keeping fees.  

Alternatively, if you're looking to refinance your home loan, we offer a range of home loans to suit your situation. Whether you're looking for a low variable interest rate, instant redraw, split home loans or something else, we have a suite of home loan options that may suit your current situation.

It's important to factor the rising cost of living into your decision-making but remember: there are many things you can do to make the most of the times ahead.

Call us on 1300 747 747 to talk to us about our savings or home loan offerings, which could help you manage the rising cost of living.