What are your top three budgeting tips?

With the Federal Budget upon us, my News Corp Gen Y column recently asked for three household budgeting tips. Now I have to admit that I do enjoy watching the Federal Budget – I’m not sure why. But if you’re more interested in your own budget than the Federal one, here are three budgeting tips that won’t need to be negotiated through an uncooperative Upper House.

Consolidate your superannuation funds

Given that you may end up paying more tax on your superannuation earnings down the track, it makes sense to at least keep track of what you have. According to tax office statistics, there’s currently around $14 billion of lost superannuation sitting in the ATO coffers, waiting for the rightful owner to put in a claim. If you suspect that you’ve ever lost track of any super, then visit the ATO website or read this article for more details on how to find lost superannuation.

Compare Super Funds with CANSTAR

Make a grocery shopping list

Yes it sounds mundane, but food is one of our biggest weekly costs. According to research by ASIC’s MoneySmart, the average young couple without kids spends $207 on food (excluding alcohol) per week. Alcohol adds another $41 to that weekly bill. Cutting your grocery costs by 30% would put an extra $3,200 in your pocket each year.

How can you cut your supermarket spending?How can you cut your supermarket spending?

 

Check your mortgage interest rate

For some reason we get really excited when the RBA cuts the official cash rate – but in a recent Canstar Blue survey of 2,200 adults, 40% admitted that they don’t shop around for their mortgage. Guess what? That could be costing you hundreds. There’s an almost two percent difference between the highest and lowest variable home loan rates on the CANSTAR database. On a $400,000 home loan that potentially equates to more than $400 per month.

Compare Home Loan Rates with CANSTAR

So give the tips a go. You’ve got nothing to lose and potentially a lot to gain. Probably more to gain, in fact, that you’ll get from this year’s Federal Budget.

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