Wuh-oh! Expensive Christmas? Here's how to triage your budget for January 2023
After the combined tidal wave of Black Friday and holiday shopping, many Aussie bank balances may be cringe-inducing. And the cost of living this year looks like it won’t be much better.
So, whether you’re recovering from a spending spree, embracing a New Years’ resolution, or just want a bit of cushion, here’s how to revamp your emergency budget for January 2023.
Download a budgeting app ASAP
Firstly, to know how to revamp your budget, you need to know where you’re leaking money. But if creating a spreadsheet fills you with existential horror, let an AI do the work for you with a smart budgeting app.
Link it up to your bank account (don’t worry, they take privacy seriously) and let the bots trawl through all your data. Once the app creates a report, you can see where your expenses are going, how much they’re eating into your paycheck, and what you can do about them.
Remember, budgets aren’t there to hinder your spending and make you poor – it’s the other way around. They empower you to spend wisely and buffer your finances.
Cut back on grocery shopping and dining out
Grocery prices have been eye-watering lately, so it’s essential to lean into the summer season and shop smarter down the aisle. Buy locally and seasonally where you can: now’s the time to be a bit adventurous with the cheaper produce on sale. Learn a new recipe or two!
Meal-prep and take food to work so you’re not tempted to buy from a cafe. Ask your mates if you can do a potluck picnic instead of brunch (which can add a little sunny magic to your weekend hangouts).
Subscribing to a meal-kit service can reduce the amount of planning and shopping you have to do and control your weekly spending. You can even order cheap, fresh fruit and vegetables through services like Farmers Pick.
Rethink your streaming services
Keeping up with the endless stream of content can be exhausting – and expensive. So if you’ve subscribed to everything under the sun, decide which services you use the most and cut the rest loose for now. Most providers will let you pick up where you left off if you change your mind later.
Need help determining which streaming sites to pick? Here’s what’s new on each of the major platforms.
HOT TIP: Your local library will usually let you borrow or stream some movies for free through Kanopy , and ABC iView is free for everyone with an account.
Compare energy providers
Summer can be hellish for your energy bills, especially if you’re running the aircon to cope.
Power down the price surges by switching off non-essentials during the day. Invest in automatic timers to switch off non-essential devices while you’re away at work (or at night when you’re asleep). Stopping little bits of ghosted power can add to savings in the long run.
Next, triage how you cool down your place. Fans use less electricity than an aircon, and opening your windows for the evening breeze is free. Avoid turning on the oven (that’ll make your home even hotter), and opt for chilled, fridge-based fresh meals instead. Crisp, cold tomato and ham sandwich, anyone?
Lastly, compare energy providers to ensure you get the best deal for your area.
Revamp your savings account
All the extra cash won’t do you any good if it’s parked in the wrong place. Have a look at your savings account and make sure you’re meeting any terms and conditions to get the top bonus rate. If you’re unhappy with it, compare savings accounts to see if switching could nab you a better deal.
Alternatively, you can remove the temptation to spend leftover cash by locking it away in a short-lived term deposit. Many 6 to 12-month interest rates have sharpened thanks to the RBA rate rises, so at least savers can take advantage of what’s happening in Australia’s monetary policy.
Take a look at your home loan
Lastly, if you have a home loan, you’re likely reeling from all the rate rises in 2023 (totalling 3.00% worth of hikes from the RBA alone).
The big banks predict we’ll likely see another 0.50% - 0.75% worth of hikes by May 2023, so there’s still a way left to go.
If you have an offset account, funnel as much of your savings into it as possible to cut down on the amount of payable interest on your mortgage. Consider making extra repayments if you can, too, since this also saves on your interest repayments later. Now’s also a good time to call your lender and see if you can negotiate a better rate.
Still not happy? Consider refinancing your mortgage in 2023: a little headache now could save you a lot of heartache later.
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Compare high interest savings accounts
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Mozo experts choice awards won:
- High Interest Savings - 2024
Savings Maximiser
5.50% p.a. (for $0 to $100,000)
0.55% p.a.(for $0 and over)
Yes up to $250,000
Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Maximiser
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 5.50% p.a. (for $0 to $100,000)
- standard interest rate
- 0.55% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- For customers who deposit $1000 from an external source into a personal ING account (excluding Orange One and Living Super), make 5 eligible transactions and grow their nominated Savings Maximiser account each month so there is more in the account at the end of the month than there was at the start of each month (excluding interest). The total bonus interest rate is available on balances up to $100,000 on one Savings Maximiser the next month after meeting eligibility.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must be linked to an Orange Everyday transaction account to receive the bonus rate. Where multiple Savings Maximiser Accounts are held, the bonus rate is only applied to one nominated account.
Read reviews and learn more about ING savings accounts
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Bonus Saver
5.00% p.a. (for $0 and over)
0.50% p.a.(for $0 and over)
Yes up to $250,000
Bonus interest for the first four months from the account opened date. No minimum balance required. No monthly or ongoing fees or withdrawal penalties. Manage your money easily via phone or online banking or via the BCU Bank app.
CompareCompareBonus Saver
Bonus interest for the first four months from the account opened date. No minimum balance required. No monthly or ongoing fees or withdrawal penalties. Manage your money easily via phone or online banking or via the BCU Bank app.
- Maximum rate
- 5.00% p.a. (for $0 and over)
- standard interest rate
- 0.50% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening.
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read reviews and learn more about BCU Bank savings accounts
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Bonus Saver Account
5.00% p.a. (for $0 to $250,000)
0.05% p.a.(for $0 and over)
Yes up to $250,000
Deposit at least $20 each month and make 5 Visa Debit transactions with a linked Glide account.
Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.
CompareCompareBonus Saver Account
Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.
- Maximum rate
- 5.00% p.a. (for $0 to $250,000)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read reviews and learn more about MyState Bank savings accounts
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MoneyMAX Account
No Current Offer
4.70% p.a.(for $1 and over)
Yes up to $250,000
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
CompareCompareMoneyMAX Account
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
- Maximum rate
- No Current Offer
- standard interest rate
- 4.70% p.a.(for $1 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- n/a
- Access
- BPay, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Branch access for deposits only.
Read reviews and learn more about Unity Bank savings accounts
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Smart Saver Account
4.50% p.a. (for $0 and over)
0.05% p.a.(for $0 and over)
Yes up to $250,000
Increase account balance by any amount and make no more than two withdrawals
Work towards your savings goals with this account. Earn bonus interest when you grow your balance and make no more than 2 withdrawals each month. Earn a guaranteed standard rate of interest each month on your savings. No monthly account keeping fees to pay. Use the app or internet banking to manage your account 24/7.
CompareCompareSmart Saver Account
Work towards your savings goals with this account. Earn bonus interest when you grow your balance and make no more than 2 withdrawals each month. Earn a guaranteed standard rate of interest each month on your savings. No monthly account keeping fees to pay. Use the app or internet banking to manage your account 24/7.
- Maximum rate
- 4.50% p.a. (for $0 and over)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Increase account balance by any amount (excluding interest) and make no more than two withdrawals in the month
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read reviews and learn more about Newcastle Permanent savings accounts
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^See information about the Mozo Experts Choice Savings Account Awards
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