Wuh-oh! Expensive Christmas? Here's how to triage your budget for January 2023

Girl thinking about her budget

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

Girl downloading a budgeting app from the cloud

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

Woman cringes at foods she can't afford, collage

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

Collage of hands holding smartphones

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

Hand holding a sparkler, collage

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.

Compare energy plans

Find energy plans available in your area.

Revamp your savings account

Hand deposits a speech bubble into a piggy bank, collage

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

Collage of people working from home in their houses

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.

Compare high-interest savings accounts below. Subscribe to our newsletter Moneyzone for weekly insights and tips.

Compare high interest savings accounts

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 252 savings accounts.
Last updated 15 December 2024 Important disclosures
  • 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.^

    Compare
    Details
  • 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.

    Compare
    Details
  • 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.

    Compare
    Details
  • 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.

    Compare
    Details
  • 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.

    Compare
    Details

^See information about the Mozo Experts Choice Savings Account Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.