Five ways to make your money count for more in 2023: New year financial resolutions
Money moves you can make now that could save thousands next year
2 February 2023
- Comparing services and switching could save you $6,619 on average in the new year
- Mortgage holds could save $3,780 on average by switching to a better home loan rate
- $1,194 could be saved on average by switching to the best value NBN provider
- Comparing and switching car insurance and moving to a low rate credit card could also result in a couple hundred dollars in savings
It has been a stressful end to 2022 for many Australians with high inflation and back to back rate hikes but with the new year just around the corner it’s a good time to get on the front foot and make some changes to the big expenses. Mozo has crunched the numbers and found five money moves that you can do now to make your money count for more in 2023.
“Health and wellness might be the most common new year’s resolutions but there are signs that 2023 is going to continue to be a challenging year economically, so it’s a good idea to build up your financial confidence now by reviewing your expenses and trying minimise the cost of these outgoings,” says Claire Frawley, Mozo Personal Finance Expert.
Investing a small amount of time reviewing your finances in the new year could have a massive impact on your financial position by the end of 2023. Mozo has come up with five simple money moves that could see you bank $6,619 in savings across a range of existing household and personal finance products:
1. Refinance your home loan and you could save up to $3,780 on average
If you haven’t refinanced your variable home loan, then now is the time to compare home loan rates. This could save you $3,780^ a year based on an average $400,000 loan paying principal and interest over 25 years. Mozo found the average variable interest rate for an owner occupier was 5.47% compared to just 4.24% if you switched the leading rate.
2. Banking a better NBN provider can save you $1,194 a year
Next time you switch on the TV, challenge yourself to review your home internet plan while watching that series. It’s easy to set and forget your home internet plan but with more than 100 NBN providers offering services in Australia, comparing and switching could save you $1,194 on a NBN 50 plan. Some of the best deals are from the smaller providers, rather than the big brands we all know, so look out for Flip, Internode and Exetel.
3. Driving home a better deal on your car insurance can save you $696
Analysis for the Mozo Expert Choice Car Insurance Awards found a huge price difference between comparable car insurance quotes. If you are looking to save, Mozo found an average difference of $692 a year after comparing quotes from 55 car insurance providers. From the colour of your car to where you park at home, many factors drive up the price of your premium, so if you’re interested in knowing more about how your premium is calculated, we have the report for you.
4. Switching to a low rate credit card could save you up to $567 on average
If you are carrying a balance on your credit card, switching to a low rate credit card could save you $567 in the next 12 months on a balance of $4,000 at 7.49% compared to a 20% interest rate credit card.
5. Tapping into a high savings rate of up to 3.75% could earn you $382
While rising interest rates have added pressure to mortgage customers, savers can finally earn more on their savings. By banking the leading base savings rate of 3.75% instead of the average 0.87% on a $10,000 balance over 12 months you could earn $295 in additional interest.
“The cost of everything has skyrocketed this year, so when you have a little bit of free time, it’s a good idea to see if you can find some savings and make your money count for more.”
“No matter the bill or service, if you haven’t switched in the last two years, then chances are you are paying too much. Putting in a little bit of effort now can help set yourself up to have a financially care-free 2023.”
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^Saving based on the Mozo database owner occupier home loan average variable rate of 5.60% compared against the leading 4.24% offer, over 25 years on a $400,000 balance, fees and charges not included in calculations. Rates collected on 20 December 2022