As the cost of living continues to climb in Australia, many households are searching for practical ways to reduce expenses without sacrificing quality of life. The consumer group CHOICE has outlined eight straightforward strategies that could collectively save Australians more than $13,000 in 2025. These tips range from energy efficiency to smarter shopping habits, proving that significant savings can be achieved with small, mindful changes.
Unplug to Save: Energy Efficiency at Home
Energy costs have been a major concern for Australian households, with 79% of residents expressing anxiety over rising electricity bills in 2024. One surprising culprit? Electronic appliances that consume “passive power” even when not in use.
By switching off devices like wireless routers, microwaves, and televisions at the PowerPoint, households can save up to $240 annually. Additionally, ensuring homes are well-insulated and using energy-efficient appliances can lead to even greater reductions in electricity costs.
Switch Insurance Providers and Unlock Savings
Many Australians stick with long-standing insurance policies without realizing they could save significantly by shopping around. CHOICE experts suggest comparing health, car, and home insurance providers for better deals:
- Health insurance: Switching to a smaller fund could save up to $1,870 per year.
- Car insurance: Motorists could pocket savings of $330 annually in the Australian Capital Territory alone.
- Home insurance: Depending on location, households can save between $1,000 and $4,665 by choosing alternative insurers with competitive rates.
Rethink Laundry Routines
Simple changes to laundry habits can result in meaningful savings. Washing full loads with cold water, using less detergent, and swapping the dryer for a clothesline could save a household nearly $450 annually. Cutting out fabric softeners could add another $77 in savings each year.
Brew at Home: Coffee and Drinks
The allure of daily coffee runs might be tempting, but the costs quickly add up. Making coffee at home, including the price of equipment, ingredients, and maintenance, is significantly cheaper. On average, home-brewed coffee costs $1,284 per year, compared to $3,504 for café-bought alternatives. This shift alone could save $2,200 annually. Similarly, using a soda maker for sparkling water can shave off an additional $420 each year.
Compare and Conquer: Energy and Grocery Shopping
Energy retailers often attract customers with low introductory rates, only to increase prices later. CHOICE advises switching energy providers after initial offers expire to save up to $350 annually. Similarly, splitting grocery shopping between retailers like Aldi, Coles, and Woolworths could reduce food expenses by up to 20%, or approximately $1,861 per year.
Strategic Grocery Planning
Rather than sticking to one supermarket for convenience, spreading out your grocery shopping and taking advantage of specials across multiple stores could lead to significant savings. By comparing prices on essential items, families can better manage their budgets while still enjoying quality products.
