6 Ways To Save Money During Challenging Times

July 06 2021

"There is little reason to stay loyal to different service providers anymore if they can't save you money!" - Jesse Lee, Digital Product Manager

Article written by Ava Crawford at Mozo

Mozo has crunched the numbers and come up with six ways you can set yourself up to save thousands when the world returns to normal.

“Using lockdown to get on top of your personal finances could really pay off,” says Mozo spokesperson, Tom Godfrey. “So, whether you start surfing for a better lender or drive home a better insurance premium, the doom and gloom could be your ticket to a brighter financial future.”

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Mozo has come up with six simple ways you can save money across a range of existing products and services during lockdown and beyond:

1. Refinancing your home loan instead of pausing payments could save up to $3,926 on average

Although you might be tempted to ask your lender to pause your repayments during lockdown, a better option might be to take the time to compare home loan rates.

Mozo found you could save $3,926 a year - based on an average $400,000 loan, paying principal and interest over 25 years - by getting the best rate possible in the Mozo database and not pausing your repayments

2. Compare car insurance policies and reduce the kilometres you’re driving.

Given the stay at home orders and travel restrictions many Australians are faced with, you could reduce your premium by calling your insurer and cutting back the kms you're driving.

If your insurer isn’t willing to give you a better deal, Mozo’s Experts Choice Awards analysis revealed average price differences of $902 a year between quotes for comparable cover.

3. Consolidating your debt to a personal loan could save you up to $822 over 12 month

It’s a good time to assess any debts you have.

If, for example, you are carrying a balance forward on your credit card, managing a buy now, pay later debt and a payday loan, consolidating a $10,000 debt to a personal loan with a rate of 5.75% could save you $822 in the next 12 months.

4. Logging in to a better NBN provider can save you $710 a year

With the kids home for school holidays and many people working remotely, the home internet is going to take a beating.

Mozo found that by comparing the NBN services on offer and switching, you could save $710 on an NBN 50 plan. So shake off any big brand loyalty you might have and check out offers from providers such as Tangerine Telecom, Mate and Belong.

5. Turning the heat up on your energy provider could save you $292

Mozo’s annual comparison of energy plans found the average household in New South Wales, Victoria, Queensland, South Australia and the Australian Capital Territory could save $292 by comparing and switching providers.

6. Comparing interest rates on kids savings accounts could see you bank a 2% rate

Mozo’s 2021 Piggy Bank Report found that almost two thirds (63.10%) of kids currently receive pocket money, and nearly all parents (93%) believe kids should do something in return.

Teach your kids about personal finance by comparing interest rates on savings accounts. As the average rate on Mozo’s database is 2%, 1.23% less than some leading accounts offer, it's potentially a valuable lockdown money lesson to learn.

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Source: Mozo

Crawford, A. (2021, July 2). 6 tips and tricks that could save money during challenging times. Mozo - The money saving zone - compare and save. https://mozo.com.au/family-finances/6-tips-and-tricks-that-could-save-money-during-challenging-times