Cost of living tips

Practical ways to reduce expenses, manage rising costs and get help if you’re struggling

The cost of living has increased significantly in recent years. Groceries, electricity, insurance, fuel and housing costs have all gone up, putting pressure on household budgets.

Many Australians who have always managed their finances well are finding that their money simply doesn’t stretch as far as it used to.

If you’re feeling the squeeze, you’re not alone.

The good news is that small changes can make a meaningful difference. You don’t need to overhaul your entire lifestyle or create the perfect budget. Start with a few practical actions and build from there.

This page also includes helpful tips from various Way Forward staff.

Note: If you’re facing urgent financial stress or personal crisis, you’ll find information about services that can help you on our Emergency Assistance and Crisis Support page.

Start here

Four things you can do this week

They are simple, practical and likely to have the biggest impact on your household budget.

01

THIS WEEK

Compare your biggest bills

Many Australians stay on the same plans for years without checking whether a better deal is available.

Compare your electricity plan (and gas if you have it)

If you’re in NSW, Qld, SA, Tas or the ACT go to energymadeeasy.gov.au
If you’re in Victoria go to compare.energy.vic.gov.au
Note: If you’re in WA or NT, you don’t yet have a choice of energy retailer.
Review your mobile phone plan.

Can you get a cheaper deal?
Review your internet plan.

Can you get a cheaper deal?
Check when your insurance policies are due for renewal.

Set a reminder to compare quotes before they renew.

Tip from Kelly – Schedule next year’s savings today

Before you finish, put a recurring reminder in your calendar to review your budget, compare your bills and check your insurance in 12 months’ time. It’s a small task today that could save you hundreds of dollars every year.

WHY IT MATTERS

A few phone calls or online comparisons could save hundreds of dollars each year.

02

THIS WEEK

Reduce convenience spending

Convenience often comes at a cost.

Take lunch to work at least twice.
Make coffee at home a few days this week.
Reduce takeaway meals.
Plan your meals before grocery shopping.

Tip from Nicole – Shop your pantry first

Check what you’ve got on hand in the fridge, freezer, and cupboards that can be turned into a meal.

You can even use AI – take a photo of your fridge or pantry and upload it to AI or type in what you have on the shelves and see what AI suggests you could cook.

Shop online – it reduces impulse spending.
Make meals in bulk and freeze them for later.

WHY IT MATTERS

Saving just $40 per week adds up to more than $2,000 over a year.

03

THIS WEEK

Review your regular payments

Most people have subscriptions, memberships or automatic payments they rarely think about.

Check your bank account for recurring payments.
Review streaming services and subscriptions.

Tip from Kelly – Subscribe to one service at a time

Watch everything you want to watch and then cancel

Tip from Kylie – Ditch streaming and use free-to-air

Many people don’t realise that free-to-air TV has lots of great shows as well. You can use free-to-air catch-up services to watch on demand.

Review gym memberships and other memberships.

Cancel anything you no longer use or value.

WHY IT MATTERS

Small monthly payments can quietly add up to hundreds of dollars each year.

04

THIS WEEK

Get help early if debt is becoming a problem

If you’re relying on credit cards or buy now pay later services to cover everyday expenses or only paying the minimum amount on your credit card each month, it’s a sign that your finances are under pressure. If this is you:

Contact your lender if you’re finding repayments difficult.
Ask about financial hardship assistance.

Tip from Meagan – You have rights

Lenders, telcos and utilities have a legal obligation to consider your request for financial hardship assistance.

Learn about your options before you miss a payment.

You can find out more by reading our article about financial hardship. Our video explainer “Can’t pay your debts? Here’s what to say” can also help.

WHY IT MATTERS

The earlier you seek help, the more options you’re likely to have.

Tips by Topic

Mortgages

Housing is often the largest expense in a household budget.

Check the interest rate being offered to new customers by your lender.
If it’s lower than yours, call and ask for a better rate.
If your lender won’t reduce your interest rate, think about refinancing particularly if you’ve had your loan for several years.
Contact your lender early if you’re struggling with repayments.

Even a small reduction in your interest rate could save hundreds or thousands of dollars over time.

Renting

Housing is often the largest expense in a household budget.

We know that trying to find ways to save on rent is not easy.

For some people, sharing a house or renting out a room can help.
If you’ve been a reliable tenant who pays on time and looks after the property, your landlord or agent might take this into account when it comes to a rental review. There is no harm in reminding them.
Before deciding to move, compare the total cost of moving, including bond, removalists, utility connection fees and potentially higher rents elsewhere.
Understand your rights if you believe a rent increase is excessive or unfair.

Tip: In Victoria, if you believe that a rent increase is unfair, you can challenge it through Rental Dispute Resolution Victoria.

There are free tenancy advice services in every State and Territory. You can search this map to find the right service for where you live.

Grocery savings

For many households, groceries are one of the largest weekly expenses.

The good news is that some of the simplest strategies are often the most effective.

Plan before you shop

Planning meals before shopping helps reduce impulse purchases and food waste. Take a list with you.

Tip from Deb – Check out local

Sometimes farmers’ markets and your local shops are cheaper for fruit and veggies than the big supermarkets.

Pantry night

One night a week, cook food you already have on hand.

Tip from Chetan – Meat-free night

Have at least one night a week that is meat-free.

Compare unit prices

The cheapest-looking product isn’t always the best value. Compare the price per kilogram, litre or 100 grams.
Reduce food waste

Freezing leftovers and planning meals around ingredients you already have can save hundreds of dollars each year.
Try more home-brand products

Many home-brand products offer similar quality at a significantly lower price.

Energy

Energy bills are a major expense for many households.

Simple changes can help reduce costs without dramatically affecting your lifestyle.

Consider:

Comparing electricity providers regularly. This is easier than you think.

If you’re in NSW, Qld, SA, Tas or the ACT go to energymadeeasy.gov.au
If you’re in Victoria go to compare.energy.vic.gov.au
Note: If you’re in WA or NT, you don’t yet have a choice of energy retailer.

If you’re struggling to pay, check if you’re eligible for state‑based concessions or emergency energy payments. You can do that by googling “electricity concessions” in your state/territory.

Tip from Ritchie – Stop using the dryer

Clothes dry perfectly well on a clothes airer. Use a warm room or move the airer to follow the sun. The clothes are often fresher and not as crumpled.

Emptying and turning off any second fridge that isn’t really needed.
Turning appliances off at the wall.
Running full loads in washing machines and dishwashers.
Cleaning air-conditioner filters.
Using ceiling fans where possible.
Sealing gaps around doors and windows.

Tip from Michelle – Rug Up

Dress more warmly. A warm jumper, some more layers.

Tip from Fiona – Centrelink Concessions

If you’re a Centrelink concession card holder, makes sure that any concessions are applied to your utility bill.

Reviewing insurance

Insurance is important, but many Australians automatically renew policies without reviewing them.

Before renewing:

Compare quotes from other insurers.
Ask your current insurer whether a better rate is available.
Review whether your level of cover still suits your needs.
Check whether you’re paying for extras you don’t need.

Even a 30-minute review could save hundreds of dollars over the next year.

Tip from James – Go online

You may get further discounts if you purchase your policy online and if you have more than one policy with the same insurer, such as home and car insurance.

Savings habits

Building savings isn’t about putting away large amounts of money. It’s about creating small habits that become routine.

As the saying goes, from little things, big things grow. Even saving a few dollars each week can gradually build an emergency buffer and make unexpected expenses easier to manage.

Consider:

Pay yourself first

If you can, transfer a small amount into a savings account on payday before you start spending. Even $10 or $20 a week will add up over time.
Round up your purchases

Many banks and budgeting apps let you round up purchases to the nearest dollar and automatically transfer the difference into a savings account. For example, if you buy a coffee for $4.75, another 25 cents is transferred into your savings.

Tip from Julie – Save what’s left over

Rather than waiting until payday to see if you’ve run out of money, try doing the opposite. The day before your next payday, check your everyday account and transfer whatever is left into your savings account.

Save unexpected money

Tax refunds, rebates, work bonuses or cash gifts can be a great opportunity to boost your savings rather than increasing your spending.

Tip from Joshua – Give every dollar a job

Before payday arrives, decide what each part of your income is for – bills, groceries, savings, debt repayments and a little bit of fun. When your money has a purpose, it’s often easier to stick to your budget.

The Way Forward team suggest thinking about putting your money into specific buckets.

Useful tools and resources

Budget planner

Understand where your money is going and identify opportunities to save by using the Way Forward budget planner.

Repayment calculator

See how changing your repayments can affect how long it will take to pay off your debts by using the Way Forward repayment calculator.

Video explainers

We’ve put together a series of short videos covering common debt and financial hardship topics.

Find a network

There are lots of groups on social media where people share money-saving tips. Google and you’ll find them. See which ideas might work for you and your family and your circumstances.

National Debt Helpline

Free financial counselling for people experiencing financial difficulty.

Website: ndh.org.au
Phone: 1800 007 007

This page was put together with the input of the Way Forward staff.

“I no longer feel fear when my phone rings.”

Relief / Hope

“You were calm, patient, understanding and most of all I didn’t feel judged.”

Respect / Non-judgmental Support

“You have literally changed my life.”

Life Change / Emotional Impact

“You have really helped our whole family — we can relax a bit now.”

Family / Everyday Life

READY TO TAKE ACTION?

If you’re struggling to pay your bills and debts, find out if Way Forward can help you.

GET STARTED

Supporting people to find the

Way Forward Debt Solutions is a registered charity in Australia –  ABN 20 628 702 821

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Cost of living tips

Four things you can do this week

01

THIS WEEK

Compare your biggest bills

Compare your electricity plan (and gas if you have it)

Review your mobile phone plan.

Review your internet plan.

Check when your insurance policies are due for renewal.

WHY IT MATTERS

02

THIS WEEK

Reduce convenience spending

Take lunch to work at least twice.

Make coffee at home a few days this week.

Reduce takeaway meals.

Plan your meals before grocery shopping.

Shop online – it reduces impulse spending.

Make meals in bulk and freeze them for later.

WHY IT MATTERS

03

THIS WEEK

Review your regular payments

Check your bank account for recurring payments.

Review streaming services and subscriptions.

Review gym memberships and other memberships.

WHY IT MATTERS

04

THIS WEEK

Get help early if debt is becoming a problem

Contact your lender if you’re finding repayments difficult.

Ask about financial hardship assistance.

Learn about your options before you miss a payment.

WHY IT MATTERS

Tips by Topic

Check the interest rate being offered to new customers by your lender.

If it’s lower than yours, call and ask for a better rate.

If your lender won’t reduce your interest rate, think about refinancing particularly if you’ve had your loan for several years.

Contact your lender early if you’re struggling with repayments.

For some people, sharing a house or renting out a room can help.

If you’ve been a reliable tenant who pays on time and looks after the property, your landlord or agent might take this into account when it comes to a rental review. There is no harm in reminding them.

Before deciding to move, compare the total cost of moving, including bond, removalists, utility connection fees and potentially higher rents elsewhere.

Understand your rights if you believe a rent increase is excessive or unfair.

Plan before you shop

Pantry night

Compare unit prices

Reduce food waste

Try more home-brand products

Comparing electricity providers regularly. This is easier than you think.

Emptying and turning off any second fridge that isn’t really needed.

Turning appliances off at the wall.

Running full loads in washing machines and dishwashers.

Cleaning air-conditioner filters.

Using ceiling fans where possible.

Sealing gaps around doors and windows.

Compare quotes from other insurers.

Ask your current insurer whether a better rate is available.

Review whether your level of cover still suits your needs.

Check whether you’re paying for extras you don’t need.

Pay yourself first

Round up your purchases

Save unexpected money

Useful tools and resources

<img decoding="async" class="alignnone size-full wp-image-6450" src="https://wayforward.org.au/wp-content/uploads/2026/07/Icon_1.png" alt="" width="20" height="20" />

Budget planner

<img decoding="async" class="alignnone size-full wp-image-6451" src="https://wayforward.org.au/wp-content/uploads/2026/07/Icon_2.png" alt="" width="20" height="20" />

Repayment calculator

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Video explainers

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Find a network

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National Debt Helpline

Supporting people to find the

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