If you’re tired of unpredictable bills, it might be time to create your own bill fixing strategy.
With so many expenses to worry about, managing the cost of living can at times be overwhelming. But, there are some strategies you can use to help you budget better.
According to finance expert Canna Campbell, Aussies should lock in fixed rates as a way to manage their bills (and save money while they’re at it).
Here are some of the tips she recently shared on the TODAY show:
Canna’s first tip is to lock in a payment plan that gives you a fixed amount of usage per month. These types of plans create price certainty, so you don’t have to worry about fluctuations, making managing your budget and cash flow so much easier.
Predictable Plan is Australia’s first fixed-price energy plan and allows you to pay the same amount for your electricity or natural gas for 12 months (our Fair Use Policy applies if your usage is excessive or unreasonable). Find out more.
Petrol can be a big weekly expense for families. Now you can fix the price of petrol too. 7 Eleven has an app that picks up your location and lets you know which of their stations have the cheapest price. You can then lock in that price for 7 days. If it drops, you’ll pay the lower amount.
If you see a great home loan price advertised, you can pay a fee to lock it in for 90 days which buys you some time to get all your financials in order, lodge your application and get it approved.
Make sure to check all the terms and conditions around penalties and exit fees.
Annual upfront fees like home and contents insurance can be paid monthly, quarterly or fortnightly through bill smoothing. This allows you to ‘set and forget’.
Avoid bill shock
There’s nothing worse than bill shock – when a big bill comes in and you haven’t accounted for it in your monthly budgeting.
Canna recommends having a dedicated savings account where you can save a set amount per month or fortnight in preparation for big bills. You should refer to your calendar and know exactly when these expenses are due. For example, if your car registration is due in July and its $1500, you should put $300 aside per month from the start of the year.