Your Guide To A Summer Financial Overhaul

It’s summertime in Australia, and the heat is on – in more ways than one! The mercury is rising, and so is the cost of living.  

There’s no denying the festive season is an expensive time for Aussie households. A recent i-Link Research commissioned by comparison service iSelect found that one in four Aussies estimate their household spends more than $1,000 on Christmas each year, while 14 percent estimate their household spends more than $1,500. However, given the increased cost-of-living, more than half of Aussies surveyed (58 percent) said they’d be taking steps to reduce Christmas spending in 2022.¹ 

So if you’re one of the Aussie households that have cut back on some of your family’s festive favourites to save money in 2022, you’re not alone. But have you thought about some of your other household bills and if you could save money there? Read on as we outline some of these common expenses, and how your family could potentially save some of your hard-earned cash right now by reviewing them.  

Are You Underinsured?  

Let’s kick things off with the roof over your head and its contents. Perhaps you’re heading off on a family holiday sometime this summer before the kids return to school for 2023? We know prepping for a trip can be exciting, but stressful too! It’s understandable thinking about whether your home and/or possessions will be safe and secure while you’re away may be the last thing on your mind. But it’s important to ensure your home and/or contents are adequately insured. Especially in Australia, where we can experience storms, fires, floods (even cyclones for those living in the north!).  

Checking you have an adequate policy could save you significantly if an unfortunate event was to occur while you’re enjoying that hard-earned break. Some people may think they’re automatically covered for things like theft, or storm and flood damage when they might not be. So, put your home and/or contents insurance policy on your 2023 list of bills to review and make sure you have adequate cover. You could thank us in the  long run! 

Checked Your Energy Plan Recently?  

Energy became less affordable for many Aussies in 2022 (along with many other household staples, might we add!) but power bills are expected to soar even higher in 2023 for many.² The study commissioned by iSelect found most Aussies surveyed (87 percent) are worried about the cost of their upcoming summer energy bill,  with 15 percent saying they’re extremely worried and have no idea how they’re going to pay for it. 

While there are some simple steps you can take around the home this summer to curb your power usage (such as only cooling the rooms you’re using, or keeping curtains shut during the hottest past of the day³), but it’s also a great idea to review your energy plan to make sure you’re on a suitable deal. Power prices may be higher across the board, but there are still differences to be found between plans and providers, and let’s be honest, every single dollar saved counts during this current economic climate so taking the time to compare could be well worth it!  

How’s Your Health Insurance Policy? 

You may recall most of the country’s biggest health funds increased their prices on November 1^st 2022.  Medibank/ahm is set to increase their premiums on January 16, 2023.⁴If you have private health cover, and  your premium just went up (or is about to) consider comparing your current policy against a range of others in  2023. 

For example, generally, the higher the excess or co-payment you are willing to pay, the lower the premium. If  you think it’s unlikely you (or your family members) will be admitted to hospital in the near future, you could  opt for a higher excess on eligible policies in exchange for lower overall premiums.  The Australian Department  of Health indicates that savings for customers taking up higher excesses could be up to $200 for singles and  $350 for families. ⁵ Also, if you can afford to (and your health fund allows you to) consider pre-paying your  annual premium upfront for a full year to lock-in your current rate. This will help you delay any premium  increases that occur over the next 12 months. 

There you go – some common household bills and expenses to review as 2023 gets underway, which could potentially help reduce your cost-of-living during the new year. Whether it’s your energy plan, home and/or  contents insurance, or health insurance policy, a comparison service such as iSelect* can help you compare  these and see if they can find you a better deal.  

*iSelect does not compare all products in the market. The availability of products iSelect compare may change from time to  time. Not all products made available from iSelect’s providers are compared by iSelect and due to commercial  arrangements, area or availability, not all products compared by iSelect will be available to all customers. Some products  and special offers may only be available from iSelect’s call centre or website. 

Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or  needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to  your personal situation, before acting on iSelect’s advice or purchasing any policy. You should consider iSelect’s Financial  

Services Guide which provides information about our services and your rights as a client of iSelect. iSelect receives  commission for each policy sold. 

¹ Source: iSelect commissioned i-Link Research to conduct a national online survey between 4 November and 10 November 2022. The sample is n=1,000  Australians 18+ years, with data weighted to represent the population by age, state, and gender, and is representative of all Australian adults 18+ ² Source: Source: Page 6 of the State Of The Energy Market 2022 Report &  Page 57 of The Budget Statement 2: Economic Outlook ³ Source: https://www.energy.gov.au/households/quick-wins

⁴ Source: https://www.medibank.com.au/livebetter/newsroom/post/cybercrime-customer-support-package 

⁵ Source: https://www.health.gov.au/sites/default/files/private-health-insurance-reforms-increasing-voluntary-maximum-excess-levels.pdf