Top ten ways to beat the rate hike

Overwhelmingly, Australian market economists are expecting the Reserve Bank of Australia to raise rates this week. The impending rate rise is in response to negative inflation figures for the third quarter. And so, with another interest rate hike to deal with, here are ten ways you can scrounge up some extra cash each month to meet your mortgage repayments:

  1. Slash your internet costs - cable internet does not require a phone line, so if it is available in your area, you could save yourself $30 a month or more on the phone line rental fees associated with DSL use simply by using your mobile to make all your calls.
  2. Buy in bulk at the supermarket - that junk mail you get in your letterbox every week could actually be a useful financial planning tool. Check what's on special, and make a list to purchase essentials such as meat, toilet paper and washing powder only when it's on special. The savings can really add up!
  3. Buy your meat according to price - meat is always increasing in cost, and the best way for you to save money on the weekly shopping is to purchase meat only when it is reduced or on special. Freezing mince is also a good option, as it generally recovers fairly well when thawed, unlike some other types of meat.
  4. Cut your transportation and gym costs - riding a bike to work may not be feasible for some, but it can be very beneficial if you work relatively close to home. Not only does riding a bike to work slash your transportation and parking costs, it could also allow you to ditch that gym membership. The benefits for your health and your finances could be huge!
  5. Make the most of cheap entertainment - Visiting the movies can be an expensive outing these days, but it doesn't have to be. There are still cinemas around which show the latest blockbusters and don't charge an arm and a leg for tickets. Cineplex is known for this - their adult tickets cost just $6 on Tuesday, and jump to a still-affordable $7.90 on weekends. Candy bar food is also substantially cheaper, though taking your own food and drink is always the best option if you're on a tight budget.
  6. Review your mobile phone usage - Try to limit your text messaging and mobile calls. There is no need to text your boyfriend every day to let him know you miss him - send an email instead! Email is free, and chances are if it's not worth saying in an email, it's not worth the 30 cents to send a text. Investigate mobile phone cap plans if you're not already using one, and keep your usage under your limit!
  7. Maximise fuel discounts - Take notice of the petrol prices around your area, and only buy on the days when it is cheapest. And don't forget to use those fuel discount vouchers too - 4 cents a litre off each time you visit the pump could save you over $150 in the course of a year.
  8. Watch your wallet when eating out - drinks are usually a substantial portion of the cost of a meal, yet many drinks offer little nutritional value. Soft drinks are a prime example of this, so don't be afraid to just ask for tap water instead. Likewise, the most expensive food on the menu is not always the best. Try to compromise, and if you can avoid eating out it's almost always cheaper to cook the same thing at home.
  9. Become a chef - cook for yourself on a regular basis, be creative and experiment with different recipes and you could find that you start enjoying the process more and more. Not only will you be saving money by cooking at home, if you become a really good cook you'll be less inclined to splurge on restaurant meals when you eat out.
  10. Don't be afraid of cheaper brands - remember that when it comes to many products, especially at the supermarket, a large portion of the cost passed onto the consumer is to cover advertising and packaging. Cheaper brands may not look as attractive, but read the ingredients and you'll find many of them are identical to the more expensive brands. Big savings can be made.
How do I compare mortgages?

RateCity is the best website to shop around on for over 2000 home loans and most other financial products. At RateCity, you can use expert comparative data from CANNEX, Australia's leading financial research and ratings firm. CANNEX has analysed and evaluated hundreds of products to award five stars to only the very best. The CANNEX star ratings go much further than just looking at interest rates. They also take into account important features so you can be confident you are getting the best product.

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