How does your household spend compare?

With the rising cost of living, are you curious about how your household spending compares with others? In this post, we look at the average household spend to see how you and your family track and offer some helpful tips to help reduce your household spending.

According to the Australian census conducted in August 2021, the average Aussie household spends $108,291 a year or $2083 per week. Rent and mortgage accounted for $445 per week; groceries came second place at $215 per week, while recreation and culture at $211.

What bills are Aussies most worried about?

Housing costs were traditionally the largest burden for households, with the 2021 Australian census showing that 34% of Australians ranked rent or mortgage as their top three most stressful bill over the past six months, grocery at second place at 31%, petrol at 27%, followed by energy bills at 22%.

 

How has household spending changed in 2022?

Recent trends have suggested that grocery, petrol and energy bill stress have jumped in recent months. In June, grocery bill stress overtook rent or mortgage for the first time since the survey began in 2019, with 33% of people ranking groceries in their top three most stressful bills.

There's no denying that the cost of living has increased significantly over the last few years. The average price of goods and services most commonly purchased by consumers rose by 6.1%, the highest rate of growth in two decades, and the government expects this to rise to 7.75 per cent by the end of the calendar year.

How to reduce household spending?

Easy wins
Look through your bank account and identify anything that isn't used or essential. There could be unused subscriptions or memberships that can add up. A study by REST super found that 44% of the study's respondents said they've never cancelled subscriptions they weren't using, with one in 10 paying more than $100 a month. Before cancelling any subscription, speak to other family members to avoid unnecessary stress, as essentials can be relative.

Reduce your grocery bills
Plan meals in advance and shop for produce in season or on special. You can save a lot if you buy in bulk, and the same can be said for cooking in bulk, so you can get multiple meals or freeze them. Using the slow cooker also allows you to turn inexpensive ingredients like cheaper cuts of meat into gourmet meals while saving energy cooking them during off-peak times.

Energy Management
Set a realistic energy budget on your emerald EMS App to help you track and manage your electricity spending. Like crash diets, budgeting is only sustainable if you are realistic about your goals. Stick to achievable targets. It is better to chip away slowly than to expect to save hundreds overnight. 

Understanding the biggest energy gobblers in your home is as easy as turning on your emerald EMS app and looking at your dial move while the appliances run. Identifying these hungry appliances and understanding your electricity bill can help you make a few changes that could significantly impact your bills. Collectively, behavioural adjustments such as setting the dishwasher to run at off-peak times, reducing your pool pump running time in winter, or turning off vampire appliances while you sleep could help save hundreds off your energy bills.