While some people thrive on the challenge, others squirm at the thought. Whichever way you lean, know that the art of negotiation is not exactly a walk in the park.
It’s not about reading The Prince and taking a Machiavellian approach either; you’re not actually going into combat. It’s more about doing your research and arming yourself with knowledge as a buyer in a competitive market. 
It’s also about understanding basic negotiation skills and being prepared for any tricks you might face from the seller. If you’re planning to buy a car from a private seller or a dealership, read on for our tips to maximise your leverage and get yourself into a winning position.
<h2>Know what you want</h2>
If you walk into a dealership or chat to a private seller with the idea that they’re going to somehow give you the perfect car and make your day, you’re sorely mistaken.
You want to figure out what you want so that you’re less troubled by unwanted extras, costs, or surprises. A good way to do this is to think about your lifestyle needs.
Are you a single independent after a nifty little hatchback that you can squeeze in just about anywhere? Or perhaps you’re an artist or photographer who needs to lug all your equipment around in a station wagon? You might have young kids that you need to drive and drop off at school each day in a big four-wheel drive, or you might be a tradie looking for a reliable ute. Different lifestyles call for different needs.
Also, think about your lifestyle in the next five or even ten years. Will the car you buy now be good enough to suit you well for the next little while? Will you be able to afford ongoing maintenance or extra costs if it’s an older model? Are you planning on moving suburbs or starting a family? Some of these things might not even be on your mind right now but are important to at least consider for a big purchase like a car.
<h2>Know the car pricing system</h2>
There’s a system for car pricing, so before you walk into a dealership or chat to a car dealer over the phone, know the difference between sticker or ticket price, invoice price, and dealer holdback price. Dealers may also have incentives such as rebates on a select range of new models, so this is something to be aware of before you chat to them. Here’s a further breakdown:
<ul>
<li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Invoice pricing – Dealers pay the car manufacturer an invoice price for the car. You’ll obviously want to get as close to this price as you can but this sort of information isn’t widely available to the general public. </li>
<li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Sticker, ticket or retail price – This is the price that manufacturer’s give a car when it’s distributed from the factory to dealerships. It’s generally advised not to pay this price, as you can probably find a better deal elsewhere.   </li>
<li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Dealer holdback price – Dealers typically receive barely 5%<a href="#1">1</a> of the sticker price on every car they sell, so they’re basically getting it from their manufacturer for less than the invoice price. You can always ask a dealer what their holdback price percentage is. </li>
</ul>
This information is mainly to show you that dealers can still make a profit even if they sell you a car that’s close to the invoice price. Although they won’t negotiate too far down, you don’t necessarily need to believe them when they say they’re ‘not making any money’ from the sale.    Dealer cashback incentives – Manufacturers often promote a select range of makes and models, and in these cases, they usually offer dealers an incentive so they sell more of these particular cars. Have a look around through some different car sales websites and see if the car you’re after has any cashback clout. 
<h2>The importance of inspection</h2>
Even after you’ve settled on a specific car, you’ll still need as much relevant information as possible to make an informed decision.    For example, do you know if the engine’s prone to leaking? Are there any defects with the seatbelts or airbags? Maybe there’s an issue with some faulty wiring?    These concerns spur people to inspect a car before they commit to buying. As noted by the government website Moneysmart, it may be a good idea to get a qualified mechanic to check it for you too<a href="#2">2</a>. This can be especially true if you’re purchasing a used car, as they could have additional defects due to wear-and-tear.
The Australian Competition and Consumer Commission also recommends test driving the car before buying it<a href="#3">3</a>. This can also help reveal possible problems: an engine that stalls, stiff brakes and dysfunctional headlights, among other things.    Knowing about these defects beforehand may also help you through the negotiating process. You’ll know more about the car’s quality: what it’s worth, whether it’s roadworthy and what repairs it requires. You can then use this information to haggle for a lower price – provided you still want the car.
<h2>Walk the walk and talk the talk</h2>
Timing things right and approaching a seller confidently are your keys to successful car price negotiation. Keep an eye out for certain times of the year when dealers need to make budget or hit their targets, so aim to strike right before or during: 
<ol>
<li data-leveltext="%1." data-font="Montserrat" data-listid="7" data-list-defn-props="{&quot;335552541&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">end of year financial sales; </li>
<li data-leveltext="%1." data-font="Montserrat" data-listid="7" data-list-defn-props="{&quot;335552541&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">end of quarters (late March, June, September, December); </li>
<li data-leveltext="%1." data-font="Montserrat" data-listid="7" data-list-defn-props="{&quot;335552541&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">the Christmas holiday period; </li>
<li data-leveltext="%1." data-font="Montserrat" data-listid="7" data-list-defn-props="{&quot;335552541&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">New Year clearance sales; and </li>
<li data-leveltext="%1." data-font="Montserrat" data-listid="7" data-list-defn-props="{&quot;335552541&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">model/make-specific clearance sales.  </li>
</ol>
A great approach to take with a seller is the ‘if and then’ technique. This means you might ask them if they’re willing to come down to your price, then you’ll be prepared to purchase the car right now. The immediacy of this offer can be enticing for sellers, especially if it’s during one of the crucial time periods outlined above. It can also help demonstrate confidence in yourself as a buyer, so if they say no, make sure you stick to your guns and leave your contact details with them if they change their mind. If they really need to make the sale, they’ll appreciate your resolve and might even give you a call to accept your offer. 
And before you get on the road, hop online and check out our range of car insurance policies and providers *. See if you could save on your car insurance policy so you can enjoy peace of mind on your next big road trip.
<hr />
1 <a href="https://www.carsguide.com.au/car-advice/dealer-profit-margins-explained-32397#:~:text=On%20average%2C%20barely%205%20per%20cent%20of%20a%20dealer%27s%20profit%20comes%20from%20new%20car%20sales.%20The%20majority%20(about%2050%20per%20cent)%20comes%20from%20parts%20and%20service%2C%20while%20the%20remainder%20comes%20from%20finance%20and%20insurance%20(30%20per%20cent)%20and%20the%20balance%20is%20from%20used%20cars%20(15%20per%20cent">Carsguide.com.au &#8211; Dealer Profit Margins Explained</a>
2 <a href="https://moneysmart.gov.au/student-life-and-money/buying-and-running-a-car">Moneysmart.gov.au &#8211; Buying and running a car</a> 
3 <a href="https://www.accc.gov.au/consumers/health-home-travel/buying-or-renting-a-car">ACCC &#8211; Buying or renting a car</a>

4 Essential Tips For Negotiating Car Price In 2022

If you’re buying a new car and you’re a little preoccupied with the style, it’s important not to forget about its substance. And by substance, we mean the elements hidden away in the nooks and crannies of the car that keep you safe every day on the road.
We’re here to help you make a more informed decision when it comes to finding a safe car in your budget, and to do that, we need to consider Australian vehicle safety ratings. Read on for more detail about Australia’s independent vehicle safety authority, The Australasian New Car Assessment Program (ANCAP).
<h2>What is ANCAP?</h2>
ANCAP is the leading authority on vehicle safety in Australasia<a href="#1">1</a>. The organisation works closely with public and private organisations to advocate for improved vehicle safety design and specification.
Although independent, the Australian Government explicitly supports ANCAP in its initiative to help drivers find safer vehicles<a href="#2">2</a>.
ANCAP achieves this through a series of safety ratings from zero to five stars. These are then used to assess the cars available across a range of new passenger, sports utility vehicles (SUVs), and light commercial vehicles (LCVs). The safety ratings encompass both the ability of a vehicle to protect its occupants as well as pedestrians in the event of a crash. The closer a vehicle’s rating is to five stars, the better equipped it is to avoid or minimise the effects of a crash.
A five-star rating means that the car has not only achieved the highest possible standards in all safety tests, but it also features the latest safety technologies<a href="#3">3</a>.
<h2>The ANCAP safety rating system</h2>
ANCAP vehicle safety ratings are based on four main areas:
<ol>1. Adult occupant protection – This is a benchmark to measure the level of protection an adult passenger would have in the front or back seats in the event of a crash.</ol>
<ol>2. Child occupant protection – This measures how well-equipped the car is to fit child-restraints in the back seats, as well as how well protected children are in restrained seats.</ol>
<ol>3. Vulnerable road user protection – The front of the car is also assessed to see how well it minimises risk to a pedestrian or cyclist that is struck in the event of a collision.</ol>
<ol>4. Safety assist technologies – Cars are also assessed for the effectiveness of any fitted safety assist technologies in the event of a crash and in how well they minimise the risk of a collision occurring.</ol>
The latest road safety findings from the Bureau of Infrastructure and Transport Research Economics (BITRE) show that in the last 12 months (ending in March 2021), there were 1,127 deaths on Australian roads. And the latest data for a 12-month period of road crash injury hospitalisations (ending in June 2018), 39,404 people were admitted to hospital<a href="#4">4</a>.
ANCAP takes this information into account when assessing vehicles for road safety, and it’s also why they recommend buying newer cars; a higher safety rating that’s as recent as possible is the best protection for you and other road users.
<h2>Not buying a brand new car?</h2>
If you’re buying a secondhand or used car, then it’s also worth looking at the Used Car Safety Ratings (UCSR).
Specifically, the UCSR looks at how likely someone will be killed or seriously injured in an accident depending on the vehicle they’re driving. On this point, Assistant Professor Stuart Newstead of the Monash University Accident Research Centre notes that someone driving the worst rated vehicle is eight times more likely to be killed or seriously injured in a crash than that same driver in the safest vehicle<a href="#5">5</a>.
The UCSR also bases its five-star system on real-world crash statistics and police reports. And like the ANCAP, its mission to inform and protect consumers is welcomed by the Australian government<a href="#1">1</a>.
Just keep in mind that the UCSR does not assess new or near-new cars – typically those manufactured in the last three years or so. In such cases, ANCAP is a more suitable reference.
<h2>What these ratings tell us</h2>
As noted in the UCSR 2021 brochure, newer vehicles tend to be safer. This is reflected in the rating system, where cars with a model year more than a decade old typically score lower<a href="#5">5</a>.
This is because newer cars have to comply with more regulatory standards and usually come with the latest safety features.
Of course, this does not mean that all newer cars are necessarily safer. There can be exceptions. For instance, back in 2021 ANCAP tested the 2020 make of the Mitsubishi Express and rated it zero stars<a href="#6">6</a>.
What it does mean is that you should proceed with care if you decide to purchase an older car. Checking the car’s UCSR rating online may be a good place to start if you’re looking to make an informed decision.
Where can I find my car’s safety rating?
If you’re looking to buy a new or second hand car, you might wish to use one of the car safety rating resources below:
<ol>
<li><a class="Hyperlink SCXW24763244 BCX0" href="https://howsafeisyourcar.com.au/" target="_blank" rel="noreferrer noopener">Victoria’s Transport Assessment Commission – ‘How safe is your car’</a> </li>
<li><a class="Hyperlink SCXW31222861 BCX0" href="https://streetsmarts.initiatives.qld.gov.au/app/car-safety-ratings" target="_blank" rel="noreferrer noopener">Queensland’s Department of Transport and Main Roads – ‘SafeCars’</a> </li>
<li><a class="Hyperlink SCXW250382689 BCX0" href="https://www.ancap.com.au/" target="_blank" rel="noreferrer noopener">The ANCAP website and online search engine</a> </li>
<li><a class="Hyperlink SCXW56808232 BCX0" href="https://roadsafety.transport.nsw.gov.au/downloads/ucsr-2021.pdf" target="_blank" rel="noreferrer noopener">The 2021 USCR brochure (via the New South Wales Department of Transport)</a> </li>
<li><a class="Hyperlink SCXW47536023 BCX0" href="https://www.monash.edu/__data/assets/pdf_file/0004/1956514/2019-UCSRs-brochure.pdf" target="_blank" rel="noreferrer noopener">The Victorian Safety Research Group’s UCSR Buyer’s Guide (2019-2020)</a></li>
</ol>
And if you’re still in doubt, contact your local motoring authority or get in touch with a trusted mechanic for more guidance. Failing that, everyone knows at least one person that lives and breathes cars. Have a chat with them too, but perhaps steer clear of any rev-heads for this one.
<h2>Don’t forget car insurance</h2>
There’s no substitute for good safety, but even the best driver in the safest car might get into a crash. The roads – and other drivers – are unpredictable.
This is where car insurance might be helpful. Depending on the cover you choose, a policy can cover the damage done to your car as well as the damage inflicted on the other driver’s.
Comparing different car insurance policies might also help you find a suitable policy at a competitive price. At iSelect, you can also <a href="https://www.iselect.com.au/car-insurance/">compare different policies</a> from a range of providers – making it easier to weigh up the different cover types and premiums.
&nbsp;
<hr />
1 Source:<a href="https://www.ancap.com.au/media-and-gallery/releases/ancap-quick-fact-independent-ratings-from-an-independent-source">https://www.ancap.com.au/media-and-gallery/releases/ancap-quick-fact-independent-ratings-from-an-independent-source 
</a>
2 Source:<a href="https://www.roadsafety.gov.au/action-plan/2018-2020/vehicle_safety">https://www.roadsafety.gov.au/action-plan/2018-2020/vehicle_safety 
</a>
3 Source:<a href="https://www.ancap.com.au/safety-ratings-explained">https://www.ancap.com.au/safety-ratings-explained 
</a>
4 Source:<a href="https://www.bitre.gov.au/statistics/safety">https://www.bitre.gov.au/statistics/safety 
</a>
5 Source:<a href="https://www.monash.edu/__data/assets/pdf_file/0006/2697054/2021-Used-Car-Safety-Ratings.pdf">https://www.monash.edu/__data/assets/pdf_file/0006/2697054/2021-Used-Car-Safety-Ratings.pdf 
</a>
6 Source:<a href="https://www.ancap.com.au/safety-ratings/mitsubishi/express/ce625a">https://www.ancap.com.au/safety-ratings/mitsubishi/express/ce625a 
</a>

A Simple Guide to ANCAP Car Safety Ratings

Any information or advice provided on these pages is general in nature, does not consider your specific situation or needs and is not intended to imply any recommendation. Consider if any advice is appropriate for you before acting on it.

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. <a href="https://www.iselect.com.au/partners/" target="_new">Click here to view iSelect’s range of providers</a>.

How to Save For a House Deposit In 2022

There’s no one-size-fits-all approach to saving. Since everybody’s financial situation is a little bit different, each person will need a unique savings strategy to match.
For instance, someone on a limited income might have to spend most of their money on groceries and rent, while someone who earns a lot may have a lot more opportunities to save. What might be suitable for you all comes down to your personal circumstances.
<h2>How much income can you spare?</h2>
To begin, it may be a good idea to look at how much money you can reasonably set aside each week (or month). This is not too different from <a href="/blog/how-to-budget/">making a budget</a>; it involves looking at how much you earn, how much you need to spend on living expenses and the amount that you have left over.
<h3>What’s left after essentials?</h3>
These are the necessities of everyday life, expenses like groceries, rent, petrol, utility bills, mortgage repayments and car repayments.
You may want to look at how much these things typically cost you. Gather up your recent receipts and bills and work out how much you usually spend on a weekly or monthly basis. Then subtract this from your regular income.
Let’s use Kathy as an example here. She’s a receptionist who takes home $850 (after tax) each week. On average, she pays $550 in essential expenses: $350 in rent, $100 in groceries, $50 on utility bills and $50 on car expenses, such as petrol and insurance premiums.
In this case, she has $300 left over each week. That’s $300 she could potentially save.
<h3>What’s left after non-essentials?</h3>
Of course, people don’t just buy essentials. Everybody deserves to treat themselves now and again and this is where expenses such as recreation, fancy new clothes, electronics or regular subscriptions fees to Spotify or Netflix come into play.
One way you can get a good feel for your financial situation is by estimating what you spend on non-essentials. Then, subtract this from your remaining income.
Let’s go back to Kathy to see how this works. On average, she spends $90 a week on nights out with her friends, $50 a week on new clothes, $54 on gadgets and $6 on Netflix. All up that’s $200.
Since she has $300 left after buying the essentials, the $200 on non-essentials will leave her with $100 to save (or spend) each week.
<h3>Is it enough?</h3>
Ultimately, it’s up to you to decide how much you want to save.
If you’re saving up much more than you anticipated, then you could keep your spending habits as they are or buy that fancy new laptop you’ve had your eye on. Alternatively, maybe you’ve noticed some non-essential expenses that you can scale back. By doing so you could free up more money to save or invest.
<h2>What do you need for an emergency?</h2>
Depositing a fraction of your savings into an emergency fund might also be worth considering.
As noted by the ASIC website Moneysmart, an emergency fund can provide a useful safety net in case something sudden and unexpected ever happens to you or your family<a href="#1">1</a>.
This could be a medical crisis, unexpected travel costs or emergency repairs if your car ever breaks down in the middle of nowhere.
Moneysmart points out that even setting aside a little bit each week can provide some peace of mind. A weekly deposit of $30 adds up to $1560 a year – and that might be enough to try and help make the worst that life can throw at you a little more bearable.
<h2>Which savings strategy is best for you?</h2>
Let’s face it, it’s not up to us to tell you how much you should save. So let’s go for a better approach. By going over some of the different savings strategies that people use, you might be able to find one that suits your needs. Ready? Let’s begin.
<h3>The 50-30-20 rule</h3>
We’ve mentioned this handy guideline in some of our <a href="/blog/how-much-should-you-have-in-savings/">other articles</a>. Popularised by US Senator Elizabeth Warren in her book, All Your Worth: The Ultimate Lifetime Money Plan, the 50-30-20 provides a simple way to divvy up your after-tax income<a href="#2">2</a>:
<ul>
<li>The first 50% goes to your essentials</li>
<li>30% goes to your non-essentials</li>
<li>20% goes towards a savings account or investments</li>
</ul>
This can be a great way to save up a significant amount of your income – provided your essentials only take up 50% of your earnings. The main drawback? For many Australians it could be impractical. With the cost of living on the rise, some families might really struggle to cover all the essentials with just 50% of their household income.
<img decoding="async" loading="lazy" class="alignnone size-medium wp-image-3922" src="https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-Person-looking-at-20-60-20-saving-300x300.png" alt="Saving with the 60-20-20 rule" width="300" height="300" srcset="https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-Person-looking-at-20-60-20-saving-300x300.png 300w, https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-Person-looking-at-20-60-20-saving-1024x1024.png 1024w, https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-Person-looking-at-20-60-20-saving-150x150.png 150w, https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-Person-looking-at-20-60-20-saving-768x768.png 768w, https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-Person-looking-at-20-60-20-saving.png 1080w" sizes="(max-width: 300px) 100vw, 300px" />
<h3>The 60-20-20 rule</h3>
Similar to Warren’s rule, but perhaps a little more useful for those with thin budgets, is the 60-20-20 rule. Created by the best-selling Australian author Scott Pape (aka the Barefoot Investor), it advises a slightly different approach<a href="#3">3</a>:
60% of your after-tax income goes to essentials 
20% should go towards non-essentials and treating yourself 
20% should be split between a savings account and paying off debts
When it comes to your savings, Scott advises building up $2,000 in a high-interest savings account. After this, he suggests using the money you save to get rid of any debts, paying off the smallest first before moving on to the bigger ones.
<h3>Pay yourself first</h3>
The premise of this strategy is simple. You begin with a savings goal in mind; maybe it’s $50 a week, maybe it’s $1000 a month. Then you set up an automatic deposit so that the amount always goes into your savings account<a href="#4">4</a>.
You can do this by setting up a periodic transfer on your transaction account. Or, as noted by Moneysmart, you can ask your employer to transfer a part of your pay directly into the savings account<a href="#5">5</a>. Whichever way is easiest.
An advantage of this strategy is that it is incredibly flexible. It allows you to save $10 a week if you’re just scraping by and it allows you to save more if you’re in a better situation.
It also “locks in” a savings amount before you put your money towards living expenses and recreation, so it’s always sensible to work out how much you’ll need to survive before setting up these automatic transfers.
<h2>What can I do to boost my savings? </h2>
Swearing off that 7 am coffee from an up-scale barista might help you build up your savings in the long run. Then again, it might be worth going through the whole gamut of your expenses to see what else you can reduce.  
iSelect might be able to help with this too. We offer a range of comparison services for gas and electricity, insurance, credit cards, home loans and more. With us, you can find a competitive price by <a href="https://www.iselect.com.au/">comparing a range of different providers and plans</a>. So get started online today if you’re interested! 
<hr />
1 <a href="https://moneysmart.gov.au/saving/save-for-an-emergency-fund">Save for an emergency fund &#8211; Moneysmart.gov.au</a>
2 <a href="https://www.investopedia.com/ask/answers/022916/what-502030-budget-rule.asp">https://www.investopedia.com/ask/answers/022916/what-502030-budget-rule.asp</a>
3 <a href="https://www.barefootinvestor.com/articles/is-my-bank-balance-supposed-to-look-like-this">How to Make a Budget — The Barefoot Investor &#8211; Scott Pape</a>
4 <a href="https://www.investopedia.com/ask/answers/12/pay-yourself.asp">Why Should I Pay Myself First? (investopedia.com)</a> 
5 <a href="https://moneysmart.gov.au/saving/simple-ways-to-save-money">Simple ways to save money &#8211; Moneysmart.gov.au</a>

How Much Of My Income Should I Be Saving?

Let’s face it – when it comes to the economy, things could be a lot better. Like most of the world, the cost of living in Australia is on the rise. But why exactly is this happening? And what can you do to protect yourself from it?
<h2>Inflation – a quick and easy summary</h2>
Inflation is just a simple way of describing what happens when the price of goods and services begin to rise. This can be anything from groceries, to gas, to the cost of rent.
According to the Reserve Bank of Australia, inflation is usually measured by the Consumer Price Index (CPI)<a href="#1">1</a>. CPI is also used to estimate the price of everyday household expenses such as food, education and insurance.
For this reason, inflation typically describes a rise among many different things at the same time. It can also put a strain on ordinary people that isn’t relieved by a similar decrease in other expenses.
<h2>What causes inflation?</h2>
To paraphrase the American economist Timothy Taylor, inflation occurs when there’s a shortage of goods and services. More specifically, when too much money is chasing these goods and services<a href="#2">2</a>.
At its heart, this is what’s driving inflation in 2022. The COVID-19 pandemic has disrupted ‘supply chains’ around the world. These are the networks that businesses use to get goods and services to the people who want them. Now businesses can’t distribute as many goods, but people still need these goods, and more importantly, they are willing to pay increased prices for these goods. This high demand and low supply is a large part of what’s driving up prices.
However, there’s also cause for optimism. As noted by Dean Baker, a senior economist at the Center for Economic and Policy Research, once these disruptions to supply chains end, there’s reason to believe that prices will stop rising. They may even begin to fall<a href="#3">3</a>.
<h2>So, how is it affecting Australians?</h2>
Let’s start with the bad news: inflation in Australia is at a 20-year high. According to the Australian Bureau of Statistics (ABS), CPI rose by 5.1% over a twelve month period to March 2022<a href="#4">4</a>.
Now, compared to the rest of the world, that’s not too shabby. By comparison, the United States saw a rise of 8.1%<a href="#5">5</a>. Meanwhile, CPI in the United Kingdom jumped by 7%<a href="#6">6</a>.
However, that’s probably little comfort to the millions of ordinary Australians who’ve just seen their cost of living go up. The only silver lining here is that inflation doesn’t impact every good or service equally; some rise quite a bit while others stay pretty much the same.
In this case, knowing exactly what you’ll need to budget for may help you deal with inflation a little more easily.
<h2>Which costs are on the rise?</h2>
<h3>Petrol and other fuels</h3>
If you drive to work every weekday, then you’ve probably already noticed how expensive petrol has gotten. According to the ABS, automotive fuel rose by 11% from March 2021 to March 2022<a href="#4">4</a>.
As such, driving is now a much more expensive activity – so you might want to prepare accordingly. Public transport is one possible option to get around cheaply in the meantime, or, if you’ve always wanted to take up cycling, now could prove a thrifty time to do so.
<h3>Food and grocery products</h3>
The cost of food and non alcoholic beverages has increased by 4.3% from March 2021 to March 2022. This is most noticeable when it comes to fruit and vegetables (5.8%), non alcoholic beverages (5.8%) and meat and seafood (4.8%)<a href="#4">4</a>.
In light of this, opting to eat healthier might help. Switching out the soft drinks for water is one possibility, while cutting down on meat and adhering to a <a href="https://www.deakin.edu.au/about-deakin/news-and-media-releases/articles/sustainable-eating-is-healthy-for-us-and-the-planet,-and-saves-money-too">more sustainable diet</a> is another.
<h3>Other costs</h3>
While housing, groceries and transport make up about 50% of household expenses, other costs are on the rise too. From March 2021 to March 2022, the cost of education rose 4.7%, furnishings, household equipment and services by 4.9% and health costs – namely pharmaceutical products and hospital services – by 3.5%.
In fact, prices are up across the board with two notable exceptions. The cost of clothing and footwear went down by 1.5% and communication costs, including local calls, mobile services and internet services, also decreased by 0.8%.
<h2>Will inflation affect the interest on my home loan?</h2>
Sometimes a central bank will raise the ‘cash rate’ in order to fight inflation. This ‘cash rate’ is basically the rate that lenders have to pay each other for overnight loans. Increases in the cash rate usually affect other interest rates as well – and this may include home loans.
It’s also worth noting that the RBA hadn’t raised the cash rate since 2007. As of May 2022, it was raised from an all-time low of 0.10% to 0.35%<a href="#7">7</a>.
So, what might this mean for the rates on your home loan? According to a report by ABC News, the Big 4 Banks have already begun to implement a raise in variable home loan interest rates as of May 2022. So far it is relatively modest too, with NAB and Westpac only raising these rates by 0.25%<a href="#8">8</a>.
This will no doubt increase mortgage repayments. For example, ANZ notes that standard variable rate owner-occupiers paying principal and interest will now pay an extra $57 a month on a $450,000 home loan<a href="#8">8</a>.
In a May 2022 press release, RBA Governor Dr Phillip Lowe also stated that further rises in interest rates will be necessary to fight inflation<a href="#9">9</a>. If implemented, this may cause people’s home loan repayments to rise as well.
<h2>When will inflation end?</h2>
A modest amount of inflation is not always a bad thing. So long as the economy is running smoothly and wages are keeping pace with the cost of living, people can generally handle it. Unfortunately, that isn’t what is happening right now.
Inflation – measured by CPI – is currently rising faster than wages are growing. The RBA also predicts that this will continue until December 2023, with inflation reaching its peak at 5.9% in December 2022 and steadily declining afterwards<a href="#10">10</a>.
This means, for the time being, Australians will either have to spend more to enjoy the same standard of living or cut back on expenses to make ends meet. It stinks, but there’s no way around it.
<h2>Getting a good deal is more important than ever</h2>
Managing a slew of expenses isn’t easy at the best of times, but with a rise in prices it has become even more difficult. Insurance premiums, utility bills and mortgage repayments are just some of the costs that millions of Australians are scrambling to pay.
This is why it might be a good idea to shop around for a product that suits your needs and budget. You may be able to find a cheaper price on electricity or gas with a different provider, a lower premium with a different insurer or a home loan with lower repayments should you choose to refinance.
If you’re interested, iSelect has partnered with Lendi to help you find out more about potentially refinancing your home loan. We also offer a range of comparison services for choosing suitable <a href="https://www.iselect.com.au/health-insurance/?utm_source=google&amp;utm_medium=cpc&amp;utm_campaign=he_bau-generic-brand-exact_dr&amp;utm_term=iselect-health-insurance&amp;ds_rl=1272564&amp;ds_rl=1255798&amp;ds_rl=1272564&amp;gclid=CjwKCAjwu5CDBhB9EiwA0w6sLcuNFeoiQqk_tnYr-oAvKE9EtAAueabxuEw77YGzfM072dr7l2AMehoCNGIQAvD_BwE&amp;gclsrc=aw.ds">health</a>, <a href="https://www.iselect.com.au/life/">life</a>, and <a href="https://www.iselect.com.au/life/">home insurance</a> via a range of providers – so feel free to check with us online and see whether you could save.
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1 <a href="https://www.rba.gov.au/education/resources/explainers/inflation-and-its-measurement.html">https://www.rba.gov.au/education/resources/explainers/inflation-and-its-measurement.html</a>
2 Taylor, Timothy. <a href="https://books.google.com.au/books?id=E4K4nXvAu1EC&amp;pg=PT135&amp;lpg=PT135&amp;dq=google+books+%22higher+inflation+can+have+many+different+starting+points%22&amp;source=bl&amp;ots=c-Uwyb_z8n&amp;sig=ACfU3U3RAlqiVloKWovlUypUWF_XTvhPIQ&amp;hl=en&amp;sa=X&amp;ved=2ahUKEwjW9Li61tH3AhXl7nMBHVFzD28Q6AF6BAgDEAM#v=onepage&amp;q=google%20books%20%22higher%20inflation%20can%20have%20many%20different%20starting%20points%22&amp;f=false">The Instant Economist: Everything You Need to Know About How the Economy Works</a>. New York: Plume, 2012. Print. (Page 141) 

3 <a href="https://cepr.net/two-routes-to-lower-inflation/">https://cepr.net/two-routes-to-lower-inflation/</a>  
4 <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release">Consumer Price Index, Australia, March 2022 | Australian Bureau of Statistics (abs.gov.au)</a> 
5 <a href="https://www.bls.gov/news.release/cpi.nr0.htm">https://www.bls.gov/news.release/cpi.nr0.htm</a>  
6 <a href="https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/march2022">https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/march2022</a>  
7 <a href="https://www.rba.gov.au/statistics/cash-rate/">Cash Rate Target | RBA</a> 
8 <a href="https://www.abc.net.au/news/2022-05-03/banks-cba-nab-anz-westpac-fixed-variable-mortgage-rates/101033688">Commonwealth Bank, ANZ, Westpac, NAB to raise variable mortgage rates by 0.25 per cent after RBA rate hike &#8211; ABC News</a> 
9 <a href="https://www.rba.gov.au/media-releases/2022/mr-22-12.html">Statement by Philip Lowe, Governor: Monetary Policy Decision | Media Releases | RBA </a>
10 <a href="https://www.rba.gov.au/publications/smp/2022/may/economic-outlook.html">Economic Outlook | Statement on Monetary Policy – May 2022 | RBA</a>

What Is Inflation & Why Does It Matter?

Are you and your partner looking to start a family? Or perhaps you’re done with babies but need more or cash to pay for the (expensive!) kids you’ve already got, Either way it can be important to consider what it takes to maintain a financially secure and stable household for you and your offspring.
At a glance, planning a family budget requires meeting expenses, spending less than you earn, and having enough money available on the side in case of an emergency. Check out the tips we’ve outlined below so you can start creating a practical budget plan for you and your family.
<h2>Make it a family matter</h2>
A family budget isn’t dramatically different from your run-of-the-mill budget. The main difference is just that it has to account for the income and spending of your entire household: that’s you, your kids and, if it’s a two-parent household, your partner.
If you are building a family with your partner (or just getting started), you may want to consider creating a budget both of you can understand. This will make it much easier for both of you to follow. So just make sure it has a clear format for your income, expenses and total balance, and that it’s kept in an easy-to-find location – whether that’s on your desktop or in a manilla folder.
You’ll also want to involve your partner when you’re making the budget. Not only will this help you build a clearer picture of how much money the two of you are bringing in and where it’s going, but it can ensure you’re both on the same page with your finances.
<h2>Planning for your first child</h2>
Are you an expectant parent getting ready for your first child? If so, then congratulations are in order! If not, then it’s safe to say you can skip this section. Single folks and couples without kids – we see you and love you.
However, if you’re planning to welcome a little bub into the world, then there’s probably a lot on your mind. For one, you might be wondering how much it costs to raise a child.
According to the Australian Institute of Family Studies, your first child could cost anywhere from $3,000 to $13,000 before it turns one<a href="#1">1</a>. That’s a broad range, to say the least. And while you’re planning out your future budget, it can be a little tricky to take all of these coming expenses into account.
That’s why it might help to strip everything back to the basics as a first step. Jot down a list of the bare necessities to plan for your first child, essentials like:
<ul>
<li>Cot or crib</li>
<li>Pram or stroller with reclining action</li>
<li>Changing table</li>
<li>Baby ointment (to prevent those annoying rashes!)</li>
<li>Disposable baby wipes</li>
<li>Nappies with sticky strips in place (or safety pins/velcro snaps to hold cloth nappies in place)</li>
<li>Clothes (undershirts, onesies, pants, tops, hats, socks, booties, scratch mittens, jackets)</li>
<li>Cotton blankets</li>
<li>Baby bottle</li>
<li>Dummy</li>
<li>Bibs and burp cloths (so you don’t get baby spew on your clothes. But honestly, you probably still will.)</li>
<li>Breast pump and milk storage containers</li>
<li>Nursing pillow, nursing bras, and breast pads</li>
<li>Lotion for sore nipples (from frequent breastfeeding and breast pumping).</li>
<li>Baby bath tub</li>
<li>Wash cloths</li>
<li>Baby soap, baby hair brush and baby towels (aww)</li>
<li>Nail clippers</li>
<li>Baby thermometer</li>
<li>Medication in case your baby gets a fever</li>
<li>Safety car seat</li>
<li>Family health insurance.</li>
</ul>
Estimating these expenses will help you plan out your budget for the months to come. You can get a good sense of the added costs you’ll need to cover and prepare for them in advance.
<h2>Add up your expenses</h2>
It’s also worth sitting down with your partner and writing down a list of your other expenses, both the essentials and non-essentials.
Your day-to-day essentials would include things like:
<ul>
<li>rent or mortgage repayments</li>
<li>car or public transport fares</li>
<li>childcare requirements</li>
<li>groceries and utilities</li>
<li>health, household, and other types of insurance</li>
<li>electricity, gas, and water bills</li>
<li>internet and mobile bills.</li>
</ul>
Once you’ve covered the bases, consider your non-essential spending: are you buying a lot of takeaway or video games for the kids? If so, ask yourself whether having these things would make a significant impact on your family’s day-to-day life if you didn’t spend as much on them. Like many of us, if you find yourself making frequent emotional or impulsive purchases, learn more from our main money-saving tips <a href="/blog/how-to-save-money/">here</a>.
<img decoding="async" loading="lazy" class="aligncenter wp-image-3910 size-medium" src="https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-2-People-sitting-on-a-couch-staring-at-a-computer-1-300x300.png" alt="A couple planning at a laptop" width="300" height="300" srcset="https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-2-People-sitting-on-a-couch-staring-at-a-computer-1-300x300.png 300w, https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-2-People-sitting-on-a-couch-staring-at-a-computer-1-1024x1024.png 1024w, https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-2-People-sitting-on-a-couch-staring-at-a-computer-1-150x150.png 150w, https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-2-People-sitting-on-a-couch-staring-at-a-computer-1-768x768.png 768w, https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-2-People-sitting-on-a-couch-staring-at-a-computer-1.png 1080w" sizes="(max-width: 300px) 100vw, 300px" />
<h2>Calculate your income</h2>
After you’ve tallied up your expenses, you’ll want to work out how much money’s coming into your household. If you’re a two-parent family, both you and your partner will need to add up your respective incomes. This could come from a variety of sources too, such as:
<ul>
<li>work salary</li>
<li>interest accrued from savings accounts</li>
<li>government benefits (e.g. Parenting Payment, Family Tax Benefit)</li>
<li>gifts</li>
<li>selling items you own or made (e.g. paintings, jewellery, etc)</li>
<li>passive income (e.g. rental income, affiliate marketing, etc).</li>
</ul>
Next, you’ll want to compare your monthly income against your expenses. If you’re earning more than you’re spending each month, then this is good news. It means that you’re bringing in money that you can put towards your debts, investments or even that cute cubby house for the kids.
If, however, you’re spending more than you’re bringing in, then it might be time to take another look at your expenses. A budget ‘in the red’ could be one that empties your savings account or pulls you into debt if left unchecked; so let’s look at how you might go about fixing this.
<h2>Audit your non-essentials</h2>
If you look at your spending in the past 12 to 24 months or so, you’ll get a good idea of where most of your money went and an indicator of where you’ll keep spending it. Take a look through old payslips, cheques, receipts, and statements to better gauge your habits. Chances are you’ll find a pattern of some non-essential items that are doing little more than sucking your savings. So, give yourself an audit. No one really needs three online streaming accounts – or do they?
Non-essential things such as entertainment, gifts, holidays, or various other ‘treats’ can be put to the side to make room for mid to long term payments such as:
<ul>
<li>household maintenance costs</li>
<li>school uniforms, textbooks, and stationery</li>
<li>medical and dental fees</li>
<li>registration fees and equipment for sports, music, or hobbies.</li>
</ul>
<h2>Look at the bigger picture</h2>
Once you’ve audited your spending on non-essential items, it might be nice to sit down and talk about your dreams and long term goals with your partner. But if you’ve been together for some time, it’s likely you’ve already got a fair idea of which direction you’d like to take your family together.
Perhaps you’re both keen travellers and want to be able to take your family on annual holidays? Or take a six-month road trip around Australia? Or move to a bigger house?
Having a long term dream to work towards together is a strong motivator for sticking to your family budget. <a href="https://pubmed.ncbi.nlm.nih.gov/11374746/">Fantasy realisation theory</a> supports the idea that we can find great momentum in achieving our long term goals when we contrast our dreams of the future with our present reality.
This theory advocates for a more practical approach that differs from purely fantasising about the future, which can be rather dispiriting at times. And it also takes you out of the hum-drum of everyday routine – no one likes to feel like Bill Murray in Groundhog Day.
So when you decide to sit down and have a chat with your partner about your future, don’t just fantasise and forget about where you are now, and don’t just talk about the present without considering the future. Link them together and visualise the journey on the way. Then, get to work.
<h2>Create your future budget</h2>
Now that you have a grasp on your finances and some goals to keep you motivated, you’ll want to create a budget for the month to come. Provided you follow it, this budget should also help you limit your spending.
Generally, you’ll want to draw up your budget with the following sections:
<ul>
<li>income</li>
<li>essential expenses</li>
<li>non-essential expenses</li>
<li>balance (income minus expenses).</li>
</ul>
Of course, when you’re budgeting for next month, your projected income and expenses might just be estimates. That’s okay though! We’ll talk about what to do if you overshoot these figures in the next section.
For the meantime, you’ll just want to write up your budget. Doing so with pen and paper works just fine, though if you prefer, you can also use:
<ul>
<li>software like Microsoft Excel and Google Sheets;</li>
<li>budget planning phone apps; and</li>
<li>Moneysmart’s <a href="https://moneysmart.gov.au/budgeting/budget-planner">budget planner</a>.</li>
</ul>
Once that’s all done you’ll have a spiffy, brand-new budget ready for use. Try to stick with it for the month to come – especially if you set a limit on the non-essential expenses – and circle back when the time comes to create another budget.
<h2>Review your progress</h2>
Once your budget period has come to an end, it’s time to look at how much you actually spent in the last month: your real income minus your expenses. Does it match what you planned? Or did something unexpected force you to spend a little more than you intended?
If it’s the same as your intended balance then you can breathe a sigh of relief. You followed your budget to the letter and you’re on the way to meeting your financial goals.
If it’s higher than your intended balance, that’s even better! You might have brought in some extra income or spent even less than you intended for the month. Now you have some additional money to save up or put aside for an emergency.
If it’s lower than your intended balance then this might be worth investigating. If you’re unable to hit your monthly budget goals then this will negatively impact your long-term financial goals, so it’s important to work out why this happened.
If it’s simply a matter of buying too many non-essentials, that’s easy enough to fix on your own. But sometimes you can still do everything ‘right’ and life will still find a way to mess with your plans. Maybe there was a medical emergency you had no way of predicting. Or maybe the budget was too strict or too unrealistic for you to ever hit.
None of which is the end of the world! It just means you have to adjust your next budget to make sure it’s easier to stick with.
<h2>Adjust as necessary</h2>
There are a couple of ways you might be able to revise your budget. For instance:
<h3>Make substitutions</h3>
When it comes to certain expenses, swapping out one kind product for a cheaper brand could help you free up some funds. For instance, caffeine addicts could replace their premium instant coffee with a less expensive home brand; or maybe it’s time to switch out the kids’ pricey, high-sugar cereal with Weet-Bix.
<h3>Plan for emergencies</h3>
If sudden or unexpected emergencies are blowing out your budget then you might want to plan for them ahead of time. Factor these into your future expenses so that you’ll have a more accurate view of the month ahead. Even a rough estimate can give you some idea of how much you’re likely to spend.
<h3>Revise your long term goals</h3>
Let’s say you want to save up $10,000 for the year but you only managed to save up $500 last month, even after cutting back on non-essentials. If the goal just isn’t realistic, you might need to adjust the timeline to two years. That way, you can adjust your budget so that it’s actually achievable.
Now, when you sit down to write your next budget, you’ll be able to craft something that’s more realistic and can better predict where your finances will stand at the end of the month. Remember, you want something to aim for, but you don’t want a budget that’s so unrealistic there’s no chance of following through.
<h2>A final word</h2>
If you’re still struggling to meet your financial goals, then it might be worth looking at certain day-to-day essentials: such as your insurance and utilities bills. Comparing the cost of different providers may be able to help you get a new deal at a more competitive price.
iSelect* might be able to help out on this front, too. With us, you can <a href="https://www.iselect.com.au/">compare a range of different products and plans</a> online: from home loans to life insurance to credit cards. So if you’re looking for a suitable lender or utility provider, it might be worth getting started today. We’ll do our absolute best to help you!
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1 <a href="https://www.abc.net.au/news/2021-01-15/parenting-babies-money-budgeting-finance-families/12782662">https://www.abc.net.au/news/2021-01-15/parenting-babies-money-budgeting-finance-families/12782662</a>

How to Create a Family Budget

There’s no doubt the last few years have been tough for most Aussies. The COVID-19 pandemic has changed our lives and made us think more about our health and safety, particularly older Aussies, or people with medical conditions.
Most of the population is now fully vaccinated<a href="#1">1</a> and tough restrictions are hopefully a thing of the past. This year, you could be feeling less concerned about your health and more worried about your finances. This may prompt you to review your household bills and work out what’s worth paying for. That’s why, it’s also good to understand the value of life insurance. We chatted to Imran Lalani from iSelect’s life insurance partner, Lifebroker, to bring you up-to-date.
<h2>We know Australian households are under increasing financial pressure. What’s the point of having life insurance? Do people need it?</h2>
Although taking out life insurance cover is a personal decision depending on your circumstances and needs, people often think life insurance only covers you for death.
There are in fact, <a href="https://moneysmart.gov.au/how-life-insurance-works">different types of life insurance products</a>, designed to financially protect you and the lifestyle and future you’re building for yourself and your family. Life insurance can offer peace of mind in the event an accident, serious illness or even death.
Life can change suddenly, and if something were to happen to you:
<ul>
<li>Life cover can help give you peace of mind by providing your loved ones (known as your beneficiary/s) with financial support through a lump sum payment if you were to pass away.</li>
<li>Total and Permanent Disability insurance can help cover rehabilitation and living costs if you’re permanently disabled and are unlikely to ever return to work again.</li>
<li>Income Protection insurance can replace part of your income so you can keep up with everyday expenses if you’re off work for a prolonged period due to sickness or injury.</li>
<li>Critical Illness insurance can cover you if you’re diagnosed with a major illness of specified severity as defined by the particular life insurer.</li>
</ul>
Would you have enough savings in your bank account to cover your financial commitments such as rent or mortgage, school fees or grocery bills, if anything happened to you? It’s during some of life’s toughest times that life insurance can offer a safety blanket of financial protection for you and your family.
<h2>How much does it cost, and how do you work out what cover you need?</h2>
Contrary to what people may believe, life insurance cover can be tailored to your individual needs to help keep premiums at a level that’s affordable to you. Information about how much the policy will cost (the premiums you need to pay), and how they might change over time, are generally laid out in the Product Disclosure Statement (PDS) of the policy. For example, with Income Protection a way you can reduce your premium could be by reducing your benefit period and/or increasing your waiting period. However, it’s a good idea to check the PDS of a particular policy when doing your research to ensure the cover is suitable to your individual circumstances. <a href="https://moneysmart.gov.au/how-life-insurance-works">Doing this can also give you an idea about:</a>
<ul>
<li>what&#8217;s covered and what&#8217;s excluded under the policy</li>
<li>what information you&#8217;ll need to give an insurer</li>
<li>Waiting Periods before you make a claim</li>
<li>how to make a claim</li>
<li>how to complain about the claims process or decision.</li>
</ul>
You may be able to get cover in or outside of superannuation. If you’re considering life insurance from an insurance provider, it’s a good idea to check with your super provider to confirm whether you already have default <a href="https://moneysmart.gov.au/how-life-insurance-works/insurance-through-super">life insurance cover inside super</a>, and understand what you are and aren’t covered for.
You can also compare life insurance via iSelect from <a href="https://www.iselect.com.au/life/available-life-insurance-products/">Lifebroker’s range of life insurance plans and providers</a>.
<h2>What about if you’ve had COVID-19, will this impact your life insurance policy? What about having had a COVID-19 vaccination?</h2>
More than <a href="https://www.health.gov.au/sites/default/files/documents/2022/05/covid-19-vaccine-rollout-update-3-may-2022.pdf">95% of Australians aged 16 and over</a> have completed a course of the Australian Therapeutic Goods Administration (TGA) approved or recognised vaccine against COVID-19. So, it’s only natural to wonder if there are any implications and whether your decision to get vaccinated could affect your ability to access life insurance cover.
Some of Australia’s largest life insurance companies have come together to reassure Australians that getting a COVID-19 vaccination will not affect your ability to claim on your existing life insurance policy <a href="https://wehaveyoucovered.com.au/">now or in the future</a>. This initiative is supported by life insurance providers including AIA, ClearView, MetLife, MLC, OnePath, Resolution Life, TAL and Zurich.
You may be eligible to get life insurance even if you’ve had COVID-19, provided you meet the eligibility criteria. Life insurers generally ask you health and lifestyle-related questions as part of the application assessment process. Each policy might have different eligibility criteria and it’s best to always read the Product Disclosure Statement (PDS) of the policy you’re applying for before deciding to apply.
We know comparing life insurance can be time-consuming and confusing! That’s why iSelect has partnered with Lifebroker to help you compare from Lifebroker’s range of plans and providers. Save time and effort by <a href="https://www.iselect.com.au/life/available-life-insurance-products/">comparing life insurance</a> with our trusted partner, Lifebroker.
<hr />
1 <a href="https://www.health.gov.au/initiatives-and-programs/covid-19-vaccines/numbers-statistics">https://www.health.gov.au/initiatives-and-programs/covid-19-vaccines/numbers-statistics</a>

Life Insurance: What It Is, How It Works & Why You Need It

When we hear the word ‘wedding’ we might immediately think of an extravagant, expensive event with never-ending food, booze and shenanigans, but the truth is that your dream wedding doesn’t necessarily need to be some huge, bank-breaking blowout.
<h2>How much does a wedding cost?</h2>
According to a 2022 Wedding Industry Report by Easy Weddings<a href="#1">1</a>, the average Australian couple spends $32,228 on their wedding. A hefty price tag indeed – and no doubt one that’s already raising a few eyebrows!
Where does that can of money actually go, though? Well, according to the report, the average costs include:
<ul>
<li>$13,901 for the wedding venue</li>
<li>$5,368 for food and catering</li>
<li>$2,316 for the wedding dress</li>
<li>$1,444 for the formal wear</li>
<li>$1,118 for wedding cars and transport</li>
<li>$905 for photo booth hire</li>
<li>$770 for the marriage celebrant</li>
<li>$760 for invitations</li>
<li>$725 for hair and make-up</li>
<li>$698 for bridesmaid dresses</li>
<li>$558 for wedding cakes</li>
<li>$547 on guest favours (‘bonbonniere’ such as edible gifts and personalised items)</li>
</ul>
If those dollars and statistics make you squirm, then perhaps it’s worth considering what a wedding actually means to you and your partner. To some people, a wedding is something they’ve been dreaming about since they were old enough to scrapbook ‘dream wedding journals’. To others, a wedding is simply an official piece of paper to certify lifelong partnership and reduce taxes and overheads. Sexy.
But whether you’re looking to spend a little or a lot on your wedding, it’s worth planning ahead to make sure the expenses don’t run out of control. This is where a wedding budget can come in handy.
<h2>How do you budget for a wedding?</h2>
Most wedding budgets are pretty straightforward. You just draw up a list of your different expenses – the flowers, the venue fees, and of course, the wedding rings – then create two columns for each. The estimated cost and the actual cost.
We’ll go through how to tackle this shortly; but for now, it’s worth getting everything set up.
Grabbing a pen and paper will work just fine for this. However, if you’re tech-savvy, then you might want to set up your budget in a program such as Google Sheets or Microsoft Excel. It could be easier to adjust your expenses using these programs. You might also be able to find templates for wedding budgets online (like <a href="https://templates.office.com/en-au/wedding-budget-planner-tm89372719">this one</a> from the folks at Microsoft) that can make the whole process even easier
<h2>Step 1: Find out how much you can spend</h2>
Ideally, you don’t want to be spending money you don’t have. So before you decide on a lavish wedding, you’ll want to work out what you can afford and adjust your expectations accordingly. I know, I know – sorry to be a bummer.
The best way to begin here is with a brief assessment of your finances. This includes looking at things like:
<h3>You and your partner’s savings</h3>
It’s important to sit down with your partner and work out how much is saved up in your bank accounts and how much you can spare. At the very least, you’ll want enough money left over after the wedding to cover the costs of an emergency (e.g. sudden medical expenses, car repairs, etc.)
<h3>Your living expenses</h3>
Review the costs of your day-to-day essentials, such as food, rent and utilities, and make sure that the additional wedding costs don’t make money so tight that you’re unable to pay for them. <a href="/blog/how-to-budget/">Creating a regular budget</a> can be particularly helpful here.
<h3>Your other financial goals</h3>
If you want a trip around the world, or a nice house in the suburbs, as well as a huge wedding, then you might need to make some trade-offs. If buying a family home is your number one priority, then putting less money towards your wedding could free up some funds there.
When it comes to your wedding, it might also be better to make a conservative estimate in case some unexpected costs arise. For instance, if you settle on a spending limit of $20,000, it could be a good idea to budget for a $17,000 wedding. That way, you’ll have $3000 left over to cover any extras that come up.
<h2>Step 2: Think about what works for you</h2>
Let’s turn to what you and your partner have in mind for your wedding. Are you looking to exchange your vows inside a beautiful, stately church? A sprawling, outdoor wedding, perhaps? Or is something smaller and simpler more your style?
If you haven’t given this much thought, it’s important to establish a general vision. This will help you estimate your expenses later on and compare them against your budget.
Among other things, you’ll want to consider the following:
<ul>
<li>Where do you want to get married?</li>
<li>Who will be your celebrant?</li>
<li>How will you get there?</li>
<li>How many people will you invite?</li>
<li>What kind of flowers and decorations do you want?</li>
<li>What will you wear on the day?</li>
<li>What will your bridesmaids and groomsmen wear?</li>
<li>Do you want a professional to take photos or videos of your wedding?</li>
<li>How many wedding cars or alternative transport options will you need?</li>
</ul>
Additional necessities and services that can affect the cost of your wedding also include:
<h3>Wedding planners</h3>
A good wedding planner can take a lot of stress off your shoulders, helping to organise everything from the menu to the floor plans. However, they generally cost upwards of $1,000. So if you think you’re up to the challenge, you can try to organise the wedding yourself.
<h3>Invitations</h3>
You’ll have a few options here. You can create the invitations yourself or get a professional designer to make them. Alternatively, you can send out e-invites if you don’t feel like buying reams of stationery.
<h3>Wedding rehearsals</h3>
This can give everyone a chance to do a practice run before the big day. That way, you can smooth out any hiccups where logistics or speeches are concerned the first time round. You don’t always have to do this on-site either – a brief meeting or dinner with the bridal party may be enough to get everyone on the same page.
<h3>Chair and furniture hire</h3>
Depending on who you choose, your wedding venue may provide all the essentials when it comes to furniture. However, if this isn’t the case, then you’ll need to bring your own tables and chairs or cover the costs of hiring them.
Generally speaking, a wedding with a smaller guestlist and less extras will cost less than a more extravagant wedding. Of course, a modest celebration isn’t for everyone. Some couples have that irresistible vision of a beach wedding in their heads, or have large, extended families whose presence will make the day extra special.
<img decoding="async" loading="lazy" class="alignnone wp-image-3889" src="https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Budgeting-for-a-wedding-2.jpg" alt="Budgeting for a wedding" width="750" height="462" />
<h2>Step 3: Estimate the costs</h2>
Right. So now that you’ve got a sense of what your wedding will look like, it’s time to get an estimate on the costs. This will be all the expenses you’ve written down on your budget, plus any others you didn’t think of before. To begin:
<h3>Get an actual price</h3>
Don’t just guess how much everything will cost. For each expense – be it a wedding planner or a live band – you’ll want a rough estimate. It’ll be more work, but it’ll also save you a lot of hassle down the track.
<h3>Check their websites</h3>
Google what you’re looking for. Most churches, venues and services have their prices written on their websites. If not, they should at least have a contact number or message function which you can use to fetch a quote.
<h3>Compare services</h3>
Different businesses, suppliers and venues charge different rates, and comparing them might be able to help you find a competitive price. There are even online comparison services for weddings that can make the process easier.
Once you’ve done your research, you can get started on your budget and fill in the estimated costs. Then, you’ll want to add everything up to get the total cost of your wedding.
<h2>Step 4: Save where you can</h2>
If your estimated costs match the spending limit you’ve set for the wedding, then you can relax for a bit. However, if the wedding you’ve envisioned has outgrown your budget, then you’ll want to look at where you can start reducing the costs.
The good news is that you might not need to give up on your dream of that special day. In most cases, it just means you have to make some slight adjustments. For instance:
<h3>Cut the non-essentials</h3>
Prioritise what’s most important to begin. If you need to make cuts to your wedding, start with what’s least essential; a beautiful wedding dress is probably non-negotiable, but do you absolutely need to hire a photo booth? It all comes down to what you and your partner value most.
<h3>Let the bridesmaids pick for themselves</h3>
Instead of forking out for six expensive dresses, you could settle on a general colour scheme and let your bridesmaids wear something that’s already in their wardrobe. Or forget matching colours – how about similar styles?
<h3>Go for a playlist instead of live music</h3>
If a live band isn’t one of your need-to-haves, then you could always create your own wedding playlist. That way, you can save money on a DJ without emptying the dance floor.
<h3>Get a pre-loved wedding dress</h3>
As part of their industry report, Easy Weddings found that 1 in 20 of the brides surveyed planned to buy a second-hand dress<a href="#1">1</a>. It’s not hard to see why either – especially when most pre-loved dresses come at a considerable discount.
<h3>Ask your friends for help</h3>
Your friends and family might be able to assist with other costs as well. If you know someone who’s a baking whiz, they might be able to prepare your wedding cake for you. Or maybe you’re mates with a photographer who’s willing to do some pro-bono work.
<h3>Aim for the off-peak season</h3>
Some months are more popular – and pricier – than others when it comes to weddings. According to the 2022 industry report from Easy Weddings<a href="#1">1</a>, the most popular periods for weddings were February-April and September-November. Alternatively, the off-peak seasons in July-August or December-January are typically more affordable.
<h3>Consider a micro-wedding</h3>
ABC News reports this as an increasingly popular option in Australia<a href="#2">2</a>. While your typical weddings have 80 or 100 guests, a micro-wedding has much less. As such, they tend to be more intimate and affordable, even when you factor in the costs of a venue, catering and live music.
<h3>…or maybe a backyard celebration</h3>
Another ABC News report<a href="#3">3</a> makes mention of a backyard wedding that only cost the couple $1500. If you and your partner aren’t looking for anything too fancy, a celebrant, some home cooking and red wine might be all you need.
By making these kinds of adjustments, you might be able to get the cost of your wedding well within your budget. Just update the estimated costs as you update these expenses and ensure the new total is something you can afford.
<h2>Step 5: Track your spending</h2>
Now that you’ve got a working budget, it’s time to start organising the wedding. First, use your new estimated costs as a loose spending limit; then, as you put down deposits for things like catering, dresses and venue hire, you’ll want to record the cost in the ‘actual cost’ column.
By doing so, you can easily compare these expenses with the ‘estimated costs’. If you find that the actual costs are exceeding these predictions by a fair amount, it’s probably because you aren’t actually sticking to the budget.
Remember, you don’t want to spend too much more than your estimated costs. This will either force you to spend more than you originally planned or to make further cuts to your wedding later on. So it doesn’t hurt to regularly review how much you’re spending and scale back on certain expenses if you’ve overspent on others.
<h2>Don’t forget the honeymoon!</h2>
Moving on from your wedding budget to something more exciting, let’s talk about your honeymoon. After all, you and your partner deserve some bonding time after the busy lead-up to your big day!
The 2022 industry report from Easy Weddings pegs the average honeymoon at a $5,752 cost<a href="#1">1</a>. Depending on the location you choose and how long you holiday for, your honeymoon could cost more or less than this average, but the important thing is to budget for this expense as you would your wedding.
In this case, you’ll want to estimate the specific costs of your honeymoon. This might include:
<ul>
<li>Any plane tickets or transport expenses</li>
<li>Accommodation (e.g. hotels)</li>
<li>Food and drinks</li>
<li>Tours and recreation (e.g. scuba diving, massage services)</li>
</ul>
Again, you’ll want to add up these estimated costs and set aside enough funds to cover them. As with your wedding, you’ll also want to incorporate these costs into your regular budget, just to make sure your finances can handle whatever you have planned. That way, you can leave your worries far behind while you get cosy with your spouse.
<h2>Whether you’re considering a big blowout or a tiny registration day&#8230;</h2>
Think about the right safeguards to consolidate your future together regardless of your wedding situation. For those of us who are more practical and prefer to show our love with acts of service rather than with gestures and gifts, choosing suitable <a href="https://www.iselect.com.au/health-insurance/?utm_source=google&amp;utm_medium=cpc&amp;utm_campaign=he_bau-generic-brand-exact_dr&amp;utm_term=iselect-health-insurance&amp;ds_rl=1272564&amp;ds_rl=1255798&amp;ds_rl=1272564&amp;gclid=CjwKCAjwu5CDBhB9EiwA0w6sLcuNFeoiQqk_tnYr-oAvKE9EtAAueabxuEw77YGzfM072dr7l2AMehoCNGIQAvD_BwE&amp;gclsrc=aw.ds">health</a>, <a href="https://www.iselect.com.au/life/">life</a>, and <a href="https://www.iselect.com.au/home-and-contents/">home insurance </a>for you and your partner might seem boring, but this kind of life admin is often on many newlyweds to-do list. So perhaps show your partner some, ehhh&#8230; PLC (practical love and care) and take care of it before the big day. Save the TLC for the bedroom.
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1 <a href="https://www.easyweddings.com.au/business/australian-wedding-industry-reports/?refresh">https://www.easyweddings.com.au/business/australian-wedding-industry-reports/?refresh</a> 
2 <a href="https://www.abc.net.au/news/2022-04-14/choosing-to-elope-or-hold-a-microwedding-popular-in-australia/100908020">https://www.abc.net.au/news/2022-04-14/choosing-to-elope-or-hold-a-microwedding-popular-in-australia/100908020</a>
3 <a href="https://www.abc.net.au/news/2017-12-13/how-to-save-money-on-your-wedding-your-tips/9249728">https://www.abc.net.au/news/2017-12-13/how-to-save-money-on-your-wedding-your-tips/9249728</a>

How to Plan a Wedding On a Budget In 2022

The Ultimate Guide to Selling Second-Hand Clothes

With Australia’s cost of living steadily on the rise<a href="#1">1</a>, the art of saving money is more important than ever. But how exactly are you meant to build up some extra funds amidst all the growing expenses? Well, we’ll do what we can to help with some quick tips for 2022 and beyond.
<h3>Tip 1: Keep money in a savings account</h3>
Since most savings accounts don’t have a debit card attached, it’s much harder to make impulse purchases with them. As such, putting your money into a savings account may help you to save more – just make sure you have enough in your transaction account to cover the daily essentials.
<h3>Tip 2: Go for cash over cards</h3>
According to Drazen Prelec, a Professor of Management Science and Economics at the MIT Sloan School of Management, people tend to spend more money with credit cards than they do with cash<a href="#2">2</a>. They also tend to make more impulse purchases.
For this reason, it’sit may be better to leave your cards alone whenever you can. Though, if you do use cash, just make sure to wash your hands afterwards. With COVID-19 still around, it pays to be a little bit cautious.
<h3>Tip 3: Pay off your credit cards each month</h3>
Credit cards can be awesome, especially when you want to buy that brand new iPhone or Smart TV you don’t have the cash for. But it’s for this very reason that credit cards can also be dangerous.
Most credit cards rack up interest, and over the months this could cost you more in hundreds, or even thousands, than you’d otherwise pay. That’s why it is generally recommended to pay off the card in full every month before the due date on your monthly statement in order to avoid any late fees.
<h3>Tip 4: Say goodbye to debt</h3>
Aside from your credit card, you may want to consider reducing your other debts whenever possible. This can especially be true for debts that accrue interest, such as home loans or personal loans.
Generally speaking, the faster you pay off such loans the less you’ll have to pay in interest over the long-term. So you’d essentially be paying off more immediately to save more in the future. However, it’s also important to check the terms and conditions of these loans, as some will have early exit or “break fees” if you pay them off before the loan term ends.
<h3>Tip 5: Ditch old subscriptions</h3>
Did you sign up for audible ages ago but still haven’t gotten through a backlog of a dozen audiobooks? Or maybe you signed up for a Netflix account you haven’t used in months? If so, it might be time to cancel one of these subscription services.
As noted by Moneysmart, you might also want to have a look through your old bank and credit card statements for anything that isn’t essential<a href="#3">3</a>. You could end up finding regular expenses that have slipped your mind – an old gym membership, perhaps. These can be easy expenses to drop if you no longer need them.
You don’t always have to completely cancel these subscriptions or membership services either. If you think you might use it again in the future, there may be an option to “pause” the service and resume it at a later time.
<h3>Tip 6: Make substitutions</h3>
As mentioned in our blog post on budgeting for a family, you don’t need to give up everything you love to save more money. Instead, you might need to make some trade-offs – switch out some expenses with a more affordable option. For instance:
<ul>
<li>Instant coffee instead of a daily latte from the city cafe</li>
<li>Buying clothes from an op shop instead of an upmarket department store</li>
<li>Second-hand books instead of brand-new paperbacks</li>
</ul>
These kinds of simple changes can quickly add up to considerable savings in the long-term. So it’s worth looking at every area of your finances to see where these substitutions can be made.
<h3>Tip 7: Cut down on meat</h3>
For any meat-lovers out there, this is a tough ask. However, if you can cut down on the beef and seafood, your budget may thank you for it.
According to a 2018 study by Deakin University, the average family can save about $1800 by adhering to the Planetary Health Diet<a href="#4">4</a>. This diet still makes room for some meat products (namely chicken and fish), but recommends a much more modest amount compared to fruits, vegetables and whole grains<a href="#5">5</a>.
Scaling back your meat consumption just takes some small, practical changes. If you eat beef or lamb twice a week, you could always change it to a Monday-only thing. Or, you could just make the portions of meat smaller while piling on more veggies. Whatever works for you, so long as it helps you cut back! &gt;/p&gt;
<h3>Tip 8: Cook your own meals</h3>
There’s nothing like having a delicious meal delivered straight to your door. Unfortunately, all those takeaway costs can quickly add up.
It might be better, and cheaper, to stick to your own cooking. Having some quick-and-easy recipes in your arsenal can definitely help on this front too. Sesame stir fry, anyone?
Meal prepping is another good strategy to avoid the temptation of fast food. A lot of people like to use Sunday afternoons or evenings to prepare their meals for the week. It could make a lot of difference if you’ve got meals ready to go in the fridge or freezer – just chuck a ready-made meal in the oven or microwave when you can’t be bothered cooking after a long, busy day.
<h3>Tip 9: Get savvy with grocery shopping</h3>
Going from well-known labels to inexpensive “home brands” can be a great way to save money on your grocery bill. Or, if you’re not a fan, you might prefer to focus your shopping on items that are on special. If there’s a deep discount on items you regularly, it may even be worth buying in bulk – that way, you’ll have enough in stock until the next price drop.
However, you’ll always want to check the “price per unit” on whatever item you’re buying and try to get the most out of your money. Sometimes, an item that’s on sale will still cost more than another brand, so it’s definitely worth comparing
<h3>Tip 10: Kick unhealthy habits</h3>
If you’ve been wanting to give up smoking or alcohol for a while, now might be the best time to do so. It can help you kill two birds with one stone – freeing up more funds while taking care of those pesky vices.
Different strategies will work for different people too. For instance, some people gradually cut down on their vices, steadily reducing the amount they consume and increasing the time between consumption. According to the Department of Health<a href="#6">6</a>, most smokers try an opposite approach, quitting cold turkey and avoiding “triggers” that will make them want to smoke, such as going to the pub or hanging around smokers.
While effective, quitting cold turkey can also cause withdrawal symptoms, especially when it comes to substances such as alcohol. So if you’re considering this method, it’s best to consult a health professional first.
<h3>Tip 11: Set savings goals</h3>
Having something to strive for when you’re saving can really put you in the right mindset. Maybe it’s something as general as getting out of debt, or maybe you want to save up an extra $5,000 by the end of this year so you can finally take that trip to Paris. Whatever the reason, keeping a future reward in mind may help you to save whenever you feel like spending.
Just remember that it’s usually better to keep it simple. According to one study in the Journal of Marketing Research, a single savings goal can be more effective than multiple, competing savings goals<a href="#7">7</a>. For instance, trying to save up for a house deposit as well as a holiday may prove difficult; it’s often better to focus on the more important of the two.
<h3>Tip 12: Make yourself accountable</h3>
Telling people about your savings goals can also keep you on the right track. It’s easy enough to renege on a promise you’ve only made to yourself, but if you tell your best friend about that new car you’re saving up for and then fall short of that goal, well, you’re going to have a bit of an embarrassing conversation in the future…
It’s not a pleasant way to keep yourself motivated, but it can help. Heck, you don’t even have to involve other people. You can even set yourself a negative consequence for failing to meet your goal: going without a weekly treat or passing up on that purchase you wanted. Sometimes, pain really is the best teacher.
<h3>Tip 13: Sell what you don’t need</h3>
If you’re like most people, then chances are that you have some clutter lying around the house. Stuff that you don’t use but just haven’t gotten rid of.
Instead of simply throwing this stuff away, why not try selling it? You can offer it to a friend, hold a garage sale or sell it through an e-commerce website. Among other things, some items that might fetch a decent price include:
<ul>
<li>Old clothing</li>
<li>Books</li>
<li>Jewellery</li>
<li>Electronics</li>
<li>Furniture</li>
</ul>
And while it might not give you a small fortune, at the very least you’ll have a bit more money in your wallet and a lot more space in your home.
<h3>Tip 14: Think about refinancing</h3>
It’s not unusual for a fair amount of someone’s income to go to their home loan and mortgage repayments when they have a house. And though this might seem like a fixed expense, refinancing may help reduce these expenses.
Refinancing simply means switching out your old home loan policy to a new one, typically with a new provider. People sometimes do this because the new home loan policy has a lower interest rate, meaning they might not need to pay as much over the life of their loan.
Of course, this is not a decision to be made hastily. And you should always check the other aspects of the new loan – including the comparison rate and any fees, as well as any exit fees with your current loan provider – before organising anything.
If you are interested, we can definitely help too. At iSelect, we’ve partnered with Lendi to make it easier to find a great deal on your home loan. <a href="https://www.iselect.com.au/home-loans/">Click here</a> to get started comparing from a range of lenders online, or give Lendi a call on 1300 186 260.
<h3>Tip 15: Take a closer look at your car insurance policy</h3>
Like many drivers, chances are you’ve been with the same car insurer for years. But have your premiums decreased with your years of experience? Or are you still paying more or less the same amount that you were five years ago?
You might like to consider doing some car insurance window shopping, especially because the costs can significantly vary. Just remember to check the insurer’s Product Disclosure Statement to ensure you’re getting the right cover for your needs.
If you’d prefer not trawl endless websites, you can always <a href="https://www.iselect.com.au/car-insurance/">compare a range of car insurance policies</a> with iSelect online. That way, you can check out the different kinds of premiums and benefits on offer.
<h3>Tip 16: Shop around for health insurance</h3>
If you’ve got private health insurance, it might be worth taking a closer look at your policy to see if you could better tailor it to your health needs and budget.
Perhaps you’re paying for pregnancy when your baby-making days are well and truly behind you? Or maybe you’re paying for cataracts despite being decades away from retirement?
If you look closer at your health insurance policy, you might notice that you’re actually covered for a lot more than you really need, particularly when it comes to extras.
You could consider adjusting your excess level to reduce your annual premium or shop around and see what your other options are available with a different health fund. You could end up with a policy that’s either much cheaper, or better value for a similar price.
iSelect can also help on this front. With us, you can <a href="https://www.iselect.com.au/health-insurance/">compare health insurance policies</a> from a range of providers to help you find suitable and cost-efficient cover.
<h3>Tip 17: Find cheap entertainment</h3>
It helps to keep yourself distracted when you’re trying to avoid unnecessary expenses. If you spend the weekend going on nature walks or strumming a guitar you’re less likely to buy that new video game or make use of a streaming service.
Picking up inexpensive hobbies – drawing, gardening, music – can be one way to avoid the temptation to spend. Another is to replace big nights out with something cosier. Maybe you and your mates can enjoy a house party instead of going out. Trust us, you won’t miss the overpriced drinks.
<h3>Tip 18: Set a spending limit before you go out</h3>
When you need to go out to spend some money on groceries, gifts or recreation, it helps to set a spending limit in advance. This is another one of those things that seems obvious, but it’s actually really easy to get carried away on those big days (or nights!) out.
So set yourself a limit and don’t spend anything beyond that, barring an emergency. Doing so can also help in the long-term when you’re <a href="/blog/how-to-budget">making a budget</a>, but it’s worth trying on a smaller scale first.
<h3>Tip 19: Try your hand at homemade gifts</h3>
It’s the thought that counts, right? The next time a friend’s birthday rolls around, why not create something yourself instead of spending heaps on an expensive gift? I know, it sounds cheap, but done right it can make for something both heartfelt and memorable.
A collage with your photos is a classic way to go about it, but don’t be afraid to draw on your talents in other areas. Anyone who can paint, knit or make jewellery has a skill that they can use to create something wonderful for their loved ones.
<h3>Tip 20: Reconsider your gas and electricity use</h3>
A lot of us just pay our energy bills without even looking at them (thanks, direct debit), but if you take the time to see how much you’re actually using each month or quarter, you could find that you’re not necessarily getting a competitive deal.
There are simple things you could do around the house, like using hot water instead of cold for your washing, choosing energy-efficient light bulbs, and turning off powerpoints when you aren’t using them.
And while reducing how much energy you use is a good idea, also look to reduce how much you pay by comparing how your current energy plans stacks up against other offers. You can <a href="https://www.iselect.com.au/energy/">compare plans</a> from a range of providers with iSelect to find one that suits your lifestyle and budget. Get started now!
&nbsp;
<hr />
1 Source:<a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/mar-2022">https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/mar-2022 
</a>
2 Source:<a href="https://mitsloan.mit.edu/experts/how-credit-cards-activate-reward-center-our-brains-and-drive-spending#:~:text=People%20tend%20to%20spend%20more,and%20make%20more%20impulse%20buys">https://mitsloan.mit.edu/experts/how-credit-cards-activate-reward-center-our-brains-and-drive-spending 
</a>
3 Source:<a href="https://moneysmart.gov.au/saving/simple-ways-to-save-money">https://moneysmart.gov.au/saving/simple-ways-to-save-money 
</a>
4 Source:<a href="https://www.deakin.edu.au/about-deakin/news-and-media-releases/articles/sustainable-eating-is-healthy-for-us-and-the-planet,-and-saves-money-too">https://www.deakin.edu.au/about-deakin/news-and-media-releases/articles/sustainable-eating-is-healthy-for-us-and-the-planet,-and-saves-money-too 
</a>
5 Source:<a href="https://eatforum.org/content/uploads/2019/07/EAT-Lancet_Commission_Summary_Report.pdf">https://eatforum.org/content/uploads/2019/07/EAT-Lancet_Commission_Summary_Report.pdf (Page 9-14) 
</a>
6 Source:<a href="https://www.health.gov.au/health-topics/smoking-and-tobacco/how-to-quit-smoking/quitting-methods">https://www.health.gov.au/health-topics/smoking-and-tobacco/how-to-quit-smoking/quitting-methods 
</a>
7 Source:Soman, Dilip, and Min Zhao. <a href="https://journals.sagepub.com/doi/abs/10.1509/jmr.10.0250">&#8220;The fewer the better: Number of goals and savings behavior.&#8221; 
</a>Journal of Marketing Research 48.6 (2011): 944-957.

20 Practical Ways to Save Money This Year

Budgets can be a great way to take control of your finances, especially when you set clear goals and spending limits. So in this article, we’ll take a look at some ideas on how to make a budget that works for you.
<h2>Why do budgets matter?</h2>
While they’re not exactly fun or exciting, budgets can give you a clear overview of how much money you’re bringing in and how much you’re spending. Without one, it’s all too easy for your purchases to get out of control. Debts and bills can pile up alongside impulse buys and can quickly drain your bank account.
In contrast, a good budget gives you a roadmap for the future. It shows you how much you need to set aside to keep your budget balanced – or better yet, to boost your savings – and how much you may need to limit your spending.
That’s why we’re going to break down how you might go about making a budget. After all, a quick guide can always make the process a little easier.
<h2>How do you make a budget?</h2>
<h3>Step 1: Get your paperwork together</h3>
As the old quote goes, ‘preparation is the key to success’. There’s no point starting your budget if you’re going to have to get up every few minutes to fetch old receipts and information, so it’s better to have all of these ready from the beginning.
Of course, you don’t necessarily need everything, but it should be enough to give you a good idea of your income and expenses. For income, this may include:
<ul>
<li>Financial statements</li>
<li>Payslips from your work</li>
<li>Bank statements</li>
<li>Records of government payments (e.g. JobSeeker, Mobility or Carerr Allowance)</li>
</ul>
And for your expenses, this could include:
<ul>
<li>Utility bills</li>
<li>Credit card bills</li>
<li>Mortgage repayments</li>
<li>Other debts (e.g. personal loans)</li>
<li>Receipts for regular purchases (e.g. grocery bills)</li>
</ul>
Depending on the frequency of your budget, you’ll want to work out a weekly or monthly average for such costs and earnings. Since things like interest rates and the cost of utilities can fluctuate, you’ll also want to get bills and statements that go back a few months or even years. That way, it’ll be easier to work out the average – as well as whether certain costs might be rising.
<h3>Step 2: Make it work for you</h3>
The government website Moneysmart recommends setting up a budget to match how often you get paid<a href="#1">1</a>. So if you get paid on a weekly basis, you should set up a weekly budget. That way, it’ll be easier to plan around your lifestyle.
You may want to start by making sure the budget suits your planning style. If you prefer an old-school, tactile approach, then a pen and paper should be all you require. However, if you know your way around Google Sheets or Microsoft Excel, then making a digital budget could save you quite a bit of time.
Your schedule should come into it as well. If you can only spare 5 minutes, well, a simple list of earnings and expenses isn’t ideal, but it might be better than nothing. Otherwise, it’s best to set aside a bit more time each week (or month) to get the budget done.
Finally, if you’re planning a <a href="/blog/planning-a-family-budget">family budget</a>, then you’ll want to make something that’s easy to read for both you and your partner, and takes the spending of your entire household into account
<h3>Step 3: Set some goals</h3>
Setting financial goals can definitely motivate you when trying to stick to a budget. It can give you something to look forward to and strive towards when saving.
So what kind of goals are good to set? Well, research by the famous psychologists Edwin A. Locke and Gary P. Latham suggests that setting specific, challenging goals instead of vague, low-effort goals can lead to better performance and a higher chance of achieving them<a href="#2">2</a>.
Today, much of the research surrounding motivation and goal-setting has been appropriated by schools and workplace environments. Among other organisations, Healthdirect Australia<a href="#3">3</a> and Latrobe University<a href="#4">4</a> both tout the importance of &#8216;SMART goals&#8217;. These means goals that are:
<ul>
<li>specific,</li>
<li>measurable,</li>
<li>achievable,</li>
<li>relevant, and</li>
<li>time-specific goals.</li>
<li>For instance, you wouldn’t simply set a goal to ‘save more money’ – it’s a good start, but it’s much too vague. Something like ‘save $5000 in six months for an extra mortgage repayment’ works better as a long-term SMART goal: it’s specific, measurable and has a deadline attached.</li>
</ul>
<h3>Step 4: Calculate your income</h3>
Now you can get started on the budget itself. Remember, this is a budget for the upcoming week or month – a plan of attack for the future.
The first category for your budget will be your income: how much money you’re bringing in. This can include things like:
<ul>
<li>Income from work</li>
<li>Pensions</li>
<li>Government benefits</li>
<li>Gifts from friends and family</li>
<li>Interest on a savings account</li>
</ul>
Now, this will be easy enough to estimate if you receive a fixed income every fortnight or so, but it might be a little trickier if what you earn tends to vary
If you do not have a fixed income, you may be able to average out your monthly income over the last three months to determine what your budget could look like in the future.
<h3>Step 5: Add up expenses</h3>
Next, you’ll want to tally up how much money you’re spending. You can divide these expenses into two different categories:
Fixed expenses stay more-or-less the same every month. They’re predictable, and when they do see a rise, you’ll usually be informed in advance. This may include:
<ul>
<li>Rent or mortgage payments</li>
<li>Electricity, water, gas and utilities</li>
<li>Council fees</li>
<li>Debt repayments</li>
<li>Insurance premiums</li>
<li>Childcare and school fees</li>
<li>Phone and internet plans</li>
<li>Subscription services (e.g. Netflix, Spotify, etc.)</li>
</ul>
Variable expenses, on the other hand, are more prone to sudden decreases and increases. Among these, you can count:
<ul>
<li>Groceries</li>
<li>Medical costs</li>
<li>Renovations and home maintenance</li>
<li>Dining out</li>
<li>Clothing and cosmetics</li>
<li>Gifts to friends and family</li>
<li>Holidays</li>
<li>Entertainment costs, such as tickets for museums, movies or the theatre</li>
<li>Transport costs, such as money for gas, car repairs, taxis and tickets for public transport</li>
</ul>
You could start with an estimate that’s based on how much you’ve spent over the last few weeks or months
You might also want to break down the expenses into the sub-categories mentioned above, such as groceries or entertainment. Not only will this give you an idea of where your money is going, it will also help you tailor your budgets and adjust your spending – which we’ll talk about a few steps down.
<img decoding="async" loading="lazy" class="alignnone wp-image-3853" src="https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/How-To-Budget-2.jpg" alt="How to budget" width="700" height="431" />
<h3>Step 6: Work out your balance</h3>
Is your income higher than your expenses? If it is, then that’s certainly cause for celebration! It means that you’re bringing in more than you’re spending, and can set this money aside for emergency funds, extra purchases or saving.
However, if your expenses are higher than your income, then this could be cause for concern. To cover your expenses, you might be dipping into your savings or sinking into debt. Depending on your circumstances, you might want to address this as soon as possible.
Fortunately, your budget might be able to help here too.
<h3>Step 7: Reign in that spending</h3>
Ideally, you should set a spending limit for your ‘wants’. These can usually be found in your variable expenses; they’re the things that spice up your day and make life more fun, but you could go without if need be.
This could include the money spent on social events, holidays, the latest clothing and technology, or even that extra $5 you spend on an orange mocha Frappuccino every Friday.
How much you want to limit your spending here is ultimately your choice. But one way you can do so is by using the <a href="https://www.investopedia.com/ask/answers/022916/what-502030-budget-rule.asp">50-30-20 rule</a><a href="#5">5</a>
Popularised by US senator Elizabeth Warren in her book, All Your Worth: The Ultimate Lifetime Money Plan, this rule has a simple premise: save 50% of your income for essentials like rent and groceries, 30% for your wants, and 20% for savings or investments.
How you’ll save the 20% is up to you. Depending on your circumstances, you might want to set aside this money as an emergency fund or deposit it into a savings account. Some people even invest a portion of their savings into real estate or the stock market – but if this is something you haven’t done before then it’s usually best to do your research first and seek guidance from a qualified financial advisor.
<h3>Step 8: Adjust your expenses</h3>
Now you’ll want to revisit your expenses. Again, if your projected expenses exceed your income, or if they’re making it hard to hit your financial goals, this might be a problem.
However, if you want to reduce your spending, one option might be to look through your list of variable expenses and check what you can cut back on. For instance, let’s say you spent $200 last month on dining out and social events last month. If you make more meals at home or go out a little less, you might be able to reduce this amount to $100.
You’d then write this new amount into the expenses column. This will serve as your spending limit for these expenses in the coming week or month.
<h3>Step 9: Revise, review, retool</h3>
Now comes the moment of truth: you actually have to try and follow your budget for the days and weeks to come!
What happens next will show you whether the budget was realistic or not. You might follow it better than you expected or you might go over what you planned to spend; in either case, you can adjust your next budget accordingly.
If you’re saving more than you expected then maybe you’ll want to set your goals a little higher. Or maybe you’ve cut back on social events but now it’s giving you cabin fever; it might be possible to chip away at another expense so you can free up money to go out again.
The important thing is that the budget makes it easier to manage your finances, so feel free to change it as needed.
<h2>How else can I track my spending?</h2>
One great way to keep track of your budget is with a tracking tool like the <a href="https://moneysmart.gov.au/budgeting/budget-planner">Moneysmart budget planner</a> or one of many available personal spend-tracking apps available for mobile phones.
Not only can these tools provide a great visual example of what a budget should like, but they’re an easy way to keep a record of your spending and keep yourself accountable. For instance, they can give you a clear overview of where you tend to spend the most money as well as the potential savings you may have made over a period of time.
Start by saving all your receipts and adding them to your tracker at the end of each week. Don’t worry too much about how much you’ve spent at this stage, just focus on getting into the habit of record-keeping.
As you become more consistent, you’ll see some patterns emerge. You might also like to check in every three months to compare those patterns at a macro-level.
Some months may show more spending than others, but before you roll your eyes in disappointment at yourself, look a little closer. You’ll probably find the cause is more likely to be your quarterly energy bill or annual car insurance premium than a pair of Yeezy’s burning a hole in your pocket.
<h2>What are some other ways I might be able to cut down my expenses?</h2>
Moneysmart has some <a href="https://moneysmart.gov.au/budgeting/track-your-spending">excellent tips</a> on their website when it comes to tracking your spending and expenses.
However, if cutting down on your variable expenses still hasn’t balanced your budget, then it may be worth looking into your fixed expenses. Among other things, shopping around for utility providers or products like car or health insurance might help you find more competitive prices for these necessities.
For this reason, iSelect* offers a range of comparison services for many different providers and plans. Among other things, we cover Home Loans, Gas &amp; Electricity, Health Insurance, Home &amp; Contents Insurance and different internet plans. So if you’re interested, why not <a href="https://www.iselect.com.au/">start comparing</a> with us today?
&nbsp;
<hr />
1 Source:<a href="https://moneysmart.gov.au/budgeting/how-to-do-a-budget"> https://moneysmart.gov.au/budgeting/how-to-do-a-budget 
</a>
2 Source: Locke, E. A., &amp; Latham, G. P. (2002).<a href="https://www.researchgate.net/publication/254734316_Building_a_Practically_Useful_Theory_of_Goal_Setting_and_Task_Motivation_A_35Year_Odyssey"> Building a practically useful theory of goal setting and task motivation: A 35-year odyssey. 
</a>American Psychologist, 57(9), 706.
3 Source:<a href="https://www.healthdirect.gov.au/goal-setting"> Goal setting | healthdirect 
</a>
4 Source:<a href="https://www.latrobe.edu.au/mylatrobe/how-to-set-s-m-a-r-t-goals-and-get-those-tasks-done/"> How to set S.M.A.R.T. goals and get those tasks done! &#8211; MyLaTrobe 
</a>
5 Source: <a href="https://www.investopedia.com/ask/answers/022916/what-502030-budget-rule.asp">https://www.investopedia.com/ask/answers/022916/what-502030-budget-rule.asp 
</a>

How to Budget In 9 Easy Steps

Some of us have a little and some of us have a lot. There’s no clear answer to how much money you should have in savings, because it all depends on a few different factors like your age, income, existing debts, and long-term goals.
<h2>What are the average Australian household spending habits?</h2>
Data from the Australian Bureau of Statistics shows that from March to June 2020, the average Australian household saving to income ratio increased to 19.8%, up from 6% in the December 2019 to March 2020 quarter. <a href="#1">1</a> If this rapid increase shows anything, it’s that the pandemic and ongoing lockdowns significantly impacted both our ability and desire to spend money.
The ABS findings further showed that the household saving to income ratio rose to the highest level since 1974, because of the drastic drop in consumption rates as a result of the COVID-19 pandemic<a href="#2">2</a>.
But it’s likely Australians’ spending habits are once again climbing up as we slowly move into a COVID-normal. So to fight off the impulse to start spending big, think about the 50-30-20 rule before your next purchase.
<h2>Saving with the 50-30-20 rule</h2>
Considering the 50-30-20 rule<a href="#3">3</a> could be a useful tool when you start thinking about budgeting and how much money you could have in your savings account.
As we explored in our article on <a href="/blog/how-to-budget">budgeting</a>, the rule provides a framework for how to more effectively distribute our spending. So, 50% is for necessities, 30% is for wants, and 20% is for adding to your savings and investments.
Start by checking your bank statements and account balances and study your spending for the past three months. Label each deduction from your account as either a necessity, want, or investment. Since you’ll have a good overview of your spending habits over the past three months, you can also use this data to predict your spending over the coming three months, and possibly reprioritise if need be.
<h2>How much money can Australians realistically save?</h2>
Findings published in the July 2020 ME Household Financial Comfort Report showed that out of the surveyed 1,500 Australian households, 21% of them had savings of less than $1,000<a href="#4">4</a>. A further 14% of those households had savings between $1,001 to $5,000 while a similar amount of households had between $5,001 to $10,000. Over 30% of households have over $50,000 in savings<a href="#5">5</a>.
<img decoding="async" loading="lazy" class="alignnone wp-image-3769 size-large" src="https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/How-much-in-cash-savings-does-your-household-currently-hold.-e1663290958543-1024x484.png" alt="How much in cash savings does your household currently hold?" width="750" height="354" srcset="https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/How-much-in-cash-savings-does-your-household-currently-hold.-e1663290958543-1024x484.png 1024w, https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/How-much-in-cash-savings-does-your-household-currently-hold.-e1663290958543-300x142.png 300w, https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/How-much-in-cash-savings-does-your-household-currently-hold.-e1663290958543-768x363.png 768w, https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/How-much-in-cash-savings-does-your-household-currently-hold.-e1663290958543.png 1179w" sizes="(max-width: 750px) 100vw, 750px" />
How much in case savings does your household currently hold &#8211; including savings accounts, term deposits and offset accounts? 
Source: <a href="https://www.mebank.com.au/getmedia/c27b0a0d-cc4e-470e-8a37-722d6f00af98/Household_Financial_Comfort_Report_July_2020_FINAL.pdf">ME Bank Household financial comfort report 2020</a> (page 29).
As you can see from the ME survey, the results are quite varied, with a tendency for Australian households to have either a little or a lot in savings.
The Reserve Bank of Australia has reported extensively on trends in household spending, and their findings show that on average, household saving ratios tend to increase with income, while saving is found to decrease with wealth and gearing.’<a href="#6">6</a>
In addition to those findings, ‘financially constrained households and households deemed to be at risk of a future income shock tend to save more than other households.’<a href="#7">7</a>
So while it isn’t realistic for everyone to put money away for a rainy day, if you are able to do so, a good general guideline could be to gradually set aside money into your savings account, bit by bit.
<h2>What are some strategies Australians use to build their savings?</h2>
There’s no one-size-fits-all approach when it comes to building up your savings, as what works for one person might not work for another. That being said, most households do share some common expenses, and in some cases it may be possible to decrease their cost.
One such expense is debt – which can include what you owe on a home loan, credit card or personal loan. Since a portion of your income always needs to pay off these debts, the more debt you have the less you’ll generally be able to save.
In contrast, households can free up their ability to save by reducing their debts. For instance, they may be able to refinance their home loan to one that offers a lower interest rate and reduced monthly repayments.
Some lenders also offer personal loans which people can use to consolidate their credit cards and other debts. As with the previous example, this may allow them to pay off these debts at a lower interest rate.
Of course, finding a suitable product for debt consolidation or refinancing requires careful research. And this often involves comparing different options between lenders.
Fortunately, iSelect can help here. With us, you can compare <a href="https://www.iselect.com.au/home-loans/">home loans</a>, <a href="https://www.iselect.com.au/personal-loans">personal loans</a> and <a href="https://www.iselect.com.au/credit-cards">credit cards </a>from a range of lenders, making the whole process a lot easier.
<h2>What other expenses can impact your savings?</h2>
Household bills and financial products (such as insurance) can also affect how much people are able to save – especially if they are paying more than what’s necessary. For this reason, you may want to review the following expenses:
Car insurance
If you hold car insurance, then you might want to check if you’re eligible for any discounts with your provider. For example, you may be eligible for a “no claims” bonus if you haven’t lodged an insurance claim for a certain period.
Furthermore, by comparing car insurance products you may be able to find one at a lower premium than you already pay. And with iSelect, you can <a href="https://www.iselect.com.au/car-insurance/">compare policies</a> with some of Australia’s leading car insurers online.
If you hold car insurance, then you might want to check if you’re eligible for any discounts with your provider. For example, you may be eligible for a “no claims” bonus if you haven’t lodged an insurance claim for a certain period.
Health insurance 
According to the Australian Government Department of Health, about 13.6 million Australians hold private health insurance<a href="#8">8</a>. However, they also note that ‘many people don’t fully understand what they are getting for their money and what they are covered for’.
Therefore, it may be worthwhile to review your health insurance policy. Keeping abreast of the extras attached to your cover, as well as your excess (which is your out-of-pocket payment required when you make a claim), can help you understand if your policy suits your needs.
Your insurer may also allow you to increase your excess and/or reduce your extras limits, which could possibly lower the premium you pay. Alternatively, if you’re looking to find a better value policy, you can <a href="https://www.iselect.com.au/health-insurance/">compare</a> a range of health insurance options with iSelect.
Life insurance 
Life insurance and related forms of cover, like income protection, total permanent and disability (TPD) insurance and trauma (or ‘critical illness’) insurance, can pose a significant expense for many Australians.
But as with other insurance products, there’s a range of different providers offering different cover options. While so many options can be overwhelming, with our partner Lifebroker, you can <a href="https://www.iselect.com.au/life/">compare policies</a> from several leading life insurers within Australia.
Pet insurance 
A 2021 report from Animal Medicines Australia notes that only 24% of dog owners and 19% of cat owners pay for pet insurance<a href="#9">9</a>. It’s also estimated that the average pet-owning household spends $245 a year on insurance for dogs and $116 on insurance for cats – although this estimate includes households who don’t hold any cover<a href="#10">10</a>.
As such, you might wish to compare different pet insurance policies to find more cost-efficient cover. And at iSelect, we’ve partnered with Choosi to help you <a href="https://www.iselect.com.au/pet-insurance/">compare products</a> from a range of providers.
Home &amp; Contents Insurance 
For many households, home &amp; contents insurance represents a safety net of sorts. It provides cover that could possibly compensate if your home is damaged, or if any furniture, jewellery or household items are lost or stolen.
Obviously, such cover does not come free of charge. But iSelect also offers an online tool that you can use to <a href="https://www.iselect.com.au/home-and-contents/">compare these policies</a> from a range of providers.
Electricity &amp; Gas 
Utility bills can often put a strain on household finances – and over the last few months that strain has only gotten more pronounced.
According to the Australian Energy Regulator, the wholesale cost of gas and electricity has increased sharply over the first quarter of 2022<a href="#11">11</a>. And this will likely translate to higher prices for ordinary Australians.
Because of this, it may be worth comparing the conditions and prices of different energy plans. Again, iSelect can help with this: and you can <a href="https://www.iselect.com.au/energy/">compare plans</a> with us from a range of energy providers online.
Internet expenses
Many Australians rely on stable internet access for work and recreation, but as with mobile phones, the cost of a regular internet plan can quickly accumulate.
However, choosing a suitable plan may help to keep costs at a reasonable level. For instance, someone who never exceeds their monthly data allowance could save by opting for a cheaper plan with a lower data allowance whereas if you are regularly running out of data, you might be better off going with an unlimited data plan
If you’re interested in comparing different internet plans, iSelect can help as well. With our online tool, you can <a href="https://www.iselect.com.au/internet/">compare plans</a> from a range of different providers today.*
Of course, with the above examples just keep in mind that a cheaper plan or product isn’t necessarily better. And what’s most suitable for you will ultimately depend on your particular needs and circumstances. 
<h2>How else can you boost your savings?</h2>
Ultimately, everyone’s needs are different, so it’s up to you to figure out how much money in your savings account would give you breathing space and peace of mind.
And even if you can’t set much money aside, it might help if you shift your perspective and think of every little contribution as a safeguard to protect you against emergencies or unexpected surprises.
To help get your savings started see how much you could save by comparing a range of insurance and utilities products online with iSelect*.
&nbsp;
<hr />
1 Source:<a href="https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/jun-2020"> https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/jun-2020 
</a>
2 Source:<a href="#1"> as above 
</a>
3 Source:<a href="https://www.investopedia.com/ask/answers/022916/what-502030-budget-rule.asp"> https://www.investopedia.com/ask/answers/022916/what-502030-budget-rule.asp 
</a>
4 Source:<a href="https://www.mebank.com.au/getmedia/c27b0a0d-cc4e-470e-8a37-722d6f00af98/Household_Financial_Comfort_Report_July_2020_FINAL.pdf"> https://www.mebank.com.au/getmedia/c27b0a0d-cc4e-470e-8a37-722d6f00af98/Household_Financial_Comfort_Report_July_2020_FINAL.pdf 
</a>
5 Source:<a href="#4"> as above (page 29) 
</a>
6 Source:<a href="https://www.rba.gov.au/publications/bulletin/2014/jun/pdf/bu-0614-1.pdf">https://www.rba.gov.au/publications/bulletin/2014/jun/pdf/bu-0614-1.pdf (page 7) 
</a>
7 Source:<a href="#6"> as above (page 7) 
</a>
8 Source:<a href="https://www.health.gov.au/health-topics/private-health-insurance/private-health-insurance-reforms"> https://www.health.gov.au/health-topics/private-health-insurance/private-health-insurance-reforms 
</a>
9 Source:<a href="https://animalmedicinesaustralia.org.au/wp-content/uploads/2021/08/AMAU005-PATP-Report21_v1.4_WEB.pdf"> https://animalmedicinesaustralia.org.au/wp-content/uploads/2021/08/AMAU005-PATP-Report21_v1.4_WEB.pdf (page 24) 
</a>
10 Source:<a href="#9"> as above (page 24) 
</a>
11 Source:<a href="https://www.aer.gov.au/wholesale-markets/wholesale-statistics"> Wholesale statistics | Australian Energy Regulator (aer.gov.au) 
</a>

How Much Money Should I Have In Savings?

Getting your home ready for sale can definitely be an exciting time. Although you’ve made some great memories inside your old house, now you’re eager to move on to bigger and better things. You’re motivated. You’re brimming with energy. And then reality sinks in – preparing everything is a lot of work.
Well, the good news is that iSelect is here to help take the stress off. We’ve compiled some tips below to help the whole house preparation process go a little more smoothly.
<h3>What do I need to know?</h3>
<ul>
<li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Formulate a realistic expectation of what your home is likely to sell for by comparing recent sales prices for similar properties.  Your real estate agent should also be able to share recent comparable sales with you  </li>
<li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Give your house a pre-sale spruce up to make sure it is looking its best.  Touch up any minor defects, give it a really thorough clean and freshen up the garden to increase its appeal to buyers  </li>
<li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Carefully consider any pre-sale renovations, as you don’t want to spend money on things that ultimately won’t add value to prospective buyers </li>
<li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Selling a home involves a lot of legal paperwork. It can be worthwhile engaging a solicitor or conveyancer to take care of the conveyancing process for you  </li>
</ul>
<h2>Get everyone on the same page</h2>
If you’ve decided to go with a <a href="/blog/finding-a-real-estate-agent">real estate agent</a>, then it’s a good idea to make sure they know what how much you’re hoping to sell your home for. As noted by Consumer Affairs Victoria, you’ll want to reach an agreement about how much your house should be advertised for and the offers you’re willing to consider<a href="#1">1</a>.
Research can also be your friend here. You can look at similar properties in your area and investigate how much they’ve sold for online. You can also ask your real estate agent for sales records of other similar homes in your area for comparison.
<h2>Give your house a personal inspection</h2>
Putting your house up for sale means that lots of prospective buyers will want to see it first-hand before making a commitment. Not only is it important that everything looks spick and span, but having everything in working order may also help the sale.
Legally, you can’t mislead buyers about your house’s true condition. So it may be worthwhile to give your house a quick review for any defects. Are there any holes in the walls they need patching up, stubborn stains on the carpet or prominent dents in the fixtures?
It’s ultimately up to you which defects you choose to fix and which might be less important. Just keep things in mind from a buyer’s point-of-view. Ask yourself whether you’d buy the house – warts and all – or if it’d need a little fixing up before you fully commit.
Most buyers will organise a professional building inspection before signing any contracts. So, any faults that you might try to conceal will likely be identified by the inspector.
<h2>To renovate or not to renovate</h2>
Some people choose to spend big on renovations before putting their house on their market. The logic goes that any costs are offset by an improvement in the sales price, though this isn’t guaranteed.
In an interview with the Royal Automobile Club of Victoria (RACV), Lachlan Bishop – a sales executive at the real estate agency Compton Green – suggested you don’t want to spend too much on big improvements that buyers don’t want<a href="#2">2</a>.
Among other things, Bishop states that new cabinets and storage room may be especially appealing to buyers, as well as a fancy new garden<a href="#2">2</a>.
Still, what attracts one buyer will not necessarily attract another. Some prefer blackbutt flooring while others want shag carpeting. The only certainty is that you should give the decision to renovate careful consideration. There’s no shame if you decide it’s not for you.
<h2>Beautify the outside</h2>
A jungle of weeds in your front yard looks grotty on a normal day, but when you’re selling your house it might as well be buyer repellent. Whether you’re advertising your property or holding an open house, you want to make a good first impression, so a nice-looking exterior is key.
Look at the photos on any property listing and you’ll quickly notice a pattern: the lawns are mowed, the trees and shrubbery well-manicured and very little is obscuring your view of the house. You might also want to place some alluring plants in the garden or apply a fresh coat of paint to the walls – though this all depends on what you think looks best and what makes sense for your property.
<img decoding="async" loading="lazy" class="alignnone wp-image-3803" src="https://blogwp-stg.iselect.com.au/wp_uploads/2022/09/Tips-for-moving-house-2.jpg" alt="Family packing up their house" width="750" height="462" />
<h2>Tidy up the inside</h2>
Cobwebs and dirty piles of clothes are an obvious no-no if you’re having buyers over to inspect the house, so it might help to do a thorough clean beforehand. Opening the windows and airing out the house can also ensure everything smells fresh by the time anyone arrives is also good practice, as is clearing out any clutter.
You’ll also need to decide on the ‘vibe’ you want to set for the house. For instance, some throw pillows and flower vases might give it a cosy, lived-in look while clear counters and blank walls, free of posters and other decorations, may strike buyers as spacious and uncluttered.
And don’t forget your valuables either! Consumer Affairs Victoria also advises keeping precious or personal items out of view when holding an open house<a href="#3">3</a>. If you have jewellery or other expensive belongings it might be wise to lock them up somewhere secure – just to be on the safe side.
<h2>Make yourself scarce</h2>
Generally speaking, you don’t want to be skulking around if you decide to hold an open inspection. Your agent will likely tell you to have some time to yourself while they show prospective buyers around, but you can also speak to them if you have any concerns.
Remember that buyers are also looking for a home that can be theirs, so leaving photos of your family scattered around might break the fantasy for them. As mentioned before, picture yourself in the buyer’s shoes, and think about whether you’d want to buy a house that still looks like it belongs to the owner.
<h2>Take care with conveyancing</h2>
When selling your home, you’ll inevitably have to go through a conveyancing process. This involves transferring the property from your name to the person buying it, and involves a fair amount of legal paperwork.
Again, it’s your decision whether you want a solicitor or conveyancer to take care of this for you, or whether you want to try your hand at it yourself. However, it’s worth listening to the advice of government agencies here. For instance, the New South Wales Fair Trading Commission<a href="#4">4</a> notes:
<blockquote>If you choose to do your own conveyancing, research what is required and the risks involved… You will still be personally liable if there is a problem with the sale even if you followed the instructions. It may also be difficult for you to purchase the same level of insurance available to a licensed conveyancer or solicitor.</blockquote>
The Tasmanian Government’s Consumer, Building and Occupational Services<a href="#5">5</a> website also calls the decision to do your own conveyancing “risky” and Consumer Affairs Victoria<a href="#6">6</a> recommends using a conveyancer or solicitor if you’re not confident in your own ability. 
However, if you do decide to conduct the conveyancing yourself, you may want to check in with the government authority in your state or territory . just to be sure of any legal requirements.
<h2>Looking to buy a new home?</h2>
Hopefully, you’ll end up getting an offer on your old house that lets you move into your dream home. However, if you think that you’ll need some extra funds to make the move, we might be able to help.
At iSelect we’ve partnered with Lendi to make it easier to find a great deal on home loans*. So if you’re looking for a home loan, <a href="https://www.iselect.com.au/home-loans/">click here</a> to start comparing from a range of lenders online, or give Lendi a call on 1300 186 260.
&nbsp;
<hr />
1 Source: <a href="https://www.consumer.vic.gov.au/housing/buying-and-selling-property/checklists/selling-property">Selling property &#8211; checklist &#8211; Consumer Affairs Victoria 
</a>
2 Source: <a href="https://www.racv.com.au/royalauto/property/renovating/home-improvements-worth-investment.html">Home improvements that are worth the money | RACV 
</a>
3 Source: <a href="https://www.consumer.vic.gov.au/housing/buying-and-selling-property/selling-property/preparing-to-sell-your-property">Preparing to sell your property &#8211; Consumer Affairs Victoria 
</a>
4 Source: <a href="https://www.fairtrading.nsw.gov.au/housing-and-property/buying-and-selling-property/buying-a-property/conveyancing">https://www.fairtrading.nsw.gov.au/housing-and-property/buying-and-selling-property/buying-a-property/conveyancing 
</a>
5 Source: <a href="https://cbos.tas.gov.au/topics/housing/buying-selling-property/advice-buying-selling-property">https://cbos.tas.gov.au/topics/housing/buying-selling-property/advice-buying-selling-property 
</a>
6 Source: <a href="https://www.consumer.vic.gov.au/housing/buying-and-selling-property/selling-property/conveyancing-and-contracts-for-sellers">Conveyancing and contracts for sellers &#8211; Consumer Affairs Victoria 
</a>

How to Prepare Your Property For Sale Minus the Stress

After making that big decision to put their house or investment property on the market, many people engage a real estate agent to help them make the sale. But how exactly are you meant to choose between so many different real estate agents pushing their services?
It’s not always clear what you need to look for when picking out a suitable representative. However, we’re hoping to help make it a little easier to understand with some handy tips.
<h3>What do I need to know?</h3>
<ul>
<li>A real estate agent helps you sell your property, including advertising, organising open homes, negotiating with potential buyers and running an auction</li>
<li> It can be a good idea to speak with a few different agencies before choosing your preferred agent and always make sure they have a valid licence. Also read any contracts carefully before signing (and consider seeking professional advice) </li>
<li> A real estate agent generally doesn’t take care of the legal process of transferring the property from you to the buyer after the sale.  This is normally done by a solicitor or conveyancer </li>
<li> It’s important to properly understand the fees or commission the agent will charge you, including whether there are additional fees for marketing and advertising </li>
</ul>
<h2>What to expect from an agent</h2>
A real estate agent is basically someone who helps you sell your property.
They act on your behalf throughout the process and execute a variety of tasks. Among other things, they might help:
<ul>
<li>Advise on a method of sale (e.g. private sale, auction)</li>
<li>Advertise the property</li>
<li>Place the property on listing websites</li>
<li>Run a marketing campaign</li>
<li>Organise private and open house inspections</li>
<li>Find and negotiate with potential buyers</li>
<li>Set up an auction</li>
<li>Obtain and hold the buyer’s deposit</li>
</ul>
By conducting these tasks, the real estate agent might be able to save you a lot of time and energy. Should you choose to go without an agent, much of this work will fall to you.
Keep in mind that real estate agents aren’t typically responsible for transferring the property from your name to the buyer&#8217;s after the sale. This is a legal process which may require the services of a solicitor or conveyancer.
<h2>Make sure they’re licensed</h2>
As noted in our article on <a href="/blog/finding-a-real-estate-agent">Finding a Real Estate Agent</a>, it’s absolutely essential that your real estate agent holds a valid licence. This should ensure that the agent has the appropriate training and qualifications to help out with the sale and has not been disqualified due to misconduct.
When dealing with an agent, the Australian Competition &amp; Consumer Commission (ACCC) recommends checking with your local state or territory consumer protection agency to make sure they’re registered<a href="#1">1</a>.
You can do this by searching for the agent’s name or licence number on one of the relevant websites below:
<ul>
<li>Victoria: <a href="https://www.consumer.vic.gov.au/licensing-and-registration/estate-agents/public-register">Consumer Affairs Victoria – Public Register</a></li>
<li>New South Wales: <a href="https://www.service.nsw.gov.au/transaction/check-property-licence-or-certificate">Service NSW – Check a property licence or certificate</a></li>
<li>Queensland: <a href="https://www.qld.gov.au/law/laws-regulated-industries-and-accountability/queensland-laws-and-regulations/check-a-licence-association-charity-or-register/check-a-licence">Queensland Government – Check a License</a></li>
<li>Northern Territory: <a href="https://licensingnt.nt.gov.au/PublicRegister/">Northern Territory Government – Public Register</a> </li>
<li>South Australia: <a href="https://www.sa.gov.au/topics/business-and-trade/licensing/licence-check">Government of South Australia – Check Occupational Licence Holders</a></li>
<li>Western Australia: <a href="https://www.commerce.wa.gov.au/consumer-protection/consumer-protection-licence-and-registration-search">Government of Western Australia – Consumer Protection Licence and Registration Search </a></li>
<li>Tasmania: <a href="http://www.propertyagentsboard.com.au/register-of-property-agents.html">Property Agents Board of Tasmania</a> </li>
<li>ACT: <a href="https://www.accesscanberra.act.gov.au/s/occupational-licences">ACT Government – Occupational Licences</a></li>
</ul>
<h2>Start comparing</h2>
Both Consumer Affairs Victoria<a href="#2">2</a> and the Queensland Government’s Office of Fair Trading<a href="#3">3</a> recommend speaking to several agents before you make a final decision on which one to go with.
Taking the time to speak with a number of agents means you can compare and contrast the prices and services that different agencies offer and settle on the one that’s most suitable.
Consumer Affairs Victoria also advises against choosing a real estate agent just because they give you an estimate of a higher selling price on your house<a href="#2">2</a>. It may be worth considering other factors – such as their sales record in your area or their fees – when making your decision.
You may also wish to use a comparison service such as <a href="https://www.agentselect.com.au/" target="_blank" rel="noopener">Agent Select</a> when it comes to finding real estate agents. However, just be aware that such services may not include every agency in their results. So searching the old-fashioned way, through local papers and the internet, may also prove worthwhile. And word of mouth can be powerful – recommendations from friends and family can be a great place to start.
<h2>Question time</h2>
Once you’ve set up some meetings with real estate agents, it’s time to get some questions ready. This may help you get a sense of what they know about the local property market and their strategy for selling your house.
Here are just some examples of the questions you might wish to ask:
<ul>
<li>What is the property market like right now?</li>
<li>How would you sell a property like mine?</li>
<li>Have you ever sold other properties in this area?</li>
<li>What kind of fees do you charge?</li>
<li>What percentage of commission will you take from the sale?</li>
<li>What are some other costs I’ll need to consider?</li>
</ul>
Consumer Affairs Victoria also suggests getting several agents to appraise your property and provide an estimated selling price. They also state that you’ll want them to justify their price by showing you comparable sales in your area<a href="#2">2</a>.
<h2>Consider commission</h2>
Real estate agents and agencies may differ in the kinds of fees they charge. Some offer ‘no sale, no fee’ guarantees while others might charge you for advertising costs even if the property doesn’t sell.
It’s important to make sure you understand an agent’s fees before signing on with them. Typically, such fees will fall into two categories:
<ul>
<li>Flat fee: A fixed amount that you’ll pay to your agent. This doesn’t change if your house ends up selling for a higher or lower amount than you expected<a href="#2">2</a>.</li>
<li>Percentage of sale fee: The agent gets a percentage of your property’s final sale price<a href="#2">2</a>. For example, if you and your agent agree to a 3% percentage of sales fee, and your house sells for $500,000, they will get $15,000 in commission.</li>
</ul>
<table style="width: 100%; border-collapse: collapse; border-style: solid;">
<tbody>
<tr>
<td style="width: 100%;">Important 
Some agents might charge both a flat fee and a percentage of sale fee for their services<a href="#2">2</a>.</td>
</tr>
</tbody>
</table>
&nbsp;
Remember, this is just the commission the agent receives. You might also be required to cover the costs of marketing and advertising, so make sure you speak to your agent and read the sales authority carefully before agreeing to anything.
<h2>Possible red flags</h2>
Since selling your house is a major commitment, it’s only natural that you’d want to proceed with care. This doesn’t mean you should be paranoid – just vigilant.
When dealing with agents, keeping an eye out for unscrupulous or illegal behaviour is never unwise. Such behaviour may include:
<ul>
<li>Overestimating: According to the ACCC, it is illegal for a real estate agent to mislead you or give you a false impression<a href="#1">1</a>. This may include giving you an estimated selling price that’s excessively high in order to attract your business.</li>
<li>Underquoting: Alternatively, some agents will advertise a house at a much lower price than the seller is willing to accept. But doing so intentionally to attract more buyers may also be regarded as misleading conduct. For instance, Consumer Affairs Victoria issued more than $300,000 in fines against agents who breached the state’s underquoting laws in May-November 2021 alone<a href="#4">4</a>.</li>
<li>Leaving out information: The ACCC also makes it clear that real estate agents should not omit or hide any important information<a href="#1">1</a>. To this effect, it’s a good idea to check the fine print of any contract or sales authority you’re asked to sign to make sure you’ve been made aware of the terms and conditions.</li>
</ul>
<h2>Moving forward</h2>
Once you’ve decided on an agent, the next step of the process is usually signing a sales authority. This is a legally binding contract which allows the real estate agent (or agency) to act on your behalf, so you’ll want to read it thoroughly before you sign it. In fact, the ACCC recommends seeking legal advice if you are ever unsure what a contract means<a href="#1">1</a>.
From there, you might also start <a href="https://www.iselect.com.au/blog/preparing-a-house-for-sale">preparing your house for sale</a> – so take a breather if you need it and get ready for the next, exciting stage of the process.
Or, if you’re looking to buy a new house while selling your old one, it might be time to turn your attention to the future. Are you looking at home loans to help make the big purchase? If so, we might be able to help.
At iSelect we’ve partnered with Lendi to make it easier to find a great deal on home loans*. So if you’re interested, <a href="https://www.iselect.com.au/home-loans/">click here</a> to start comparing from a range of lenders online, or give Lendi a call on 1300 186 260.
&nbsp;
<hr />
1 Source: <a href="https://www.accc.gov.au/consumers/health-home-travel/real-estate">Real estate | ACCC 
</a>
2 Source: <a href="https://www.consumer.vic.gov.au/housing/buying-and-selling-property/selling-property/selling-property-with-or-without-an-agent">Selling property with or without an agent &#8211; Consumer Affairs Victoria 
</a>
3 Source: <a href="https://www.qld.gov.au/law/housing-and-neighbours/buying-and-selling-a-property/selling-a-home/before-you-put-your-home-on-the-market/appointing-a-real-estate-agent">Appointing a real estate agent | Your rights, crime and the law | Queensland Government (www.qld.gov.au) 
</a>
4 Source: <a href="https://www.consumer.vic.gov.au/latest-news/enforcing-underquoting-laws-to-protect-home-buyers-news-alert">Enforcing underquoting laws to protect home buyers &#8211; News alert &#8211; Consumer Affairs Victoria 
</a>

How to Choose a Real Estate Agent

There are obviously some differences between moving into a rental versus your own home, and you’ll be well aware of the specifics regarding your own situation. But overall, the act of moving house is fairly universal.
You might feel reasonably organized, but amid the flurry of activity in the week or two leading up to the move, it’s easy to forget certain tasks until the last minute.  
<h3>What do I need to know?</h3>
<ul style="font-weight: 400;">
<li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Moving home can be really stressful.  Things to get sorted early on include booking a removalist, sorting out any unpaid bills and connecting utilities like electricity and internet at your new home </li>
<li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">When it comes to packing, do a thorough sort before you pack and get rid of anything you no longer need.  Carefully wrap any fragile items and make sure all boxes are clearly labelled with what they contain and what room they are for </li>
<li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="3" data-aria-level="1">Don’t forget to update your mailing address, particularly with your insurers as a new address can impact your car insurance or home and content premium </li>
<li data-leveltext="" data-font="Symbol" data-listid="5" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="4" data-aria-level="1">Come moving day, pack a bag of essentials with clothes, toiletries etc so you don’t have to sort through endless boxes.  Make sure you have toilet paper and plenty of snacks on hand too!  </li>
</ul>
If you’ve already read through our <a href="/blog/tips-for-moving-house">tips for moving house,</a> take a look through our all-important checklist of essentials below and save yourself the frantic running around like a chook with no head.
<h2>Before you move</h2>
<ul>
<li>
<h3>Get rid of what you don’t need</h3>
</li>
</ul>
This is made clear by both Moneysmart<a href="#1">1</a> and Australia Post<a href="#2">2</a>: it’s a good idea to get rid of unwanted items before you move. This will make packing a lot easier since you won’t have to sort through an ocean of junk. So, if you’ve got old receipts you’re willing to part with or clothes you’ve been meaning to donate, now might be the right time to get rid of them.
<ul>
<li>
<h3>Book removalists (if you need to!)</h3>
</li>
</ul>
This is something that might depend on how many things you own, particularly heavy furniture like a couch, fridge, or a taxidermied bear rug. It also depends on how many family members and friends you have close by who can help you out with packing, moving, and transporting your things on the day. 
If you do choose to hire a removalist then it never hurts to go for someone reliable. Consumer Affairs Victoria<a href="#3">3</a> suggests asking friends or family for their recommendations, seeking out trustworthy reviews of different services or using a service that’s accredited with an industry body (like the <a href="https://afra.com.au/">Australian Furniture Removalists Association</a>).
<ul>
<li>
<h3>Sort out any unpaid bills</h3>
</li>
</ul>
The government website Moneysmart also advises you to pay off any existing rent or utility bills before moving1. Failing to do so doesn’t just mean angry calls from your ex-landlord either – it could affect your credit score or rental history as well. 
If you share a house or unit with roommates you’ll also want to pay for any expenses you’ve agreed to share (such as groceries). For renters, it’s also prudent to speak to your landlord or give formal notice that you intend to move out.
<ul>
<li>
<h3>Arrange to disconnect and connect utilities</h3>
</li>
</ul>
If you lived with other people at your old residence and they’ll be staying there, you won’t need to worry about disconnecting services. But if you’re all moving out, you’ll need to get in touch with your service providers and arrange a disconnection date. For instance, the Australian Energy Regulator suggests that you give your energy provider at least three days’ notice before you move out<a href="#4">4</a>. 
It’s best to have some overlap between your old and new place, so once you have your move-in date, arrange to disconnect services at your old place on the last day of your residency there. Arrange to connect services at your new place at least a day before your move-in date, so that everything is ready to go by the time you move in. 
Internet connections may take a few business days to connect, and if you’re waiting for hardware to be delivered (such as a modem), then you might also be without internet for the first few days. You can always rely on your phone’s hotspot, but it’s easy to churn and burn through all your data and rack up extra costs. If you regularly work from home, prioritise internet connection as early as you can. 
To learn more, check out <a href="https://www.iselect.com.au/moving-house/">iSelect’s mover’s service</a>, which can help you connect gas, electricity and internet at your new home.
<h2>Pack well, pack right</h2>
Apart from making sure you’ve got enough cardboard boxes, there are a few more tools and essential items you’ll need to help you pack properly and get you through the move. The last thing you want is shattered photo frames, goo-ridden boxes from leaky cosmetics, or blood all over the carpet from an unstoppable papercut.
<ul>
<li>
<h3>Old newspapers and bubble wrap</h3>
</li>
</ul>
Wrap your fragile items in a couple of layers of newspaper or bubble wrap to protect them from cracks and breaks. Photo frames, ceramics, trinkets, glass bottles, and other delicate items you handle gingerly should all be wrapped up before they’re placed into a box. Keep these items together if you can as well, and label that box as ‘fragile’.
<ul>
<li>
<h3>Scissors and tape</h3>
</li>
</ul>
This one goes without saying, but without them, your packing process will take a real hit.
<ul>
<li>
<h3>Bolts, nails and screws</h3>
</li>
</ul>
If you need to dismantle furniture, make sure you put all the bolts and screws together in a resealable bag, and then label it. Put however many of these you end up having altogether in a box so you don’t lose any and you know where they all are.
<h2>Update your address</h2>
As the date of your big move draws closer, you’ll want to give your new mailing address to all the organizations who need your information. Yeah, it’s a bit of a pain – but it also ensures that all the important information these organizations send out arrives straight to your doorstep.
Some government services, such as Medicare, Centrelink and the Australian Tax Office – may also allow you to update your details via the <a href="https://my.gov.au/">MyGov website</a>. You’ll just need to select the state or territory where your new address is located and follow the prompts.
For other organizations and services, such as banks and universities, you may be able to change your details with them online. If not, calling them is usually your next best bet.
<h2>Notify your insurer</h2>
You’ll also want to let the provider who handles your car, life and health insurance know about the move. Our partners at Budget Direct recommend doing this about 4 weeks before you change addresses<a href="#5">5</a>; doing so may also help your insurer update your policy accordingly, as some premiums may change depending on your location.
Additionally, if you need home and contents insurance for your new address, you may wish to compare some policies. iSelect provides an online tool which you can use to <a href="https://www.iselect.com.au/home-and-contents/">compare policies</a> from a range of providers; so if you’re interested then feel free to get started with us today!
<h2>On the day</h2>
<ul>
<li>
<h3>Bring a bag of essentials</h3>
</li>
</ul>
It’s important to pack an overnight bag, just as if you were travelling. This means you’ll have easy access to your toiletries, clothes, and whatever else you need to get through a normal day.
<ul>
<li>
<h3>Take care of the pets and kids</h3>
</li>
</ul>
Make sure you’ve got a cage for the cat, a tank for the fish, a leash for the dog, and restraints for the kids… child-restraint seating in the car, that is&#8230;
<ul>
<li>
<h3>Stock up on the extras</h3>
</li>
</ul>
On the day before the move (or maybe in the early morning!), buy extra toilet paper and a first-aid kit if you don’t already have one. Grab yourself and anyone else you’re moving with some groceries too, because you’ll get hungry throughout the day. You won’t have time for a sit-down meal, so it might be helpful to have snacks like bananas or muesli bars on hand to get you through.
Keep in mind that iSelect* is here to <a href="https://www.iselect.com.au/moving-house/">make your move a little easier</a>, too. We can help you connect gas, electricity and internet so that you’re comfortable in your new home from day one.
Happy moving!
&nbsp;
<hr />
1 Source:<a href="https://moneysmart.gov.au/student-life-and-money/moving-out-of-home">Moving out of home &#8211; Moneysmart.gov.au 
</a>
2 Source:<a href="https://auspost.com.au/home-contents-insurance/information-and-guides/moving-house-checklist">Moving house: The checklist you need &#8211; Australia Post (auspost.com.au) 
</a>
3 Source:<a href="https://www.consumer.vic.gov.au/latest-news/my-moovers-ajanvi-pty-ltd-media-release">Moving over summer? Choose your removalist carefully &#8211; Media release &#8211; Consumer Affairs Victoria 
</a>
4 Source:<a href="https://www.aer.gov.au/consumers/my-energy-service/moving-house">Moving house | Australian Energy Regulator (aer.gov.au) 
</a>
5 Source:<a href="https://www.budgetdirect.com.au/home-contents-insurance/guides/moving-house/moving-house-checklist.html">Moving House Checklist | Budget Direct 
</a>

The Simple Moving House Checklist 2022

It’s considered to be among all the capital-M ‘Major Life Events’ along with starting a new job, getting sick or injured, getting hitched or divorced, and having kids. Yep, moving house is a deceptively taxing process that can have a serious emotional, mental, and physical impact on us.
Doesn’t seem like it, does it? You might scroll through Instagram and see family and friends wildly grinning in front of a ‘SOLD’ sign, along with videos of renovation makeovers or room tours.
<h3>What do I need to know?</h3>
<ul>
<li data-leveltext="" data-font="Symbol" data-listid="3" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">When getting ready to move, make sure you tackle the boring things like redirecting your mail, organising your removalist and disconnecting utilities first.  </li>
<li data-leveltext="" data-font="Symbol" data-listid="3" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Consider how you can start packing early by getting to work with your most un-used items first.  </li>
<li data-leveltext="" data-font="Symbol" data-listid="3" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Before packing make sure you’ve got everything you need,  I.e.e.g. packing boxes and something to wrap your valuables in. </li>
<li data-leveltext="" data-font="Symbol" data-listid="3" data-list-defn-props="{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}" aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Make sure you update your details with MyGov details and other relevant organisations to ensure your new address is included.  </li>
</ul>
As ‘hygge’ as the vibe may be in the end, and whether you’re buying or renting, you’ll be pouring blood, sweat and tears into your new home. We’re here to help you reduce the tears, and hopefully avoid the blood. But you’ll definitely be getting sweaty.
<h2>Tackle boring admin</h2>
Some of the most tedious things you need to do before you move includes all the administrative rubbish that none of us really want to think about. But imagine how good you’ll feel once you knock it all out of the way…then you can focus on the actual packing and moving.
<ul>
<li style="list-style-type: none;">
<ul>
<li>Visit the Australia Post website to <a href="https://auspost.com.au/receiving/manage-your-mail/redirect-hold-mail">redirect or hold your mail</a> </li>
</ul>
</li>
</ul>
You can elect to do this for one month, three months, or more. It’s a useful service to set up especially as you continue to update all your service providers with your new details.
<img decoding="async" loading="lazy" class="size-medium wp-image-3764 aligncenter" src="https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-Person-packing-their-belongs-to-move-1.png" alt="Packing boxes to move house" width="300" height="300" />
<ul>
<li style="list-style-type: none;">
<ul>
<li>Choose your removalist carefully</li>
</ul>
</li>
</ul>
As noted by the government website Moneysmart, you have a few options when it comes to moving your stuff<a href="#1">1</a>. You can ask your friends and family for help, hire a van or book a removalist.
However, if you do choose to go with a removalist, it’s important to choose wisely. Not all operators provide the same quality of service.
For instance, Consumer Affairs Victoria received 122 reports about a company called My Moovers over a two-year period. Among other things, these included allegations of aggressive behaviour and a lack of care.<a href="#2">2</a>
To try and avoid a bad experience, Consumer Affairs Victoria advises getting recommendations from friends and family. Choosing a service accredited with an industry body, such as the <a href="https://afra.com.au/">Australian Furniture Removalists Association</a>, might also help<a href="#3">3</a>.
<ul>
<li style="list-style-type: none;">
<ul>
<li>Disconnect and connect utilities</li>
</ul>
</li>
</ul>
The Australian Energy Regulator recommends giving your gas and electricity retailers at least 3 days notice before you move out<a href="#4">4</a>. This way, they can disconnect service from your old address and get everything running smoothly by your move-in date.
In some cases, providers might also need access to your residence, so if this is the case, there might be a delay in connection. Make sure you’ve got a fallback option in case you can’t get connected right away… if your hot water isn’t connected when you move in, then we hope you like cold showers until it is.
If you’re thinking it might be a good time to change providers or see what’s out there, iSelect can help you <a href="https://www.iselect.com.au/moving-house/">organise gas, electricity, and internet at your new home</a> to make your move smoother and easier. You might even find a better deal!
<h2>Time for hard yakka</h2>
Once you’ve gotten the ball rolling and you’ve ticked off some admin, it’s time to start collecting cardboard boxes and containers and start packing.
Start with the things you don’t use everyday – so books, ski gear, that fruit &amp; veggie juicer you never use…
It’s also the time to divide and conquer. When you pack, put things you definitely want to keep straight into the box. So chuck your favourite books straight in there and put the ski gear aside if you’re unsure about it.
Try to distribute the weight evenly across each box, and label boxes on the side so you know what’s in them when they’re stacked up on top of each other.
It goes without saying, but take special care of glass items. Wrap them up in layers of bubble wrap, newspaper, or even old clothing. Handle these items gingerly and label these boxes as ‘fragile’. The last thing you want is a broken bottle of perfume or cologne in transit.
<h2>Once you’ve got the keys…</h2>
For things like Medicare or Centrelink, you can update your details through your myGov account. Just log in and click on ‘Account Settings’ from the top menu. From there, you’ll just need to click on ‘Update Your Details’ and follow the prompts.
For other organisations and service providers, you’ll need to update your address with them directly. This may include:
<ul>
<li>Banks, credit unions, and your superannuation fund</li>
<li>Accountant and legal advisors</li>
<li>Doctors, dentists, and specialists</li>
<li><a href="https://www.ato.gov.au/Individuals/Tax-file-number/Update-your-TFN-details/?=redirected_updatedetails#Ifyourdetailsareincorrect">The Australian Taxation Office</a></li>
<li><a href="https://www.aec.gov.au/enrol/update-my-details.htm">The Electoral Commission (you can enrol to vote in your new electorate after one month of living at your new address)</a></li>
<li>Internet service provider</li>
<li>Local clubs and associations</li>
<li>Your children’s school</li>
<li>Subscriptions</li>
<li>Insurance companies</li>
</ul>
Although this process can take some time, it might be a good idea to get started as soon as you’re able. This way, you’ll be less likely to miss out on any important mail or information.
<h2>Final touches</h2>
On the last day before the move, give your old house a decent clean, especially if you’re a renter (you do want your bond back, after all). You don’t need to toil away like Cinderella and scrub the floors with an old brush, but you do need to put in some effort and leave your old place in good condition. If you’re really pressed for time, or you just hate cleaning, you might want to hire a cleaner as well. Again, weigh up the costs and benefits of either option – either option is fine, so just choose what works best for you.
Moving house is a lot of hard work, but it should also be a rewarding process. No matter what your circumstances are, you have a new chapter to look forward to. Best of luck!
&nbsp;
<hr />
1 Source: <a href="https://moneysmart.gov.au/student-life-and-money/moving-out-of-home">Moving out of home &#8211; Moneysmart.gov.au 
</a>
2 Source: <a href="https://www.consumer.vic.gov.au/latest-news/my-moovers-ajanvi-pty-ltd-media-release">Moving over summer? Choose your removalist carefully &#8211; Media release &#8211; Consumer Affairs Victoria 
</a>
3 Source:<a href="https://www.consumer.vic.gov.au/latest-news/my-moovers-ajanvi-pty-ltd-media-release"> https://www.consumer.vic.gov.au/latest-news/my-moovers-ajanvi-pty-ltd-media-release</a><a> 
</a>
4 Source:<a href="https://www.aer.gov.au/consumers/my-energy-service/moving-house"> Moving house | Australian Energy Regulator (aer.gov.au)</a>

Tips For Moving House Without All The Stress

Simple Tips For Finding The Right Real Estate Agent

What’s the old saying? That ‘a change is as good as a holiday’? Well, it turns out a change can be downright confusing <a class="Hyperlink SCXW157309207 BCX0" href="https://www.iselect.com.au/health-insurance/" target="_blank" rel="noreferrer noopener">when it comes to health insurance</a>, and there are plenty of them to discuss in 2022. 
<h3>What do I need to know?</h3>
<ul>
<li>Typically, health funds increase policy premiums on April 1, but many have delayed their increases this year</li>
<li>A smaller number of funds (such as Australian Unity) went ahead with their rises on the traditional date</li>
<li>This year’s average premium rise is 2.70 per cent</li>
<li>Aussies could see lower premiums in the future after the Federal Government announced a deal that would reduce the cost of medical devices used in the private health sector<a href="#10">10</a></li>
</ul>
<hr />
<h2>The timing of premium increases</h2>
A recent study commissioned by iSelect revealed that almost half of Australians surveyed with private health cover claim they’re either very confused or somewhat confused about if and when their premium is increasing in 2022<a href="#1">1</a>.
iSelect Commercial Coordinator – Health, Hayley Crowden said it’s understandable why so many policy holders may be feeling this way.
“Many health funds have decided to delay the date of their annual premium increases this year, when typically funds up their premiums on April 1 annually,” Ms Crowden said.
While a smaller number of funds (such as Australian Unity) went ahead with their increases on the traditional date, a number of funds including AIA and nib have pushed their increases back<a href="#2">2</a>.
nib Managing Director, Mark Fitzgibbon said earlier this year that the decision was a result of the ongoing financial and economic pressures on the community, fueled by the pandemic.
“It’s a highly stressful time and I don’t want to downplay the financial toll it’s having on our members,” Mr Fitzgibbon said<a href="#3">3</a>.
It’s one of the reasons shared by other funds that have announced deferrals, the majority of which –including Bupa, AHM and Latrobe – have all postponed premium increases too<a href="#4">4</a>.
<h2>The size of premium increases</h2>
In Australia, health insurance premiums are increased to keep up with rising health care costs, but funds are required to seek approval through the Federal Government and justify any hikes<a href="#5">5</a>.
This year’s average premium rise is 2.70%, which is the lowest average increase since 2001<a href="#6">6</a>.
But a price rise is still a hit to the household budget and iSelect has crunched the numbers.<a href="#_ftnref1" name="_ftn1"></a>
<img decoding="async" loading="lazy" class="size-medium wp-image-3515 aligncenter" src="https://blogwp.web-prd.aws.iselect.com.au/wp_uploads/2022/09/Blog-Generic-Images-Crowd-monitoring-increased-prices-1-300x300.png" alt="People monitoring health insurance premium increases" width="300" height="300" />
The 2.70% average increase could cost families an extra $125 per year on average, while singles could be parting with an additional $58 a year on average<a href="#7">7</a>.
“It’s important to remember that’s an average only. In fact, premiums for most policy holders go up by 3.06% on average this year as the big five funds who make up the majority of market share all increase their premiums by an average of at least 3.06%<a href="#8">8</a>,” Ms Crowden said.
Despite this year’s average increase the lowest in two decades, many families may already be struggling with the cost of private health insurance.
In fact, over the past decade private health insurance premiums have increased on average by more than 50%<a href="#9">9</a>, so it’s understandable that Aussies may be concerned about the affordability of their health insurance.
It’s wise to first <a href="https://www.iselect.com.au/CDSX/Welcome_execute.action">explore potentially more affordable options</a> rather than simply cancelling your cover altogether, especially when iSelect research highlights that there are savings or better value to be had for many if they do shop around*.
85% of Aussies with private health cover iSelect recently surveyed, who switched policies in the past two years, said they were able to save money or find better value. 39% surveyed claimed they saved at least $100 off their annual premiums, while 18% said they saved at least $300 a year<a href="#1">1</a>.
<a href="#_ftnref1" name="_ftn1"></a>
<h2>Watch this space</h2>
So, after laying out the changes to how health premiums are changing in 2022, what about in the years to come? Stay tuned on this.
Aussies could see their private health insurance premiums lower in the future after the Federal Government announced a deal that would reduce the cost of medical devices used in the private health sector and improve the affordability private health insurance as a result. Starting from this year, the reforms are expected to be implemented by the Department of Health in stages, so they’re not expected to be fully implemented until 2025<a href="#10">10</a>.
<h2>Got questions? We can help</h2>
If you’ve got any questions about how your health policy could be impacted by potential rate rises this year, feel free to call our friendly team on 13 19 20. 
 
<hr />
1 iSelect commissioned i-Link Research to conduct a national online survey between 1st and 9th of February. The sample is n=1,500 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: Australian Unity public announcement: <a class="Hyperlink SCXW18831933 BCX0" href="https://www.australianunity.com.au/health-insurance-premium-changes" target="_blank" rel="noreferrer noopener">Health Insurance Premium Changes 2022 &#8211; Rate Review | Australian Unity</a>, AIA public announcement: <a class="Hyperlink SCXW18831933 BCX0" href="https://www.aia.com.au/en/individual/health-insurance.html" target="_blank" rel="noreferrer noopener">Health Insurance | AIA Australia</a> &amp; nib public announcement: <a class="Hyperlink SCXW18831933 BCX0" href="https://www.nib.com.au/media/2022/01/nib-defers-premium-increases-for-members" target="_blank" rel="noreferrer noopener">nib defers premium increases for members | nib</a>
3 Source: nib public press release: <a class="Hyperlink SCXW68569084 BCX0" href="https://www.nib.com.au/media/2022/01/nib-defers-premium-increases-for-members" target="_blank" rel="noreferrer noopener">nib defers premium increases for members | nib</a>
4 Source: Bupa public announcement: <a class="Hyperlink SCXW28601052 BCX0" href="https://media.bupa.com.au/bupa-to-defer-premium-increases-for-six-months/" target="_blank" rel="noreferrer noopener">Bupa to defer premium increases for six months</a>, AHM public announcement: <a class="Hyperlink SCXW28601052 BCX0" href="https://help.ahm.com.au/hc/en-us/articles/4411562333711-We-re-postponing-our-1-April-2022-premium-increases-Woo-" target="_blank" rel="noreferrer noopener">We’re postponing our 1 April 2022 premium increases. Woo! – Help &#8211; ahm</a>, Latrobe public announcement: <a class="Hyperlink SCXW28601052 BCX0" href="https://www.latrobehealth.com.au/news/2022/latrobe-health-services-six-month-rate-freeze/" target="_blank" rel="noreferrer noopener">Latrobe Health Services’ six-month rate freeze | Latrobe Health Services</a>
5 Source: <a href="https://www.ombudsman.gov.au/publications/brochures-and-fact-sheets/factsheets/all-fact-sheets/phio/health-insurance-premium-increases">https://www.ombudsman.gov.au/publications/brochures-and-fact-sheets/factsheets/all-fact-sheets/phio/health-insurance-premium-increases</a>
6 Source: <a href="https://www.health.gov.au/ministers/the-hon-greg-hunt-mp/media/delivering-australias-lowest-private-health-insurance-premium-change-in-21-years">https://www.health.gov.au/ministers/the-hon-greg-hunt-mp/media/delivering-australias-lowest-private-health-insurance-premium-change-in-21-years</a>
7 Source: Based on weekly calculations included in Minister&#8217;s media release multiplied by 52 weeks to reach an annualised figure <a class="Hyperlink SCXW223048465 BCX0" href="https://www.health.gov.au/ministers/the-hon-greg-hunt-mp/media/delivering-australias-lowest-private-health-insurance-premium-change-in-21-years" target="_blank" rel="noreferrer noopener">https://www.health.gov.au/ministers/the-hon-greg-hunt-mp/media/delivering-australias-lowest-private-health-insurance-premium-change-in-21-years</a>
8 Source: Calculated as a weighted average based on the percentage of policies held in the respective funds per the APRA Operations of Private Health Insurers Annual Report data 2020-21 (<a class="Hyperlink SCXW202985123 BCX0" href="https://www.apra.gov.au/operations-of-private-health-insurers-annual-report" target="_blank" rel="noreferrer noopener">https://www.apra.gov.au/operations-of-private-health-insurers-annual-report</a>) and <a class="Hyperlink SCXW202985123 BCX0" href="https://www.health.gov.au/resources/publications/average-annual-increases-in-private-health-insurance-premiums" target="_blank" rel="noreferrer noopener">https://www.health.gov.au/resources/publications/average-annual-increases-in-private-health-insurance-premiums</a>
9 Source: Calculated as the compound increase in premium from 2012-2022 using industry average increases in premium at <a class="Hyperlink SCXW56697816 BCX0" href="https://www.health.gov.au/resources/publications/average-annual-increases-in-private-health-insurance-premiums" target="_blank" rel="noreferrer noopener">https://www.health.gov.au/resources/publications/average-annual-increases-in-private-health-insurance-premiums</a>
10 Sources: <a href="https://www.health.gov.au/ministers/the-hon-greg-hunt-mp/media/reforms-to-deliver-lower-prices-for-medical-devices-and-lower-private-health-insurance-premiums">https://www.health.gov.au/ministers/the-hon-greg-hunt-mp/media/reforms-to-deliver-lower-prices-for-medical-devices-and-lower-private-health-insurance-premiums</a> &amp; <a href="https://www.health.gov.au/health-topics/private-health-insurance/the-prostheses-list/the-prostheses-list-reforms">https://www.health.gov.au/health-topics/private-health-insurance/the-prostheses-list/the-prostheses-list-reforms</a>

How Health Insurance Premiums Are Changing In 2022

June&#8230;  when cold weather really kicks in, and many young families gear up for yet another round of school holidays.  
It’s also the time of year when we say goodbye to the current year, and hello to a new one! 
For many of us this can mean thinking about our tax returns and sifting through that shoebox in the back of our wardrobes that’s over-flowing with receipts, right?  
It’s a time-consuming and tedious task combing through those work-related expenses, so much so many of us could be forgetting something else that’s a good idea to consider around this time of the year – and that’s <a href="https://www.iselect.com.au/health-insurance/">private health insurance.</a>  
If you already have private health cover, the end of financial year is a great time to <a href="https://www.iselect.com.au/CDSX/Welcome_execute.action">compare from a range of policies and make sure you are still getting value for money.</a>  
And for those without cover, it’s a good time to think about whether you should take it out, particularly if you are a higher income earner or about to turn 31.  
Read on to find out why.  
<h2>Confused about how private health insurance relates to tax? Let me help you out.  </h2>
You may have heard of the Medicare Levy Surcharge (or MLS). Let’s break down for those many Australians feeling confused.  
iSelect Commercial coordinator – Health, Hayley Crowden said the Medicare Levy Surcharge (MLS) is an additional tax designed to reduce the burden on our public health system.  
“It encourages those higher income earners to take out private health insurance,” Ms Crowden said.  
Singles with a taxable income over $90,000, who don’t hold an appropriate level of hospital cover pay an additional 1% tax, which increases to 1.25% for those earning over $105,000, and to 1.5% for those earning over $140,000<a href="#1">1</a>. 
Couples and families with a combined taxable income of over $180,000 pay an additional 1% levy, which increases to 1.25% for those with an income over $210,000, and 1.5% if they have combined earnings of over $280,000 and don’t hold an appropriate level of hospital cover<a href="#2">2</a>. 
“Some higher-income earners may be able to find private hospital cover for a similar price to the additional tax they may be required to pay via the MLS. 
“In some instances, there may be very little cost difference between paying the additional tax or taking out a level of hospital cover which may provide significant benefit should you experience a health issue in the future,” Ms Crowden said.  
<h2>Now here’s one for the under 30s called Lifetime Health Cover (LHC) loading.  </h2>
“Unlike the Medicare Levy Surcharge, LHC loading is not a tax. It’s a government penalty designed to encourage younger and healthier Australians to take out private health insurance earlier in life,” Ms Crowden said.  
People who do not hold eligible hospital cover by July 1st following their 31st birthday, who decide to take it out later in life, will have to pay 2% LHC loading on top of their hospital premium for every year they were without cover, and pay it for 10 years. The maximum loading is 70%<a href="#3">3</a>.” 
<h2>Household budgets are tightening, so review more than just your private health insurance this EOFY</h2>
According to the Consumer Price Index (CPI), Australia&#8217;s inflation rate increased by 5.1% in the 12 months to the March 2022 quarter<a href="#4">4</a>, and with further interest rate rises expected<a href="#5">5</a>, many Australian households are under increased financial pressure and are looking for ways to save.  
This makes the 2022 EOFY a great time to review all of your household expenses to find out if you could save or find better value, <a href="https://www.iselect.com.au/energy/">such as your energy bills.</a>  
iSelect Commercial Manager – Energy, Scott Star said many customers may be paying more than they need to on their power bills, especially those who have been on the same plan for a while.  
“We know times are really tough for many Aussies, which is why we’re encouraging people to compare energy plans. You could find another option that delivers ongoing savings.” 
“Don’t pay more than you need to. Talk to iSelect* and we’ll try and help you out,” Mr Star said.  
 
<hr />
1<a href="https://www.privatehealth.gov.au/health_insurance/surcharges_incentives/medicare_levy.htm" target="_blank" rel="noreferrer noopener">Medicare Levy Surcharge (privatehealth.gov.au)</a>
2<a href="https://www.privatehealth.gov.au/health_insurance/surcharges_incentives/medicare_levy.htm" target="_blank" rel="noreferrer noopener">Medicare Levy Surcharge (privatehealth.gov.au)</a>
3<a class="Hyperlink SCXW97108437 BCX0" href="https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Private-health-insurance-rebate/Lifetime-health-cover/" target="_blank" rel="noreferrer noopener">Lifetime health cover | Australian Taxation Office (ato.gov.au)</a>
4<a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release">https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release</a> 
5<a href="https://www.rba.gov.au/media-releases/2022/mr-22-12.html">https://www.rba.gov.au/media-releases/2022/mr-22-12.html</a>

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