Reducing household expenses: small changes that can make a big difference

With the cost of living remaining high across Australia, many households are looking for practical ways to stretch their income further. For people on a low income, even small savings each week can help reduce financial stress and create more room in the household budget.

Recent research from Anglicare Australia highlights the financial pressure faced by many Australians receiving income support, with essential expenses such as rent, food and transport continuing to outpace incomes for many households.

The good news is that there are steps you can take to reduce everyday expenses and access support that may already be available to you.

Start with a simple budget

According to Moneysmart, one of the most effective ways to save money is to understand exactly where it is going. Tracking your spending can help identify areas where small changes can lead to meaningful savings.

Try:

• Recording expenses for one or two weeks
• Reviewing bank statements regularly
• Separating essential and non-essential spending
• Setting spending limits for groceries and entertainment

A written budget can help you stay on top of bills, prepare for unexpected expenses and reduce money-related stress.

Cut energy costs

Energy bills can be a major household expense. While the national Energy Bill Relief Fund concluded at the end of 2025, many state and territory governments continue to offer rebates, concessions and hardship programs for eligible households.

Simple ways to reduce energy use include:

• Switching appliances off at the wall
• Using cold-water washing cycles
• Replacing older light bulbs with LEDs
• Running heating and cooling only when needed
• Comparing energy providers regularly

Moneysmart recommends reviewing utility providers to ensure you're receiving the best available deal for your household.

Reduce grocery spending

Food remains one of the biggest weekly expenses for most households. Planning meals, shopping with a list and buying seasonal produce can help reduce costs without sacrificing nutrition.

Helpful strategies include:

• Planning meals before shopping
• Comparing unit prices rather than package prices
• Choosing supermarket home brands
• Buying staple items in bulk when on special
• Using loyalty programs and reward points

Avoiding impulse purchases can make a noticeable difference over time.

Review phones, internet and subscriptions

Many households continue paying for services they no longer use or need.

Take time to:

• Review your mobile and internet plans
• Cancel unused streaming subscriptions
• Compare providers annually
• Consider lower-cost prepaid options

According to Moneysmart, regularly comparing plans can help ensure you're getting good value for money.

Check what assistance you're eligible for

Many low-income Australians miss out on financial support simply because they don't know it exists.

Depending on your circumstances, you may be eligible for:

• Rent assistance
• Healthcare card concessions
• Utility rebates
• Public transport concessions
• Community food relief programs
• Free financial counselling services

Government services and support programs can provide valuable assistance during times of financial pressure.

Ask for help early

If you're struggling to pay bills, it's important to seek support before debts become unmanageable. Free financial counselling services are available across Australia and can help with budgeting, debt management and negotiating payment arrangements with providers.

Every dollar counts

When money is tight, reducing household expenses isn't about giving up everything you enjoy. It's about making informed choices, reviewing services regularly and accessing the support available to you. Small changes across several areas of your budget can add up to significant savings over time.

Money-saving tip: Choose one household expense to review this week. Whether it's your electricity plan, grocery spending or mobile phone bill, a single change could save hundreds of dollars over the course of a year.

Thanks to: [anglicare.asn.au], [moneysmart.gov.au], [static.mon...art.gov.au], [energy.gov.au], [aussiesalary.com], [files.mone...art.gov.au], [my.gov.au]