Fuel Over $2 a Litre? How Perth Families Can Find More Room in the Budget

FuelWatch recently reported Perth's average unleaded petrol price at more than $2.30 a litre, with a large difference between the cheapest and most expensive service stations.

Add higher grocery bills, insurance, utilities and mortgage repayments, and it is easy to see why many Perth families feel like their money is not stretching as far as it used to.

You cannot control the price of petrol. But you can make sure you are not paying more than you need to across the rest of your household budget.

Here are a few places to start.

Check FuelWatch before you fill up

This is an easy win for WA drivers.

FuelWatch publishes tomorrow's petrol prices from 2.30 pm each day, and those prices are locked in for the following day. The difference between service stations can be significant.

You do not need to drive across Perth chasing cheap fuel. Check the prices around the suburbs you are already travelling through and plan your fill-up when it makes sense.

Look at the big household expenses first

When money feels tight, it is tempting to start cutting every small luxury. But before worrying about a $5 coffee, look at the bigger regular expenses:

• your mortgage
• insurance
• electricity
• phone and internet
• car finance
• personal loans
• credit cards.

Finding $100 a month across one of your larger expenses can make a much bigger difference than cancelling one small subscription.

When did you last check your home loan?

For most homeowners, the mortgage is one of the biggest expenses in the family budget. So it makes sense to review it.

Check your:

• current interest rate
• monthly repayment
• annual package fee
• offset account
• redraw
• loan features.

A home loan review in Perth does not automatically mean refinancing. Sometimes another lender may offer a better overall deal. Sometimes your existing lender may be willing to improve your rate. And sometimes your current home loan is already a good fit.

The important thing is knowing.

At Mesh Finance, we compare the full cost of the loan, not just the advertised interest rate.

Review your insurance and regular bills

Insurance premiums can quietly increase each year. Check your home and contents, car, health and landlord insurance if applicable.

The same goes for electricity, internet and mobile plans.

You do not need to spend hours chasing tiny savings. Start with the biggest bills and work down.

And when comparing insurance, make sure you are looking at the level of cover as well as the price.

Have expensive debts crept in?

Credit cards, personal loans and car loans can take a big chunk out of the monthly budget. If you are managing several repayments, it is worth looking at the interest rates as well as the repayment amounts.

Depending on your circumstances, homeowners with enough equity and borrowing capacity may be able to consolidate eligible debts when refinancing their home loan. But it needs to be structured properly.

Moving a five-year personal loan into a 30-year mortgage may reduce the monthly repayment, but it could cost more over time if the debt is left there for the full loan term.

The aim should be to improve cash flow while still having a plan to pay the debt down.

Make your offset account work

If you have a full offset account, make sure you are actually using it.

If your home loan is $600,000 and you have $30,000 sitting in a full offset account, interest is generally calculated on $570,000.

On the other hand, if you are paying an annual package fee for an offset account that rarely holds much money, it may be worth checking whether a simpler product would suit you better.

The right home loan depends on how you actually manage your money. Our offset vs redraw calculator shows what the difference could be worth to you.

Do a quick household budget reset

You do not need a complicated spreadsheet. Pull up the last month or two of transactions and look at where the money is going.

Check your:

• Essentials: mortgage, groceries, fuel, utilities and insurance.
• Lifestyle: takeaway, entertainment, subscriptions and shopping.
• Goals: holidays, Christmas, renovations and paying down debt.

Then ask: is this still where I want my money going?

Our Money by Design budgeting tool can also help you get a clearer picture of your household spending.

Start with the things you can control

The cost of living in Perth is putting pressure on plenty of households. You cannot control fuel prices, inflation or interest rates. But you can check whether you are paying more than you need to for the expenses you already have.

Start with FuelWatch. Review your insurance and bills. Look at expensive debts. And if you own a home, check whether your mortgage is still competitive.

At Mesh Finance, your Perth mortgage broker, we can review your current home loan, compare suitable alternatives and work out whether refinancing actually makes sense.

Sometimes moving lenders is worthwhile. Sometimes asking your current bank for a better rate is enough. Either way, it is worth checking.