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Big Bills Before Little Bills: 5 Household Expenses to Cut Before Your Grocery Budget
A One-Week Household Audit to Find the Savings That Really Matter
When the household budget gets tight, where do we usually look first?
The grocery bill.
We start comparing tins of tomatoes, swapping brands, stretching the mince, skipping treats and wondering whether we can shave another $10 off the weekly shop.
And yes, grocery savings matter. You know I’ll always encourage you to use your Price Book, shop carefully, cook from scratch and make the most of what you already have.
But sometimes we are concentrating so hard on saving 20 cents at the supermarket that we overlook hundreds — or even thousands — of dollars leaving the household through our bigger bills.
So before you squeeze another dollar out of the grocery budget, I have a challenge for you.
For one week, we’re going to look at the Big Bills Before the Little Bills.
The goal is simple:
Check the five biggest recurring household expenses and make sure you’re not paying more than you need to.
You don't necessarily need to change anything.
You just need to look.
Because bills we automatically pay are incredibly easy to forget.
The grocery bill.
We start comparing tins of tomatoes, swapping brands, stretching the mince, skipping treats and wondering whether we can shave another $10 off the weekly shop.
And yes, grocery savings matter. You know I’ll always encourage you to use your Price Book, shop carefully, cook from scratch and make the most of what you already have.
But sometimes we are concentrating so hard on saving 20 cents at the supermarket that we overlook hundreds — or even thousands — of dollars leaving the household through our bigger bills.
So before you squeeze another dollar out of the grocery budget, I have a challenge for you.
For one week, we’re going to look at the Big Bills Before the Little Bills.
The goal is simple:
Check the five biggest recurring household expenses and make sure you’re not paying more than you need to.
You don't necessarily need to change anything.
You just need to look.
Because bills we automatically pay are incredibly easy to forget.
Why Start With the Big Bills?
Suppose you save 20 cents on ten grocery items this week.
Wonderful. You've saved $2.
Keep doing that — those little savings certainly add up.
But imagine making one phone call to your mortgage lender and reducing your interest rate.
Or changing electricity plans and saving $300 a year.
Or discovering you've been paying $25 a month for subscriptions nobody uses.
Or finding a cheaper insurance policy with the same cover.
Those savings can make a much bigger difference to the household budget.
And once you've reduced those costs, the saving keeps happening month after month.
That is what we're looking for this week.
Suppose you save 20 cents on ten grocery items this week.
Wonderful. You've saved $2.
Keep doing that — those little savings certainly add up.
But imagine making one phone call to your mortgage lender and reducing your interest rate.
Or changing electricity plans and saving $300 a year.
Or discovering you've been paying $25 a month for subscriptions nobody uses.
Or finding a cheaper insurance policy with the same cover.
Those savings can make a much bigger difference to the household budget.
And once you've reduced those costs, the saving keeps happening month after month.
That is what we're looking for this week.
The Big Bills Before Little Bills Audit
Set aside 15–30 minutes each day.
Don't try to do everything at once.
One bill a day is plenty.
Grab your latest statements, open your banking app, get out your Household Spending Plan and let's see where the money is going.
Set aside 15–30 minutes each day.
Don't try to do everything at once.
One bill a day is plenty.
Grab your latest statements, open your banking app, get out your Household Spending Plan and let's see where the money is going.
Day 1 — Mortgage or Rent
For most households, housing is the biggest expense.
If you have a mortgage, find out:
• your current interest rate
• your monthly repayment
• your loan balance
• whether you are paying account or package fees
• whether comparable loans are offering lower rates.
Then ring your lender.
You don't need to threaten to leave.
Simply say:
“I've been reviewing our household expenses. Is this the best interest rate you can offer me?”
You might be surprised.
If you're considering refinancing, remember to include discharge fees, application fees and other switching costs before deciding whether a new loan is genuinely cheaper.
If you rent, there may be less room to negotiate the rent itself, but your housing costs still deserve a look.
Check whether you're paying separately for services you could reduce, whether you're making the most of available concessions, and whether your utility arrangements suit the household.
Today's goal:
Know exactly what your housing is costing you.
For most households, housing is the biggest expense.
If you have a mortgage, find out:
• your current interest rate
• your monthly repayment
• your loan balance
• whether you are paying account or package fees
• whether comparable loans are offering lower rates.
Then ring your lender.
You don't need to threaten to leave.
Simply say:
“I've been reviewing our household expenses. Is this the best interest rate you can offer me?”
You might be surprised.
If you're considering refinancing, remember to include discharge fees, application fees and other switching costs before deciding whether a new loan is genuinely cheaper.
If you rent, there may be less room to negotiate the rent itself, but your housing costs still deserve a look.
Check whether you're paying separately for services you could reduce, whether you're making the most of available concessions, and whether your utility arrangements suit the household.
Today's goal:
Know exactly what your housing is costing you.
Day 2 — Electricity and Gas
Don't assume your current energy provider is automatically giving you its best deal.
Pull out your latest bill and look for:
• daily supply charge
• usage rate
• discounts
• controlled-load charges if applicable
• solar feed-in tariff if you have solar
• whether your bill shows a cheaper offer
• any concessions or rebates you're entitled to.
Compare your current plan with others available in your area.
And compare the whole bill, not just the advertised usage rate.
A wonderfully cheap electricity rate isn't much help if it comes with a very high daily supply charge.
Today's goal:
Find out whether your loyalty is costing you money.
Don't assume your current energy provider is automatically giving you its best deal.
Pull out your latest bill and look for:
• daily supply charge
• usage rate
• discounts
• controlled-load charges if applicable
• solar feed-in tariff if you have solar
• whether your bill shows a cheaper offer
• any concessions or rebates you're entitled to.
Compare your current plan with others available in your area.
And compare the whole bill, not just the advertised usage rate.
A wonderfully cheap electricity rate isn't much help if it comes with a very high daily supply charge.
Today's goal:
Find out whether your loyalty is costing you money.
Day 3 — Insurance
Today we're checking:
• home insurance
• contents insurance
• car insurance
• health insurance
• any other policies you regularly pay.
Don't automatically choose the cheapest policy.
Cheap insurance isn't cheap if it doesn't cover what you need.
Instead, compare like with like.
Check:
• premiums
• excesses
• level of cover
• optional extras
• agreed versus market value where relevant
• discounts you may no longer be receiving
• unnecessary cover you may still be paying for.
And if your renewal has just arrived, don't simply pay it without looking.
Today's goal:
Make sure you're paying for the cover you need — and not paying for things you don't.
Today we're checking:
• home insurance
• contents insurance
• car insurance
• health insurance
• any other policies you regularly pay.
Don't automatically choose the cheapest policy.
Cheap insurance isn't cheap if it doesn't cover what you need.
Instead, compare like with like.
Check:
• premiums
• excesses
• level of cover
• optional extras
• agreed versus market value where relevant
• discounts you may no longer be receiving
• unnecessary cover you may still be paying for.
And if your renewal has just arrived, don't simply pay it without looking.
Today's goal:
Make sure you're paying for the cover you need — and not paying for things you don't.
Day 4 — Phone and Internet
Phone and internet plans are classic set-and-forget expenses.
We sign up, direct debit does its thing and months or years go by.
Check:
• how much data you actually use
• whether you're still paying off a handset
• whether the handset repayments should have finished
• whether you're paying for speeds you don't need
• whether another plan offers the same service for less
• whether your household has duplicate services.
An extra $10 or $20 a month doesn't feel enormous.
But $20 a month is $240 a year.
That's a good addition to the grocery slush fund.
Today's goal:
Pay for what you use, not what you once thought you might use.
Phone and internet plans are classic set-and-forget expenses.
We sign up, direct debit does its thing and months or years go by.
Check:
• how much data you actually use
• whether you're still paying off a handset
• whether the handset repayments should have finished
• whether you're paying for speeds you don't need
• whether another plan offers the same service for less
• whether your household has duplicate services.
An extra $10 or $20 a month doesn't feel enormous.
But $20 a month is $240 a year.
That's a good addition to the grocery slush fund.
Today's goal:
Pay for what you use, not what you once thought you might use.
Day 5 — Subscriptions, Memberships and Automatic Payments
This can be an eye-opener.
Go through at least the last two months of bank and credit-card statements.
Look for:
• streaming services
• apps
• software
• cloud storage
• gaming subscriptions
• newspaper or magazine subscriptions
• delivery memberships
• gym memberships
• paid memberships
• children's apps
• recurring donations
• anything else automatically debited.
Then ask three questions.
If the answer is no, cancel it.
And please don't cancel something you genuinely love simply because you're doing a savings challenge.
This isn't about stripping every bit of pleasure from life.
We're looking for spending that is happening without giving you enough value in return.
Today's goal:
Stop paying for things you've forgotten you're paying for.
This can be an eye-opener.
Go through at least the last two months of bank and credit-card statements.
Look for:
• streaming services
• apps
• software
• cloud storage
• gaming subscriptions
• newspaper or magazine subscriptions
• delivery memberships
• gym memberships
• paid memberships
• children's apps
• recurring donations
• anything else automatically debited.
Then ask three questions.
- Do we use it?
- Do we value it?
- Would I deliberately sign up for it again today?
If the answer is no, cancel it.
And please don't cancel something you genuinely love simply because you're doing a savings challenge.
This isn't about stripping every bit of pleasure from life.
We're looking for spending that is happening without giving you enough value in return.
Today's goal:
Stop paying for things you've forgotten you're paying for.
At the End of the Week
Now add up everything you've found.
Perhaps you saved:
And you haven't changed what you eat.
You haven't cut the grocery budget.
You haven't stopped buying coffee.
You haven't turned off every light in the house.
You've simply made sure the big bills are working as hard as you are.
Now add up everything you've found.
Perhaps you saved:
- $15 a month on the phone plan.
- $22 a month on subscriptions.
- $35 a month on insurance.
- $40 a month on electricity.
- $75 a month on the mortgage.
And you haven't changed what you eat.
You haven't cut the grocery budget.
You haven't stopped buying coffee.
You haven't turned off every light in the house.
You've simply made sure the big bills are working as hard as you are.
Don't Let the Savings Disappear
This part is important.
If you find $50, $100 or $200 a month during this audit, decide where that money will go.
You might:
• build your emergency fund
• increase mortgage repayments
• pay down debt
• add it to your grocery slush fund
• build your pantry buffer
• prepare for upcoming annual bills
• increase savings.
Otherwise the money can quietly disappear back into everyday spending.
Give every dollar you save a job.
This part is important.
If you find $50, $100 or $200 a month during this audit, decide where that money will go.
You might:
• build your emergency fund
• increase mortgage repayments
• pay down debt
• add it to your grocery slush fund
• build your pantry buffer
• prepare for upcoming annual bills
• increase savings.
Otherwise the money can quietly disappear back into everyday spending.
Give every dollar you save a job.
Your Big Bills Before Little Bills Checklist
• Check mortgage or rent costs
• Compare electricity and gas plans
• Review insurance policies
• Check phone and internet plans
• Audit subscriptions and automatic payments
• Total the monthly savings
• Decide where the savings will go
Then — and only then — come back to the smaller expenses.
Because there's nothing wrong with saving 20 cents on tomatoes.
That's good Cheapskating.
But saving $500 on insurance and 20 cents on tomatoes?
That's even better.
This Week's Cheapskates Challenge
Before trying to trim another $10 from your grocery budget, spend one week checking your five biggest recurring household expenses.
You don't need to change every provider.
You don't need to spend hours comparing.
Just make sure you know:
what you're paying, what you're getting and whether there is a better option.
Then tell us how you went.
How much did your Big Bills Before Little Bills Audit find?
Even $10 a month is $120 a year that can now work towards something more important.
Live well. Spend less. Stress less.
• Check mortgage or rent costs
• Compare electricity and gas plans
• Review insurance policies
• Check phone and internet plans
• Audit subscriptions and automatic payments
• Total the monthly savings
• Decide where the savings will go
Then — and only then — come back to the smaller expenses.
Because there's nothing wrong with saving 20 cents on tomatoes.
That's good Cheapskating.
But saving $500 on insurance and 20 cents on tomatoes?
That's even better.
This Week's Cheapskates Challenge
Before trying to trim another $10 from your grocery budget, spend one week checking your five biggest recurring household expenses.
You don't need to change every provider.
You don't need to spend hours comparing.
Just make sure you know:
what you're paying, what you're getting and whether there is a better option.
Then tell us how you went.
How much did your Big Bills Before Little Bills Audit find?
Even $10 a month is $120 a year that can now work towards something more important.
Live well. Spend less. Stress less.
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