28 Nov Laziness is costing Aussies!
Many Aussie families are throwing away thousands of dollars by allowing loyalty to cost when it comes to insurance and finance.
Research earlier this year from finder.com.au, revealed that many Australians could be paying the price for their ‘loyalty’ mentality when it comes to everyday living costs. Many surveyed put it down to laziness!
The survey of Australians shows that while 45% of adults have plans to switch at least one provider this year, 55% – the equivalent of more than 10 million Australians – won’t be, which could cost them thousands of dollars.
Paul Fox from Fox Mortgages has looked into these findings. “It is surprising that whilst many of us queue for petrol at a fuel station to get a few cents saving, many of the same number of Australians stay loyal to their current providers due to laziness or being scared of change – potentially costing themselves thousands of dollars a year.
“Regular ‘financial health checks’ of your bills and outgoings is probably one of the most significant things you can do to improve their financial position.
“The good news is that 45% of Australians will be actively reviewing their current set up for some products. For the remaining 55% the ‘lazy tax’ could be eating away at cash that could be put to better use elsewhere,” says Paul.
Other research has found 40% of Australians still remain with their childhood bank, and will stay with their health fund 11.8 years on average.
Meanwhile, 63% – the equivalent of 12 million Australians – have felt the pinch of rising energy prices but only 14% switched energy providers in 2017.
78% of Aussies don’t compare home or car insurance, according to the General Insurance Industry Currency Report, meaning they are missing out on savings.
How much money can you save by switching?
- Home loans: The mortgage is usually the biggest household expense and the greatest opportunity for savings. Right now your home loan rate should have a ‘3’ in front of it. Even if you got a more modest discount of .25% off the standard variable home loan rate, this is worth $21,000 in savings to you over the life of your loan.
- Mobile phone plans: By switching mobile phone providers, you can save up to $200 – $350 per year depending on whether you need just a plan or phone package. If you’re on a contract and you’ve paid off your phone but you’d still like to keep using it, it’s worth switching to a SIM-only plan to save hundreds. You could save over $500 a year by changing plans and providers.
- Health insurance costs: Premiums will rise on average 3.95% on 1 April 2019. Not only is it a good time to make sure you’re getting value for money from your policy, but if you pay 12 months up front before April you can lock-in 2018 prices – saving yourself on average close to $200.
- Home and car insurance costs: We’ve spoken to Rebecca Fox from Fox Insurance Solutions to see what savings you can expect. She recently saved a business client over $1,100 on their annual business insurances, she saved a client with two motor vehicles $700 by combining the policies and can usually anticipate savings of $250-$300 on building and contents cover.
“These savings can have a significant impact on the family budget, don’t let your laziness cost you.”
To book a home loan review and see if you can save, call the team on 08 9304 9682.