Five Household Costs & How To Cut Them Down

The housing market has been described by those in the know as a bit of a bubble at the moment. The prices of property are soaring, rising by an average of 11% in some areas. So for an average family, mortgage costs will have to rise along with it. All of this makes it plain to see that being able to cut costs of running a home, in several different areas is so important. Why pay more for things if you don’t have to, right?

So here are several ways that you can look to cut the costs of running your home and reducing your household bills.



Let’s face it, a majority of a household income is going to go towards paying off your mortgage. You can be paying thousands off it off over the course of a year, but still gaining some extra interest on top of that, to pay back. The best way to pay less for your mortgage is to get a better mortgage deal. It can take a little time and planning, but it really can pay off looking at better options and a different provider.

Take, for example, a standard variable rate. After any introductory offers (if there are any), the rate is likely to increase to something like just over 4% which really is quite high. But you’d be surprised just how many people stay with that rate. A tracker mortgage rate is around 2.4% depending on the provider (current stats from Auswide Bank). So why are you still paying more than you should be? So if you haven’t checked your mortgage for a while, then have a look and see what rate you are paying and look for a better option. There are plenty of banks that want your business so look for cheaper rates and switch.

Energy Costs

One of the second highest things that our household income goes on is our household energy bills. We all need to use gas and electricity, but sometimes we are going to be charged more for it than others are. So as with the mortgage rates, you need to shop around for energy providers and look for better options. If there are any that have fixed price contracts, then they are a good idea to look at, as you know you will only be paying a certain amount for a set amount of time. Loyalty doesn’t get you anywhere when it comes to energy providers.

As well as looking at cutting the actual cost of what you use, you can look to make your usage less too. There are several options that will use less energy. Even something like changing your light bulbs from normal light bulbs to LED light bulbs can make a difference to the amount of electricity that you use. You could also look at getting something like solar panels on the outside of your house, as it can be a way to get your own energy naturally. As somewhere like Logan City Electrical will tell you, there are set up costs for this kind of thing. But the amount that you will save on your energy bills can be pretty high. So it is worth looking into, especially in a sunny climate like we live in. Washing laundry on cold, not using a tumble dryer, and lowering your thermostat a few degrees are all things that will help to reduce the amount of energy that you use in the home too. Have you got any other things that you would add to the list?

Water Supply Cost

Another utility bill that needs to be considered is your water bill. For many water companies, they will make a presumption about how much water you actually use. If you have a four bedroom house, then they will have a chart that tells them the usage for that kind of home. The thing is, they don’t always get that calculation right. So if your water bill is just guess work at the moment, it could be worth getting a water meter. Then you can see and track how much you are spending on water. In a lot of cases, it is going to be less than they think you are using. This is especially true if you have a large house but live alone, for example. So that is worth looking at too.

Household Appliances and Tools

A cost that can be quite significant when things need to be replaced is the cost of household appliances and tools. If you’ve got an oven or refrigerator on the blink, then it can be pretty expensive to get them replaced. Though these costs of these aren’t going to be monthly or even an annual cost, they can still be a lot of money up front that you don’t necessarily have. So look for places online that offer second-hand goods, as well as selling groups on places like Facebook. You’d be surprised at what good quality some of the things people sell are, and at bargain prices. Just make sure that you get them fitted correctly, especially for things like an oven.


Having home insurance is a must. But the cost of it can be quite high. The good news is that it can be fairly simple to cut the costs of your insurance premiums. Getting better locks on doors, especially double bolted doors, is a great way to cut costs. If they presume your home is more secure, then they will presume the risk is lower. The same goes for getting a burglar alarm fitted, an outside light or a CCTV-style camera on the premises. Joining a neighborhood watch scheme could help too. So there are many ways to help reduce the cost of your insurance premium, without it having to cost you a lot to sort.

There is no getting away from these costs of running a home. But there is plenty of chance to make them significantly cheaper than they are at the moment. Just taking some time to do a little planning, switching, and a few changes will make a saving!


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