8 tips to manage inflation

Super and investments 101 | Date Posted: 18 January 2023

Rising inflation impacts all Australians, who may be worse off as the price of goods and services goes up. It also means that you’ll need more money for a comfortable retirement. According to ASFA’s Retirement Standard, currently singles aged 65-84 need $48,266 pa and couples aged 65-84 need $68,014 pa for a comfortable retirement*.

You can check out the Super Guru calculator to see how much super you should have today to reach a comfortable retirement by age 67. It's important though to understand how much you’ll need for the things you want, as ASFA’s definition of a comfortable lifestyle may be different to yours.

There are a few things you could consider to help manage your expenses. You might be surprised to see how little savings could add up.

1. Look at your future expenses
In times when inflation is expected to be high or continue to rise, you should look at bringing forward future expenses, as today’s costs would be lower than in the future. For example, if you need a new television, it might be cheaper now than in six months’ time. But, don’t be tempted to purchase things you don’t need, or can’t afford. To help you manage your finances, you can track your expenses to develop a budget and be aware of what you’re spending. You can use our budget planner that you can print out, fill in and work through. If you prefer to manage your budget digitally, you could consider using MoneySmart’s budget planner.

2. Shop around for the best deals
Finding a better deal on your private insurance, electricity, phone or home loan could save you hundreds of dollars a year.

  • To compare electricity providers, use the Government's Energy Made Easy website. Or, if you’re in Victoria, go to Victorian Energy Compare.
  • Check out MoneySmart for tips on choosing car insurance or home insurance.
  • Review your internet and phone usage to see if your current plan suits your needs. You may be paying for more than you need or there could be cheaper options.
  • If you have a home loan, it may pay off asking your current lender for a better deal. If they won’t, you can look for a better deal elsewhere. Check out MoneySmart for things to consider before you switch
3. Cut unnecessary expenditure
Go through your bank statements for the last few months and look for anything that isn’t essential. Look to cut out subscriptions you don’t need or look for cheaper alternatives where possible such as no-frills gym memberships, and swap take away for home cooked meals. You should also be aware of auto renewals and put a reminder in your calendar so you can review if you want to renew or not.

4. Invest in solar or reduce your energy consumption
If you have the money to invest in solar power, it could reduce your energy bills. Shop around and make sure you work out how much you need to invest and how much it is expected to reduce your energy bills by. You can also try to reduce your electricity consumption (and your bill!):
  • Run your washing machine and dishwasher only with a full load.
  • Use energy efficient appliances or lights if you can.
  • If your plan includes peak and off-peak times, try to use appliances outside peak times when tariffs are lower.
  • Turn off your appliances when not in use, especially things like gaming consoles, phones that are at 100% charged and anything that is on standby mode.
5. Get a credit card with a good deal 
To choose the best credit card for you, consider your spending habits and whether you expect to pay it off in full each month. Some credit cards offer extras such as travel insurance, a rewards program with points you can exchange for goods or services or cash back. Weigh up what you’ll get back as often you might pay for these extras with a higher interest rate or fees. 

6. Pay off any debts if you can
Owing money can not only be stressful, it’s also expensive, especially at times when interest rates are high. According to MoneySmart, the quickest way to get out of debt is the snowball method. This means you start with your smallest debt and pay off your debts one by one. This is a great method for paying off credit card or personal loan debt.

7. Consider fixing your home loan 
A fixed interest rate stays the same for a set period (for example, five years). After this time, it goes to a variable interest rate or you can seek another fixed rate at that time. When interest rates are expected to go up, fixing your home loan might cost you less. It also makes budgeting easier as you’ll know what your repayments are and will give you peace of mind. Be mindful though that if you want to switch loans before the end of the set period, you may have to pay a break fee.

8. Use the discounts you’re entitled to (pensioners)
If you’ve retired, you may be eligible for government benefits such as the Age Pension or a concession card, which can help your money go further. The kind of benefits you're entitled to generally depends on your age, assets and income. But did you know that even if you don't qualify for the Age Pension, you may still be entitled to other benefits? Find out more in this article.

Turn to Mine

Not sure how you can make the most of your money? Advisers from Mine Super Financial Advice are on hand to help you make confident and informed financial decisions. If you’re a member, you can request an appointment online or give us a call on 13 64 63.

This is general information only and does not take into account your financial situation, needs or objectives. Before acting, consider if the information is right for your needs and circumstances and read the relevant Product Disclosure Statement. The Target Market Determinations (TMD) for our financial products can be found at

* Based on ASFA’s Retirement Standard accessed on 5 December 2022.