Throw lettuce, buy avocado: five inflation-busting strategies to try

But deadlines beckon and efforts of journalistic savvy can fall short. And with some extreme trepidation, I’m now trying to offer some avocado-related money-saving advice for everyone looking to tackle the new affordability challenge of, well, everyone.

Figures released this week confirmed the cost of purchasing a typical basket of consumer goods and services rose 6.1 percent last financial year. The Ministry of Finance estimates this growth rate will reach 7.75 percent by the end of the year. Ouch.

The price increase will be felt by low-income households, for which non-discretionary goods such as gasoline, groceries and housing are already a burden.

Am I sensitive to the real cost pressures Australians face? I believe. Worryingly, the price pressures will be felt most by low-income households, where non-discretionary goods such as gasoline, groceries and housing are already a larger part of their budgets. It is also true that many such households are already money-saving ninjas and may have implemented many of the savings strategies outlined below.

However, for anyone who may be feeling the pressure of inflation or higher interest rates for the first time, here are five sensible strategies to save money.

Replacement

Brace yourselves, I’ll say it now: it’s time to ditch the lettuce and buy some avocado. Or, ditch relatively expensive products for cheaper alternatives.

The weakness in the consumer price index as a measure of changes in the cost of living is that it does not take into account what economists call “substitution,” which has always been the basic strategy of consumer survival. Of course not everything can be replaced, but many things can.

Humans need a mixture of carbohydrates, fats and proteins, plus a number of micronutrients such as vitamins, to thrive. But the exact food ingredients where these come from can vary, as evidenced by the fact that vegetables are always grown seasonally.

While floods have disrupted supplies of many greens, Australia is experiencing a glut of avocados, with farmers urging shoppers to splurge for as little as $1 a pop. To get your quotient from dark leafy vegetables, try substituting frozen spinach, which is cheaper than fresh.

The shift works on other things too: going to the movies for a night on the couch with popcorn and a free catchup streaming service to the air. Get rid of eating out to prepare delicious meals at home. You get the ID.

Have a look

In addition to mixing up the items you buy, you should also consider switching from where you get them. Whether it’s your mortgage, your energy provider, your gas station or your supermarket, the best way to find a better deal is to shop around.

Retailers and suppliers can only get away with rising prices to the point where consumers walk across the street and get a better deal.

Yes, there is a market that is highly concentrated by a few dominant suppliers, but in many cases it is possible to find alternatives. So call a different lender or insurance company or visit another grocery store this weekend.

Embracing used goods

Question your need to buy everything new. Interestingly, one of the biggest contributors to inflation in the June quarter was furniture, which rose 7 percent, due to increased transportation and manufacturing costs. So there’s never been a better time to browse websites like Facebook marketplace and Gumtree for cheap or free home furnishings. For clothes and shoes, don’t forget the op shop.

Consider sharing

From cars to clothes to tools, consider whether you need have the items you need, or if you can rent them instead.

Try websites like Car Next Door for cars and Glam Corner and The Volte for dresses and accessories. Basically, before you buy, google “rent…” Don’t forget to ask friends or family if you can borrow stuff too.

Sleep on it

Load

Of course, some purchases are essential and unavoidable, but part of everyone’s budget is choice, whether it’s dining out, entertainment, vacations, or buying “nice-to-have” items, like new fashion clothes or grooming services. personal. .

Given rising inflation and rising mortgage costs, it’s time to revisit your definition of “essential.”

So the next time you shop online and add something to your cart, leave it there overnight… and sleep on it. Oftentimes, you’ll wake up and decide you don’t really need it, or this simple action alone can trigger a reminder email or target ad from a retailer offering discounts.

Does all this solve inflation? No, but I hope this helps your budget.

• The advice given in this article is general in nature and is not intended to influence readers’ decisions about investments or financial products. They should always seek their own professional advice which takes their own personal circumstances into account before making any financial decisions.

Jessica Irvine is the author of the new book Money with Jess: Your Ultimate Guide to Household Budgeting. You can follow more of Jess’s money adventures on Instagram @moneywithjess and sign up to receive her weekly email newsletter.

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