Budgeting expert DARRYL EVANS has some tips for everyone feeling the pinch from rising living costs.
New Zealanders are being hit hard by rising living costs. Thousands of families are being forced to not only do away with luxury items, but also daily essentials such as heating and food. Rising rental and transport costs has only exacerbated the problem. But instead of panicking, take stock of the situation.
During the colder months, power becomes a concern so we are constantly told to conserve it. One of the key questions is ‘can we actually afford to turn it on in the first place’?
A recent survey showed that 64% of families were worried about turning on the heating. Cold homes put people's health at risk.
The social cost is starting to hurt and we’ve seen this first hand at Mangere Budgeting & Family Support Services.
Ideas for saving on power, food and petrol costs:
• It may sound simple, but using less gas, electricity and water can really help you save. This doesn't just mean turning off the lights when you leave a room, but also by making sure appliances are efficient
• Make sure you home is draft-proof. Block up drafts under doors with a snake; these cost as little as $10 or get the kids to make one out of an old pair of mum’s tights.
• Dress appropriately for the weather. Layer your clothing for maximum warmth.
• Use a hot water bottle at night instead of leaving the heater on; For children and the elderly I prefer to use a good quality wheat bag, which can be heated up in 3 minutes in a microwave and can retain heat for up to 5-6 hours
• To save on phone bills, try to make the most of your international calls during off-peak times when calls are cheaper
• Make a list when food shopping and stick to it. Plan your meals in advance and only buy the items you need. Compare food prices. Shop around for good deals and buy in bulk on items your family enjoys. Compare brands to find the best price per 100g or per kilogram.
Luxuries without the cost:
• Instead of getting takeaways or dining out, try having a special meal at home with home entertainment.
• Instead of inviting people over for a dinner party, have a potluck dinner. Preparing a couple of plates and getting your guests to bring a dish each will make it affordable to entertain at home.
• Instead of taking the kids to an entertainment park, which costs heaps, get into some activities with the family. Kids love family time and will thrive on quality time spent with their parents.
Saving on Food:
I recently read the Food Cost Survey, published by the department of Human Nutrition at the University of Otago. Their 2008 food costs are worth a read.
Food cost data is collected by Student Dieticians and analysed in the Department of Human Nutrition. The costs presented have assumed that food would be bought from a combination of these sources, and be prepared at home. Here is a small snippet of their findings:
Weekly costs (NZ$) of a balanced diet in 2008
City Diet type
Auckland Basic Moderate Liberal
Man 54 70 84
Woman 51 67 80
Adolescent Boy 69 89 107
Adolescent Girl 57 74 89
10 yr old 45 59 71
5 yr old 30 39 47
4 yr old 28 37 44
1 yr old 25 32 39
Wellington Basic Moderate Liberal
Man 58 76 91
Woman 55 72 86
Adolescent Boy 73 95 114
Adolescent Girl 61 80 96
10 yr old 48 62 75
5 yr old 32 42 50
4 yr old 30 39 47
1 yr old 26 34 40
It’s interesting to note that a family of 2 adults and 2 children living in Auckland would need to spend $285 a week for a moderate diet, compared to $305 for the same, living in Wellington.
Example 1: A family of four living in Manukau City, south Auckland, would need to budget for the following expenses on a weekly basis (average costs per week).
- 3 bedroom rental home $395
- groceries $285
- power $25
- telephone rental $12.50
- petrol $50
These are only a few of the essentials families need to pay each week without any debts and loan repayments. This alone would require the family to earn at least $767.50 each week. With most Maori and Pacific families earning less than the rest of New Zealand, you can see how difficult it is for them to manage from pay-cheque to pay-cheque. But making small changes in your lifestyles can make a huge difference.
