The 5 BIGGEST waste of money in Australia

When I talk about a waste of money, I don't mean that the purchase was somewhat frivolous like treating yourself to a daily coffee at the cafe...

I mean that it is spending that literally adds no extra value to your life.

These types of expenses should infuriate you and you should ensure that you are never guilty of them!

1. Paying a higher home loan interest rate than you need to
   

   Did you know that if you have a $1m home loan, and the rate is only 0.5% higher than it's peers, this could be costing you $5,000 a year!

   
   

   This makes reviewing your home loan interest rate with a mortgage broker a non-negotiable every 12 months, because banks often charge a loyalty tax the longer you stay with them!

   
   

2. Paying too much for your health insurances
   

   Now that health insurances are mandated by the government to be in tiers of basic, bronze, silver and gold; it has never been easy to compare your provider against alternatives to ensure you are getting the best deal.

   
   

   You can compare online across a range of providers for each tier.

   
   

3. Having duplicate income protection policies

   
   

   Did you know that for most income protection policies, the maximum amount you can be paid is 70% of your salary per annum. This means that even if you have a policy above the 70% or multiple policies which in total are above 70% - you are literally paying the insurer extra premiums for something you can't claim on!

   
   

   Speak with a Financial Planner if you need help with your life insurances.
   

4. Subscription & membership services
   

   It is fine to have streaming subscriptions and memberships to gyms and other organisations. However, it is not ok to have them and not use them! I'm not sure whether it is worse if this occurs because people forget or because they are too disorganised to cancel them, but either way it could be costing you hundreds extra a year for something you don't use!
   

   You should make sure that you review your CC / bank statement every month to identify any of these types of expenses, and cancel them.
   

5. Credit card or BNPL interest

   
   

   If you are going to use a Credit Card, you need to absolutely make sure you pay it off in full each month. Credit card interest is extremely costly averaging around 18% per annum!

   
   

   If you are unable to pay off your credit card each month either due to not having the cashflow discipline or because you forget - it is better to cut them up and get rid of them. The interest you will end up paying will be far more costly than the travel points you may receive.

By not paying enough attention, you could be leaking thousands of dollars a year in expenses that provide you no value! Think about all the things you could be doing with that money instead, and take action!