CBA boss Matt Comyn says just over 60 per cent of the impact of the 12 rate rises to date has flowed through the Australian economy so far, so for the everyday Aussie, now is the time to get smarter with budgeting. 

We’ve already seen many Aussies are already looking at slashing discretionary spending first, such as dining out or non-essential shopping. According to some of the latest data from the ABS, spending on clothing and footwear, for example, has dropped 3.4 per cent in the past year, with spending on discretionary goods and services being 0.6 per cent lower than in May last year.

One common example of cost-cutting is reviewing subscription services which quickly add up over time. Considering 78 per cent of Aussie households have at least one subscription and, on average, each household has 4.3 platform subscriptions, (according to Telsyte), pausing a subscription service or two for a few months could help keep a few hundred in the bank. If Netflix is a non-negotiable, you may even consider switching to their cheaper ad-supported plan. 

It’s also worthwhile to consider refinancing options. Almost a million Aussie home loans on fixed rates will be expiring over the next few months, which will shock many households. Having open and honest conversations with your lender or broker is the first place to start, as they might be able to provide different options or solutions outside of the Big 4 you hadn’t previously considered.

Despite these challenging times, it’s key to remember that the situation is not insurmountable. Like some of the banks, we’re anticipating just one more hike from the RBA this year.  With forward planning, sound financial strategies, and the right support, Aussies can make it through the rest of the year in one piece.