How to cut your household bills in New Zealand

Most households can save hundreds of dollars a year without giving anything up, simply by checking that they're on the right plan and comparing prices once a year. Here's where to look first.

Power

Power is often one of the biggest bills, and plans vary a lot between retailers and between low-user and standard-user options. The free, independent comparison site Powerswitch (powerswitch.org.nz), run by Consumer NZ, compares the plans available at your address using your actual usage.

• Run a comparison once a year, or whenever your retailer changes its prices.
• Check whether you're on a low-user or standard-user plan. Which one is cheaper depends on how much power you use, and the right choice can change if your household changes.
• Ask your current retailer to match a better offer before you switch. Sometimes they will.
• Look for prompt-payment discounts, and make sure you actually get them by paying on time.
• Use a heat pump efficiently: clean the filters regularly and set it to a comfortable 18 to 21°C rather than higher.

Insurance

Insurers often increase premiums at renewal, and customers who stay put can end up paying more than new customers. Reviewing your cover every year is one of the most valuable money habits there is.

• Get at least two other quotes before each renewal for car, house and contents insurance.
• Consider a higher excess if you could afford to pay it in an emergency. It usually lowers the premium noticeably.
• Ask about multi-policy discounts for having car, house and contents with the same insurer.
• Check that your sum insured is right: neither too low to rebuild or replace, nor higher than you need.
• Avoid doubling up. For example, check whether you already have travel cover through a credit card.
• Paying annually instead of monthly can be cheaper, because some insurers add a fee for monthly payments.

For health and life insurance, be careful about cancelling and re-applying elsewhere: pre-existing conditions may not be covered by a new policy. A licensed financial adviser can help you compare.

Internet and mobile

Broadband and mobile plans get cheaper over time, but existing customers often stay on older, more expensive plans.

• Compare broadband plans at your address on Broadband Compare (broadbandcompare.co.nz).
• Check how much data you actually use. Many people pay for far more mobile data than they need.
• Look at bundling broadband with power or mobile for a discount, but compare the total cost, not just the discount.
• Prepay mobile plans can be cheaper than on-account plans for light users.

Groceries

Groceries are a need, but most households can trim 10% or more with a few habits:

• Plan the week's meals and shop from a list.
• Compare unit prices (per kilogram or per 100 g) on the shelf label rather than the pack price.
• Try home brands for staples such as flour, rice, tinned food and cleaning products.
• Do the big shop at the cheapest supermarket that's convenient for you, and top up locally only when needed.
• Use up what's in the fridge before buying more. Wasted food is wasted money.

Fuel

• Fuel prices can vary a lot between stations in the same area. The Gaspy app shows prices reported by other drivers.
• Use supermarket fuel discount vouchers and fuel loyalty programmes, if you would shop there anyway.
• Keep your tyres at the right pressure and take off roof racks when you're not using them.
• Combine errands into one trip.

Bank fees and interest

Account fees, overdraft interest, late fees and credit card interest buy you nothing. Ask your bank about fee-free accounts, pay your credit card balance in full by automatic payment, and set up low-balance alerts so you're never caught out.

Takeaways and food delivery

Delivery apps add delivery and service fees, and menu prices on apps are often higher than in store. Picking up your order instead of having it delivered, or choosing one takeaway night a week, can save a surprising amount over a year.

Make a yearly bill check-up

Put a reminder in your calendar once a year to check power, insurance, internet, mobile and bank fees. An afternoon of comparing can easily be worth several hundred dollars.

See which bills cost you the most →