This is the one huge ‘lazy’ mistake Aussies are making with their money – and spending just one hour fixing it could make you an extra $3,000
Many Australians miss out on thousands of dollars every year without realizing it, but there is a quick and easy solution.
The term “lazy tax” refers to when someone pays more than necessary for a service, such as insurance, mortgage rates, cell phone charges and mortgage lender fees.
By carefully switching providers or canceling subscriptions, Aussies can inject money back into their wallets within 60 minutes.
Sydney financial guru Queenie Tan swears by this tactic and has used it herself to save money.
“Personally, I go through all my providers every year to make sure they are competitive, and if they aren’t, I call them up and negotiate a discount,” Queenie told FEMAIL.
Sydney financial guru Queenie Tan (pictured) described lazy tax as ‘the price you pay when you don’t check your plans to make sure they are still competitive’
Queenie sifts through all her providers every year to make sure she and her fiancé Pablo Bizzini get the best deal (good)
‘They are usually happy to give a discount, but sometimes I have to switch. But it’s really worth it!’
‘The lazy tax is the price you pay for not checking your plans to make sure they are still competitive. It’s a tax I’m sure we’ve all paid at one time or another, but it’s good to be reminded so we can stay on top of it,” Queenie continued.
The 27-year-old said insurance and electricity costs tend to be the biggest contributors, followed by mortgage interest rates, phone and internet bills.
‘Not having a competitive home loan can cost much more interest! For example, if you have a mortgage of €500,000 with an interest rate of six percent, an increase in the interest rate by just one percent could cost an additional €312 per month in interest. So it really sneaks up on you!’ said Queenie.
So far this year, Queenie has saved €600 on her car insurance by switching to another provider.
‘I have also switched to a new electricity provider and adjusted it according to the time of use (so there are different rates for off-peak and off-peak hours) and because I have an electric car, I have around €100 per month saved on my electric bill,” she said.
“I also changed my internet plan earlier this year and saved another $10 a month.”
With the extra money saved, Queenie likes to split it evenly by spending half and investing the rest.
“I love investing because it is a great way to build wealth and allows me to give us more options about what we can do with that money in the future,” she added.
Insurance and electricity costs tend to be the largest contributors, followed by mortgage interest rates, high-interest savings accounts, telephone and internet bills
On Reddit, several Aussies admitted they wished they had known about the lazy tax sooner (stock image)
Several Aussies admitted they wish they had known about lazy tax sooner.
One person said he has saved $3,200 a year by simply switching providers or asking for discounts.
“I looked at all this again after paying the lazy tax for far too long. Two cars, house and contents, electricity and internet, and I’ve made about $3.2ka a year finding better options,” the Redditor wrote.
‘Also with a short telephone call, 0.64 percent was taken off the home interest. All done with a bit of lunchtime comparing and a few phone calls.”
Another Redditor estimates he saves about $1,020 every year by switching plans, canceling subscriptions and using rewards systems including Woolworths Rewards and Shopback.
A third added that it is often easier to move to a better-paying job than wait for a promotion.
“Another place I consider a lazy tax is your work. Some people just put off switching to a higher paying employer because they just feel comfortable and the idea of updating their resume and going to job interviews is a hassle, but often you can do better if you put in the effort and puts yourself in the foreground,” they say. wrote.
“A lot of people will read this and say, yeah, good idea, and then forget about it.”
