David Koch’s three tips to weather the storm of coronavirus this winter: How a few changes could drastically lower your cost of living
- Finance expert David Koch has revealed his three foolproof tips to save money
- Koch said the first step to saving cash is being ‘power wise’ particularly in winter
- He said to replace light bulbs with energy-efficient compact fluorescent ones
- Koch warned Australians against automatically renewing an insurance policy
- He said having home and car insurance under one provider will cut premiums
- He also said interest rates should be below three per cent for mortgages
David Koch has share his three favourite methods to save money this winter, from using less electricity to renegotiating bank loans.
The Sunrise host said the first step to saving cash is being ‘power wise’ – particularly in the colder months.
Koch, a renowned financial commentator, urged Australians to replace light bulbs with energy-efficient compact fluorescent ones.
David Koch (right, with Sam Armytage) has revealed his three foolproof tips to save money this winter, from using less electricity to renegotiating bank loans
Koch said having more than one fridge is flushing ‘money down the drain’. Pictured with Sunrise cohosts Natalie Barr, Samantha Armytage and Mark Beretta
He suggested ditching electric heaters for gas ones, which are cheaper to run.
‘Better yet, minimise use of your heater by closing doors, covering draughts and putting on more clothes,’ Koch wrote in the Daily Telegraph on Monday.
Koch said having more than one fridge is flushing ‘money down the drain’.
He also revealed switching off appliances at the power point rather than leaving them on standby can save a household over $100 a year.
‘Hot water accounts for about one-third of your household energy use. Change your water habits to use it in smaller amounts, and less often,’ he said.
David Koch’s three tips to save money
1. Be power wise – ditch electric heaters, minimise the use of heating, and change inefficient light bulbs
2. Never automatically renew an insurance policy
3. Renegotiate bank loans
Koch’s second tip is to never automatically renew an insurance policy, and do research to find the best deal.
The author of ‘Kochie’s 11-Step Money Plan for Better Life’ said bringing home and car insurance together under one provider will cut premiums.
‘With home insurance, you get discounts by installing deadlocks and smoke alarms. For car insurance, think about raising your excess to bring down premiums, and take advantage of no claim bonuses,’ he said.
Koch also suggested to always pay upfront and in full rather than monthly.
The final step in saving money over winter is to renegotiate bank loans.
Koch said interest rates should be below three per cent for home loan mortgages.
‘If it’s not, ring the bank now and ask for a discount to get that rate into the 2 per cents,’ he said.
The 64-year-old also urged Australians to assess if they’re paying high interest rates for credit card benefits they don’t need.
Last November Koch gave sage advice to cash-strapped Aussies on saving money all year round.
He encouraged his Channel 7 listeners to take a look at their income and outgoings, and ask themselves the following questions.
‘Are you spending more than you earn? Do you use credit for everyday expenses? Are you only paying the minimum off your credit card each month?’ he said.
If you’ve answered ‘yes’ to any of these questions, then you have some serious financial changes to make.
Koch said keeping track of spending is paramount in gaining financial freedom.
‘Use it as a wake-up call to start living within your means. Ditch credit and only use cash,’ he said.
The finance expert also recommended paying off debts with the highest interest rate first.
‘Contribute to an emergency fund for unexpected bills, use anything that’s left to pay down debts like your credit card bill,’ he said.
‘Credit cards charge up to 20 per cent interest so start there. With interest rates so low right now, your home loan is probably your cheapest bet.
‘Pay off all your bad debts like credit cards and personal loans before you think about saving or investing.’
Koch said bringing home and car insurance together under one provider will cut premiums. Pictured with Sunrise co-host Natalie Barr