Cost of bills can be lowered by some good neighbourly advice

Money talk is still taboo about wages and wealth, but cost-of-living advice should be shared with friends, experts say.

A socially-distanced chat over the backyard fence or apartment balcony is the most interaction with friends that many Australians can have right now, but it can be used to cut the cost of bills.

The cost of living is not a taboo topic to talk about, unlike wages or net worth, and finance specialists say discussing bills with neighbours can be beneficial.

New research by Compare the Market found that one in five neighbours have been involved in sharing bill advice, mostly around energy, grocery, phone and internet bills.

More than four out of five people think their neighbours get a better deal on bills than they do, the research found, and almost two-thirds say they would take action if they discovered they were paying more than their neighbour.

“People have a lot to learn from their neighbours when it comes to saving money on bills given their shared circumstances,” says Compare the Market spokesman Simon Downes.

“Don’t see it as trying to outdo the Joneses but a good opportunity to share learnings and information about good deals.

“If you were paying hundreds of dollars a year more for your energy or home insurance than your immediate neighbours, wouldn’t you want to know about it?”

Compare the Market’s Simon Downes says don’t feel awkward about money discussions.

Sort My Money founder David Rankin says a neighbourly chat can be an effective way to reduce costs, not only for energy bills but also service providers such as gyms, mechanics and hairdressers.

But remember that a neighbour’s circumstances may differ from yours and affect the cost of bills, Rankin says. For example, one home may have solar power and use energy differently during peak periods.

“It is reassuring that, even in our hi-tech age, good old-fashioned word of mouth is as relevant as ever,” Rankin says.

He says it’s socially acceptable to share information about bills.

“I think people are more open than they used to be, but there’s still some unwritten rules, like you don’t go telling people how much you earn,” Rankin says.

“If somebody does that, it’s a social taboo,” he says. Sharing wage or wealth information between friends can leave one party deflated, potentially embarrassed and possibly upset.

Starting a conversation about bills might seem tricky, so try to boost your neighbour’s confidence by saying you’re concerned you are paying too much and would like their advice.

“If you give them a sob story, most people would want to help,” Rankin says.

“Nobody wants to see someone being ripped off.”

Downes says some people avoid talking about money altogether for fear of being judged or seen as a gloater, but if you know and trust your neighbour there’s no harm in sharing or seeking advice.

“You shouldn’t feel awkward opening these discussions – just build them into your casual conversations,” he says.

“The next time you’re chatting across the fence about the news of the day, ask your neighbour if they’ve noticed energy bills increasing, and whether they’re with a different provider.

“Remember that you’re both in the same boat. Everyone pays the same bills, so keep the subject in mind and wait for the opportunity to bring it up in conversation.”

Downes says good and bad experiences with bill providers can also be shared.

“Personal recommendations can be hugely valuable, not just when it comes to dollars and cents but also customer service,” he says.

Good neighbourly relations can potentially boost your bank balance. Picture: iStock

NEIGHBOURLY ADVICE

• Energy delivered to your home is exactly the same product as for your neighbours, but retailers’ annual charges can differ by hundreds of dollars. Share if you’re getting a good deal.

• Ask which car insurance provider your neighbour uses, as suburbs are often rated for risk by insurers.

• Energy providers and some telecommunications companies offer ‘refer a friend’ incentives or discounts.

• Listen to your neighbour’s experiences, but don’t forget to compare financial products based on your own personal circumstances.

Source: Compare the Market