My light-bulb moment

Money talks … and so should we. In some circles talking about money is considered gauche or taboo, but it’s a belief that could be costing us a lot of moolah.

Sharing tips with friends and family on best-value products and services, cheapest home loans, savings hacks and useful money apps can be a real eyeopener and financially beneficial.

Most recently, I’ve had a closer look at my insurance and energy bills. My car insurance was up and my green slip was more than $700. When I looked into it, I found out the increase related to a minor accident I had a couple of years ago. Otherwise it would have been at least $300 cheaper a year. Unfortunately, I’d paid the amount without question over the two preceding years.

I was pleased with myself after sorting that out and slashing my bill. Until I told my partner, that is, and found that he was paying around $100 less than my newly discounted premium.

Swapping information with others can often win you the best deals – for instance, recommendations for professionals such as doctors, dentists, tradies, lawyers, financial advisers, mechanics and accountants who don’t cost the earth but provide a good service.

From now on I’m going to be more open about money affairs.

We need to stay on top of our finances – what we’re paying for utilities, insurance, professional services – and ask others what they’re paying from time to time. If they’re getting a better deal, there’s no reason why we shouldn’t be able to get a similar deal, too. And we need to check in regularly. Last year’s good deal might be this year’s rip-off.

I tap the friends I know who do their research before signing up to any providers or booking in professional services. It’s a good starting point and particularly useful if you have friends who are focused on technology, and internet and phone deals. If you’re not too tech savvy, this can be a complex area to navigate. It’s not always just about price – customer service, data caps and coverage are also important.

Then there’s the mortgage. Talking to friends and family about interest rates and finding out they’re paying a lot less can translate into savings of hundreds of dollars, if you secure a similar deal.

As an aside, our December/January Best of the Best issue will prove to be the best buddy of them all when it comes to helping you home in on those good deals.

Another area is your investments. How much are they earning at any given time? You might be perfectly happy with the 0.5% interest, but finding out a mate has been earning more can be just the kickstart you need to reassess your investments.

Or you’ve bought shares and they’ve appreciated 20% in the past year but you find out a friend’s portfolio has appreciated more than 50%. You’ll be wanting to find out more.

Lately, we’ve found it difficult to find readers willing to be featured in Paul’s verdict. While there’s no shortage of people asking questions, it’s a different story finding those who are willing to reveal their identity when talking about money issues.

There are times, however, when it’s best to keep things to yourself. Where family members are involved, in particular. Finding out a sibling has managed to build a healthy nest egg when you’re on struggle street can lead to feelings of jealousy and cause a rift. This is especially true where parents give one child more handouts than another because they think that child needs it more. Sharing opinions on how you save money can be another area of contention. As one of the FIRE community members said in last month’s cover story (“Retire early – in your 30s, 40s or 50s”), when she has written about how she lives frugally and saves she’s faced hostility online. Still, encouraging a culture of openness around money by sharing information online – health professionals, service providers, banks, fund managers, brokers, utilities, health funds, even entertainment – can only be a good thing. Go forth loudly and share.