Diana Clement: Take a razor to your bills

All bills can be cut. There's always wriggle room. It's the "how" that doesn't always strike us between the eyes unless we address the problem with fresh thinking.

Everyone's different and the number one bill to cut is the one that will save you the most. In my case that's definitely food, followed by clothing and petrol.

Sometimes the bills that need cutting most are the ones we think are fixed, such as credit card interest and bank fees. The reality is, they can be slashed with behaviour changes.

The absolute starting point in cutting bills must be "how can I make this change work?", rather than a knee-jerk reaction that it's "impossible" or automatically looking for reasons something won't work - as humans naturally do.

Save on the fashion bill
Budget adviser Kate Henderson of the New Zealand Federation of Family Budgeting Services says most people could simply stop buying clothes for three years if they had to.

I hear more and more conversations by people who refuse to buy new clothing in response to the rise of "fast fashion" and its devastating effect on the environment and workers.

If you want to spend less but really really truly need one item for work then go to SaveMart, hospice shops and other higher-end second-hand stores, which have clothes from all brands and sizes between them.

Great fresh thinking when it comes to clothing is to have a "buy nothing year" and you'll realise you don't "need" whatever it was you were endlessly trawling the high street for in the past.

Save on the food bill
I stand by the argument that most middle New Zealanders could halve this bill and be healthier for it.

Thanks to a member of our household becoming a vegan, I've learned I could cut out meat, fish, dairy products, packaged food, 90 per cent of cleaning products, lotions, potions, all bought drinks including tea, coffee and wine, and eat budget brown rice instead of fancy super grains. And that's just getting started.

Save on energy costs
Check out the Energywise website for tips such as lowering your heating thermostats, insulating, turning appliances off at the wall when not in use, and lowering the hot water thermostat to name a few.

Fresh thinking from Henderson is to shop around, find a better deal and your existing provider might well give you a couple of hundred dollars credit to stay.

Spend less on petrol
I ferry my children around and my vehicle sits in the supermarket carpark way too often for someone who owns two legs and a bicycle.

Every time we brake we waste the fuel spent speeding up. So get in the car less, pump up your tyres and adopt good driving habits. And shop around for cheaper petrol.

Cut the credit card interest bill
If ever there was a financial con draining Kiwis' finances, it's credit cards and personal loans.

I'm not talking about one bank charging 19.99 per cent and another 12 per cent, although shopping around can help. The issue is Kiwis have been conned into believing it's normal to pay interest on day-to-day purchases and carry a balance.

Whatever is being loaded onto credit could be costing you the chance of homeownership in future or a comfortable retirement. Instead you're lining the pockets of banks. Consider not buying it in the first place, or the Bangernomics approach rather than upgrading.

Entertainment
We conveniently hide our entertainment spending from ourselves. It isn't just about going out: it's what we do at home as well.

Look in your supermarket trolley - alcohol and fancy-packaged food should be included in your entertainment spend to put it into perspective. Add your gym membership and any television viewing packages such as Netflix and Sky TV.
Henderson includes cigarettes and Lotto tickets in this list. We all have to entertain ourselves. If we're honest about what we're spending, however, the bill can be cut.

Other bills that need a dose of fresh thinking include mobile phone bills, internet, electronics (an iPhone 7 isn't one of life's necessities), car/house/contents insurance, (use a broker so you're not conned into replacing good with lesser cover), and any other recurring expenditure.

If you need drastic short-term relief from bills you can apply under the hardship provisions of the Credit Contracts and Consumer Finance Act for a variation of credit contracts, says Henderson. Beware, however, that this is just spreading the cost out over a longer period meaning you probably pay more interest in the long run.