Busting Your Bills

Forty years ago, if you wanted to change TV channels, you had to move your bum instead of your thumb.

And if someone suggested you’d one day pay for streams of content, you would’ve laughed at them while hugging your precious VHS recorder.

Now look at us.

Most households have at least one streaming subscription if not a few: Netflix, Amazon, Foxtel, YouTube…

Why?

Because we live in the age of subscriptions.

And subscriptions work for two simple reasons:

• They’re painless. $9.90 or $19.90 a month is easy to ignore.
• They’re automatic. Direct debits mean no thinking, no friction.

If we don’t feel the pain, we keep paying. Often for stuff we barely use.

But while we were busy binge-watching recently, something else crept in on autopilot…

On July 1, households and small businesses copped another nationwide power hike — despite a grid full of promises they’d come down.

Spoiler alert: they won’t.

Why? Because AGL just bought two of its competitors.

And as usual, the ACCC and energy regulators stood around like an empty power station and did nothing.

They gave AGL a big green light and then looked the other way.

But here’s the good news: There are two simple ways to help ease the pain…

Suggestion #1: Treat Your Bills Like Subscriptions

Instead of getting walloped every quarter, smooth things out with smaller weekly payments.

Let’s say your power bill averages $500 every three months.

Break it down:

$500 ÷ 13 weeks = $38 pw

Set up a $40 automatic weekly payment (round up to stay ahead).

Or go one step further and open a separate “Bill Buster” bank account.

Each month, sweep in enough money to cover your big, lumpy expenses — power, rego, school fees, insurance, etc.

It’s one less thing to worry about and it feels pretty good finishing a quarter in credit instead of a crisis.

I’ve been doing this for years and it makes a big difference.

But this idea isn’t new. Our parents grew up this way.

They’d squirrel away a few bucks each week into jam jars and envelopes.

And if you were of good character, your local grocer and servo would even take your cheque!

The goal is simple: Get ahead of your bills… and stay there.

Suggestion #2: Be an Owner, Not Just a Consumer

If you’re already paying the power companies, why not own a slice?

Essential services like energy, banks, telcos, supermarkets can be excellent investments.

Why? Because they’re staples. They sell products we consume every day.

Which means two things:

They’re recession-proof (people still need power and groceries), and

They have serious pricing power during inflation (they just pass the costs onto you!).

And if you’ve got a green thumb and a grudge against fossil fuels, no worries.

Companies like Origin Energy are investing heavily in renewable tech.

That means a win for shareholders, customers, and yes… even the planet.

When the price is right, owning quality companies in these sectors can turn your bill pain into passive income.

But right now, the price isn’t right.

This market is like subscribing to Foxtel – overpriced, underwhelming and full of repeats.

Have a great weekend,

Adam

Back Paddock – a parent is only as happy as their unhappiest child.