With cost of living on the rise, it can be hard to stick to our usual ways to save money. So, it’s time to get a little bit savvy on your savings. Here are our top tips for how to save money for your household expenses, the future, and fun stuff!
1. Learn how to budget.
Getting on top of your finances starts with having a general understanding of where your money is going. Have you ever been unable to account for $22.30 and assumed your debit card details have been stolen (only later to remember it was in fact you who bought over $20 worth of ice cream)? Then it might be time to draw up a budget for yourself. Don’t worry, making budgeting your buddy is actually really simple. Here are a few steps to help you get started:
1. Keep track of all the money that goes in and out of your bank account over the space of a
month. Choosing the first of the month, or your payday is an easy way to begin calculating.
2. Compare what’s going in (income) and out (expenditures) of your account during this time. How much are you currently saving in a month? Are you overspending on anything (*cough* ice cream *cough*)?
3. Think like a squirrel. Did you know these clever American cuties scatter their nuts in different areas and organise them by size, taste, and nutritional value? Budgeting successfully is similar to burying your nuts (income) in a number of different nests (categories) in your tree (bank account). Using the 50/30/20 rule can be helpful here. How the rule works is each time you get paid, 50% of your income is dedicated to needs (like groceries and rent), 30% to wants (i.e. entertainment and dining out) and 20% to your savings.
No need to get out the half-glasses and pocketbook. There are a variety of great money tracking apps out there to help you do all of this digitally.
2. Create a savings account.
One of the best ways to save money is to open a dedicated savings account. It’s easier to see your savings grow when they are all nice and cosy in one place. Choosing a savings account with a high interest rate also makes it less tempting for you to dip into your money pot. As we mentioned earlier, every time you get paid, a portion of your income goes directly into this account. But much like plants that need watering, your savings will only grow if you remember to add to them. Compare our savings accounts here.
3. Set and forget.
Between bin night and your girlfriend’s mother’s cat’s birthday, you don’t need another thing on your list to remember. You can make sure you never forget to make regular contributions to your savings account by automating your payments and transfers. The same goes for any monthly bills you have. Then, give yourself a big ol’ pat on the back for being so good with money.
4. Put a spending limit on your card.
Remember when you were a kid and you were given a $5 note to spend at the corner store – no more, no less? Well, that same mentality applies to putting a daily spending limit on your card. This can prevent overspending and make you really appreciate that everlasting gobstopper.
5. Plan your meals for the week.
When it comes to saving money on your grocery shop, it’s smart to walk into the supermarket with a game plan. As the old saying goes, ‘Preparation prevents poor performance’ – and this one goes for your grocery shop too. Planning your meals for the week stops unnecessary items creeping into your trolley and stops the weeknight dinner supermarket run, so you can stay home watching Love Island instead. When planning your food for the week, opt for meals with similar ingredients. That way you’ll use everything up and avoid waste.
6. Buy seasonal fruit and vegetables.
The best way to save on groceries is to buy seasonal and local – it’s the produce that’s cheapest to grow and transport. Save the tropical fruits for summer and jump on the citrus train in the cooler months – it will taste better, and your wallet will thank you. Check out this handy Australian seasonal produce guide before your next visit to the supermarket.
7. Turn bargain hunting into a sport.
You might be staunchly loyal to one supermarket, but don’t be afraid to shop around for the best deals. Keep your eye on specials, learn the days food goes on sale and plan your shop around them. Some supermarkets have exclusive online deals you can take advantage of when you shop through their apps. Or hit the supermarkets or markets towards the end of the day when fresh stuff like bread, fruit and meat are heavily discounted to make your money go further.
8. Reconvene your spending.
Home delivery, rideshares, subscription services – we are constantly paying extra for convenience, so it’s good to assess where in your life you could put in a little more elbow grease. When shopping online, opt for click and collect where you can, and save yourself up to $10 in delivery fees. Next time you catch up with friends, plan ahead and catch public transport. Take stock of your subscriptions – do you really need five streaming services? Making these little changes can make a big difference to your bottom dollar.
9. Make sure you’re getting the best deal on your utilities.
Switching providers for cheaper gas and electricity can give your budget a good trim. Use comparison sites to see the options side by side. Some will help you make the switch to a new provider free of charge. Take advantage of discounts for paying on time too – over a whole year, they can really make a difference.
10. Be budget and planet friendly.
There are so many simple things you can do to cut costs around the house that can reduce your
carbon footprint at the same time.
• Turn off lights when you leave the room.
• Turn off appliances at the wall.
• Install a water-saving showerhead.
• Plug any draughty areas.
• Pop on some socks and a jumper instead of the heater.
• Run your washing machine and dishwasher only when they’re full.
11. Sleep on it before you splurge.
As with any decision, the old advice of ‘sleep on it’ rings true when it comes to making any ‘impulse buys’. Whether it’s a new car, a fancy hair-dryer or a tissue that Harry Styles once blew his nose on, if you consider it a big expenditure, take a couple of days to mull it over. That gives you some time to decide if you really want it and also suss out if there is a better deal out there.
12. Reach out for financial hardship assistance.
Life can throw unexpected surprises at us, good and bad. Through our Hardship Assistance Policy, we may be able to offer assistance with any difficulties you’re experiencing.
If you’ve lost your job, suffered an illness or injury, or been affected by a natural disaster, we want to help you manage your financial position.
Speak to one of our team members on the following numbers
1300 500 520 Monday to Friday 8:30am – 5pm. Or after hours on 13 15 63.
Watch your savings stack up with SaveME.
With no monthly fees or confusing criteria, you’ll be crushing your savings goals sooner.
This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.