Save a little, spend big
Dollar-saving hacks to get you back in the black
Practice these 10 budget trimmers and, within one year, two, or five, you’ll have a tidy sum to splash about.
Mindful shopping
People who avoid impulsive shopping spend up to 23% less on grocery bills, according to research from the University of Pennsylvania. Make a list and stick to it, and consider shopping at closing time, when much of the produce is discounted.
Reduce your utilities
Getting the best deal on utilities used to be time consuming but these days it’s as simple as visiting consumer sites like www.youcompare.com.au, www.energywatch.com.au or www.iselect.com.au. Some consumers report savings in excess of $800 annually by switching providers.
Live fee-free
The Reserve Bank says the average Australian pays a maddening $515 in bank fees. Reduce fees by paying credit cards and loans on time, avoiding late fees; withdraw cash at your bank’s own ATM or when using Eftpos to avoid hefty withdrawal fees; and ensure you have funds to cover automatic payments.
Cut one everyday expense
Choose one daily expense to say goodbye to – a takeaway coffee, a magazine, or an afternoon snack. The pain of missing your favourite treat will be dulled when you realise you can save up to $1500 a year.
Make extra money
The best way to save more is to make more, right? These days, earning more is easier than ever with the burgeoning sharing economy: try renting out a spare room through Airbnb, become a weekend Uber driver, or become a local tour guide with www.toursbylocals.com.
Travel light
Travel is a huge expense in regional areas where jumping on a bus isn’t always a viable option. Try using a ride sharing app to such as Northern Rivers Carpool (www.nrcarpool.org). Find the best fuel prices with apps such as NRMA and www.fuelmap.com.au, make sure you combine all your errands that require driving in one trip, and slow things down a little – the Department of the Environment advises that at 110kmh your car uses up to 25% more fuel than it would cruising at 90kmh.
Review automatic payments
Regular payments such as Spotify and Netflix may seem insignificant but according to David Bach, author of Finish Rich, they represent big savings. “The fastest way to cut annual expenses is to cut back on these,” says Bach, so go through your statements and eliminate one monthly contract.
Fine-tune your tax
You may be paying more tax than you need to, especially if you’re doing your own returns. The cost of a taxation specialist is generally returned in savings and refunds. Learn exactly what you can claim and record everything in a tax diary, with receipts. The extra work will pay off.
Get a better rate
Consolidating your debts will result in significant repayment savings. Review your mortgage, personal loans and credit cards and seek quotes on consolidating. If you have credit card debt, consider taking a 0% interest deal to move to another institution.
Buy second hand
Thanks to the retro and vintage trends, there are excellent bargains to be had in everything from furniture to appliances to fashion. Facebook pages such as Buy and Sell connect you with sellers in your region or try Gumtree. A purchase like a sofa can be as little as $300 second hand, as opposed to $3000 new.