Save $16,000
Make financial adviser and author HELEN BAKER’S small changes to have a big impact on your bank balance in just one year!
In the face of rising living costs, high levels of debt and mortgage stress, many Australians are finding it difficult to save money. But even on an average income, with a little patience and perseverance, it is possible. Wondering where to start? Here are 16 small changes you can make that can save you more than $16,000 a year…
1 MAKE REVISIONS
Review your insurances, utility bills, subscriptions and memberships. Let them know you’re looking for a better deal. You could save $1000 a year.
2 HOME LOAN CHECK
If your home loan is $500,000 and interest rate is 4.5 per cent, you pay $412,034 in interest over 30 years. Reduce it by 0.25 per cent and you’ll save $26,452 over the loan period. That’s $1000 a year.
3 PAY EARLY
Pay your rates and car registration in the discount period. You could save $250 a year on rates and around $70 on registration.
4 CHANGE OF PLANS
Do you really need the $160 per month mobile phone plan you signed up for? Can you make do with the $80 plan instead? You could save $960 a year by switching.
5 DON’T GET INTO DEBT
Pay personal debts like credit cards or car loans as quickly as possible to minimise interest. This could lead to savings of approximately $1500 a year.
6 POINTS PLAY
Don’t fall into the credit card points trap. Points are not free. Switch to a lower rate card with no annual fee and save up to $250 a year, depending on the card.
7 BE SALE SAVVY
Consider buying that beautiful winter coat or swimsuit in the season changeover. Save around $750 a year.
8 BUY GIFTS SOONER
Purchase Christmas and birthday gifts during the year when they’re on sale and put them aside for later. The possible savings? About $500.
9 BYE BYE CIGARETTES
Don’t smoke. Kicking the habit will save you $10,000. It will also save you around $2500 in life and income protection insurance premiums.
10 BUY BEAUTY ONLINE
Buy cosmetics online as prices are often around 20 per cent cheaper. That’s a savings potential of $250 a year.
11 FOOD FOR THOUGHT
Don’t grocery shop when you’re hungry! You’re likely to impulse buy on an empty stomach. This can save you $1000 a year. Also, instead of paying $3 at the shop each day for a can of soft drink, buy a carton from the supermarket and pop them in the fridge at work or home. This trick saves about $912 a year.
12 AXE THE COSTLY APPS...
Cancel costly apps that you no longer use. This can put $200 back in your pocket a year, depending on how many apps you use and how much they cost each month.
13 ...FOR THE SAVINGS HELPERS
Use an app that rounds up your card purchases to the nearest dollar and puts that into your home loan. You can save around $100 a month doing this.
14 BYO COFFEE CUP
Take your own cup to a coffee shop that offers a discount for using a reusable cup – you’ll help the environment, too. This can save you $146 a year.
15 DON’T DINE OUT
Bring leftovers instead of buying lunch, even if it’s just twice a week. DIY dining can keep $1560 per year in your pocket.
16 MAKE THE SACRIFICE
Salary sacrifice just $20 per week into superannuation. It’s a tax saving of around $239 a year and it could make you an extra $3500 by retirement.