Find out how to save money every day and make a savings plan to stay on track.

Separate and automate your savings

An online savings account is a great way to grow your money faster. Unlike a transaction account, you can’t spend money directly from a savings account. So it's harder to dip into your savings.

Automate your savings

Transfer part of your pay into your savings account. Ask your employer to do this for you, or set up a transfer from your transaction account. This way, you're saving without having to think about it.

Round-up transactions

Some savings accounts or apps let you round-up your daily spending to the nearest $1 or $5. The change then goes into your savings account.

For example, James buys a coffee before work each morning:

• The coffee costs $4.50.
• His transaction account is charged $5.
• 50 cents goes into his online savings account.

This adds $10 a month to his savings.

Look for ways to reduce spending

Look at your expenses to see what you can change or where you could get a better deal. It may surprise you how little things add up.

Find quick wins

Go through your bank or credit card statements for the last two months. Look for anything that isn't essential. This could be things like subscriptions or memberships you don't use much.

Reduce your grocery bills

To reduce your grocery bills:

• Plan ahead – plan meals weekly, including lunches and snacks. Check your pantry, fridge and freezer. Make a shopping list and only buy what you need.
• Meal prep – prepare meals or ingredients in advance. Freeze extras for later.
• Shop online – stick to your list and see what you're spending as you go. Click and collect to avoid a delivery fee.
• Buy on special – look for cheaper brands. Frozen vegetables are nutritious and may cost less than fresh.
• Compare unit prices - check the unit price (for example, the price per 100g) under the main price. Then compare the price and value of similar products.
• Go seasonal – save by buying fruit and vegetables in season, shop at your local fresh market or grocer.
• Eat less meat – try to buy meat when marked down at end of day. Or go to your local butcher. Plan some meat-free meals.
• Buy in bulk – buy staples (like rice, oats, flour) when marked down. Or buy bulk amounts with your neighbours or friends.
• Grow it yourself – get your family involved in making a herb or vegetable garden together.

Reduce your electricity bills

To reduce your electricity consumption and your bill:

• Heating and cooling – only heat or cool the room you're using. Open or close blinds to help control the temperature inside. Adjust your air conditioner to an energy-efficient setting. Block draughts to avoid leaking heat (for example, put a door snake against the door).
• Laundry – run your washing machine with a full load. Use cold water in your machine where possible.
• Appliances – use energy-efficient appliances or lights, if you can. Try to use appliances outside peak times when tariffs are lower (check your bill to see when it's cheaper).
• Turn off when not in use – turn off 'vampire appliances' at the wall, to avoid wasting energy. These include gaming consoles, anything with 'standby mode', and phones at full charge.

Swap to cheaper options

• Gym memberships – look for no-cost classes or running groups in your local area. Or try free online workout videos or fitness challenges.
• Streaming services – choose one and cancel the rest. Use free streaming channels or apps.
• Food delivery – try creating a take-out meal yourself at a lower cost.
• Eating out – instead of eating at a restaurant, have a picnic or BBQ at the beach, park or someone's house.
• Holidays – consider holidays with no air travel, like camping or day trips from home.
• Transport – try car-pooling or ride your bike instead of taking public transport.

Shop around for better deals

• Electricity and gas – compare energy suppliers to get the best deal. Use the Government's Energy Made Easy website. Or Victorian Energy Compare, if you're in Victoria.
• Insurance – when it's time to renew, compare premiums with other providers. See if your insurer will match a quote from another provider. Ask for a discount when you group your policies (like car and home). For tips, see choosing car insurance or home insurance.
• Internet and phone – review your monthly usage over a 12-month period and find a plan that suits your needs. You could be paying for more than you use, so look for cheaper options. Ask your provider to give you a better deal to stay.

Have a savings plan

The secret to saving is to start early and save often. Create a savings plan so you can manage your money and stick to your goal.

Know where your money is going

Have a clear picture of your regular expenses and spending habits. This helps you see where you can cut back and save. For tips, see track your spending.

Start a budget

Once you know how you're spending your money, you can set a realistic budget. Your budget will help you to stay on track, review your progress and reach your money goals sooner.

To get started, see how to do a budget.

Set a savings goal

Setting a savings goal helps you stay focused. It doesn't matter how big or small your goal is, work out how much money you need and make a start.

Pay off some debt

If you can, make extra repayments towards any credit card debt or loans you have. Paying off your debts sooner can save you thousands in interest.

For tips on how to prioritise and manage debt, see get debt under control.