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Simple ways to save money

Make a big difference with small changes

Page reading time: 5 minutes

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

No matter whether you’re a highly organised saver or whether saving money feels like an impossible task, it’s worth doing an annual sense check of your money habits to make sure they’re working for you.

Here’s a suggested step-by-step plan.

Step 1: Know where your money is going

Before you work out how to save, it’s good to know what your money gets spent on.

So get ready to download your bank transactions for the past year and go through them line by line.

See track your spending for tips on how to do this and use our budget planner to put it all together.

Step 2: Look for ways to save

Some savings tips mean making lifestyle changes – but some don’t. Let’s look at the easy wins first.

Easy wins

There are some things that you have to spend money on – but you might be able to make them cheaper. Such as:

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.

If you don't want to change providers, phone your current energy provider and ask if they have a cheaper contract that would match your usage. 

You can also try some behavioural changes, like: 

Insurance

The cost of insurance policies can vary by hundreds of dollars a year.

Whether it's home or contents insurance, car insurance, health insurance, life insurance or some other type of insurance, compare the costs.

Consider the different types of insurance you might have, that you can shop around for.

Before it’s time to renew a policy, get some online quotes from other insurance providers. You can then phone your current insurer to see if they’ll match the cost.

Ask for a discount when you group your policies (like car and home).

Look at more than price when you’re comparing insurance. It’s important to know what you’re covered for. For tips, see how to choose insurance.

Internet and phone

Check 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.

Learn more about choosing a phone plan.

Debt

Whether you have a credit card balance, a personal loan, or some other form of debt, you’re probably paying interest. 

Check the interest rate you’re paying on any loans/debt and see if you can negotiate a cheaper rate. Use our personal loan calculator to see how much you could save with a lower interest rate.

And 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.

Other ways to save 

Other ways to save might mean changing your habits. 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.

Forgotten costs

Go through your bank or credit card statements carefully. Look for any costs that you’d forgotten about. This could be things like subscriptions or memberships you don't use much and don’t really need.

Grocery costs

Groceries are one of the biggest household costs. Savings tips include:

Extra costs

Also look for things that, when you add them up, are costing more than you’d realised. It could be things like takeaway, or streaming services, or even clothes.

There’s nothing wrong with spending money on things you enjoy. It’s just good to be realistic about the total cost, so you can prioritise.

Whatever you spend your money on, pause and ask yourself if you could get the same result, cheaper.

Step 3: Document your budget

Now that you’ve found some quick win ways to save, use our budget planner again to put it in writing. This will help you work out how much you can and want to save each fortnight/month.

Step 4: 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.

Step 5: 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. Some suggestions for managing your savings habits are: 

Separate your savings

Keeping your savings in a different account to your spending helps you keep track of it.

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:

This adds $10 a month to his savings.