Top Money-Saving Tips For The New Year

The new year is a great time to start fresh and save some money. Here are some top tips to help you get started. Whether you're looking to save on groceries, entertainment, or utilities, there are many ways to cut costs. So put your savings plan into action and stick to it this year!

Saving money can seem difficult, but you can start putting away cash for your future with a few simple changes. Check out these top tips for saving money and putting more money in your pocket. Whether you're looking to save for a vacation or want to have a little extra padding in your bank account, these tips will help.

Do you want to save money but don't know where to start? Or maybe you've tried to save money in the past but haven't had much success. Don't worry—you're not alone. Saving money can be tricky, but it's not impossible. This blog post will share some of our top tips for saving money. We hope they help you reach your financial goals!

There are many ways to save money, but not everyone knows about them. This blog post will share some of the best tips for saving money. Whether you are looking to save a few dollars here and there or want to create a more substantial savings account, these tips will help you get started.

So read on and get started on saving your hard-earned cash!

Set Up A Budget

A budget should be the foundation of any savings strategy. Creating a budget allows you to organise your spending into priorities and strike a better balance between spending and saving over the course of an entire year.

You may figure out your recurring costs like rent or a mortgage, transportation, insurance, and electricity by looking at your credit card statements, bills, and bank statements, as well as the receipts you have saved.

After that, you deduct these costs from your income, which might come from a variety of sources like your full- or part-time job or regular labour, pension, government benefits, payments for child support, investments, and so on.

If you are spending more money than you are bringing in, you should ask yourself what expenses you may eliminate or reduce.

Consider which of your expenses are essential to your day-to-day life and which are luxuries or things you could maybe do without if you were in a position where you needed to cut back on spending in order to make room for other financial obligations.

It is highly recommended that you revise your budget at least once per year. Or more frequently if major changes have occurred in your situation (e.g. getting or losing a job, having a baby).

If you are spending more money than you are bringing in, you should ask yourself what expenses you may eliminate or reduce.

Best Budgeting Advice

1. Give yourself an allowance

Spending less is never enjoyable. And when you do work for a living, you will want to reward yourself with part of the money that you have worked so hard to achieve.

Make sure that your financial plan includes some "fun money" for you to spend. This is a predetermined sum of money that you are free to spend on anything at all without experiencing any feelings of remorse.

2. Set up procedures to automatically handle your finances

Set up an automatic transfer from your primary bank account to your savings account, for instance, if one of your financial priorities is to increase the amount of money in your savings account for unexpected expenses. You won't be able to see the money, and when something is out of sight, it's easier to forget about it.

When you utilise automation to manage your money, it can make it easier to stay on a budget because your spending and savings can be programmed to run on autopilot, which can reduce the amount of stress associated with sticking to a budget.

3. Shop around to find better offers 

Perhaps it is the case that you cannot function without a home internet connection. However, you might be able to save money by comparing the prices offered by a number of various internet service providers.

Take a look at the expenses you've been tracking to determine where you might be able to discover a more cost-effective solution. You would be amazed at how much money you may save by switching providers or plans; however, you should make sure that you are still receiving a decent deal for the money that you are spending.

4. Seeking assistance with debt issues

Are you having trouble paying off your debts?

You're not alone. The average Australian household carries one of the highest levels of personal debt anywhere in the world.

Your financial health and welfare can suffer greatly as a result of debt, and it will also make it more difficult to achieve your financial goals.

When you have a lot of debt, you don't have the flexibility to make your own financial decisions, and even a small change in your income can have a catastrophic effect on your family's ability to pay the bills.

Consult with financial experts for guidance if you're having trouble managing your debt.

Monitor Your Spending

It is possible for us to slip into the trap of believing that spending money on significant things is what gets us into difficulty, while in reality, it is frequently the insignificant things that wind up costing us more.

Because of this, it is essential to maintain a record of your day-to-day expenditure to ensure that you do not spend more than you earn. For instance, your bank statement will inform you of the sum of money that is being deposited into your account as well as the amount that is being withdrawn from it. You will then be able to compare it to your budget to determine whether or not you are remaining true to it. After that, you'll be able to find places where you can cut costs.

The very idea of having to monitor our expenditure is enough to prevent us from making rash purchases.

Get Your Credit Card Paid Off

Given that the interest rates on credit cards in Australia can reach as high as 25 percent or even more, it is simple to understand how irresponsible usage of a credit card can make even the most modest savings objectives impossible to achieve.

It is advisable to prevent interest charges and late payment fees by paying off your credit card balance in whole and on time each month.

Setting up a direct debit payment is something that MoneySmart advises doing if you don't want to miss any of your repayments. In addition, you should make a payment that is greater than the minimum required amount because, otherwise, your overall interest costs would be significantly higher.

Canstar suggests that, if you are unable to be trusted with a credit card, you should take a page from the playbook of your grandparents: "Without credit, there is no ability to use EFTPOS. Take out the amount of cash you will need for the week and try to make it stretch."

According to Andrew Schrage, co-owner of Money Crasher Personal Finance, one creative approach to save money is to use your credit card more often. This may appear counter-intuitive considering the advice given above, but Andrew Schrage believes this is the case.

However, there is a catch: this piece of advice is only valid for individuals who are consistently prompt and complete in paying off their balances.

Find a credit card that has an excellent cash-back rewards programme, and then every few months, redeem your rewards and then deposit that amount of money into a bank account that you have specifically designated for savings purposes.

Sign Up for a Savings Plan

Savings accounts are able to offer a greater interest rate than standard transaction accounts because they limit the ways in which you can access the money you deposit.

You can deposit some or all of your discretionary income, which is the amount of money that is left over after paying for personal expenses and taxes, as well as any unexpected windfalls, into savings accounts (e.g. tax refund). You can prevent yourself from spending this money that is considered discretionary by setting up automated and scheduled transfers from your primary account (transaction account) to your savings account.

According to Kylie Travers, the Chief Executive Officer of Occasio Enterprises, which owns and maintains multiple personal finance websites, rounding down the balance of your transaction account is one approach to gather additional money for your savings account.

"Every time you check your bank account, round the balance down to the next lowest dollar amount, and send the difference to either your debt or savings," she advises.

If I signed in and saw that I had $109.35 in my account, I would get it down to $100 by moving $9.35 into my savings account and round it down to $100. (or debt, when I had it).

"This resulted in a few hundred dollars being paid off without much work some months, and I didn't miss those tiny amounts," the author says.

How to Reduce Bill Costs

1. Avoid the loyalty penalty

To prevent having to pay the so-called "loyalty penalty," you should look about for a better offer before continuing to do business with a particular supplier if you have been with them for a considerable amount of time. It is also a good idea to enquire about what your existing service provider may do to retain your business.

Do some investigation before the time comes for the policy's automatic renewal. It is unlikely that the bargain you will receive if you are an existing customer will be as beneficial to you as the deal you will receive if you are a new customer.

2. Health insurance

You may find out if purchasing a policy would help you save money on taxes by going to the website doineedhealthinsurance.com.au. If this is the case, you should also consider paying a higher deductible on your hospital insurance coverage. Doing so can reduce your overall premium costs by the same amount that the deductible would save you.

It is unlikely that the bargain you will receive if you are an existing customer will be as beneficial to you as the deal you will receive if you are a new customer.

3. Car insurance

You can save hundreds of dollars on compulsory third party (CTP) insurance by using services such as the Green Slip Price Check (NSW), the Motor Accident Insurance Commission's CTP Premium Calculator (Queensland), the ACT Treasury website (ACT), and the NT Government's information on registration fees. These services are all located in their respective states (CTP costs are included in the rego fee in the NT).

If you have a claim that is less than one thousand dollars, you might want to reconsider filing it via your insurance policy because doing so can raise your premiums. You could also consider raising your deductible in order to lower the amount of your premiums.

4. Travel insurance

Many Australians are preparing to travel within their own country this year in anticipation of future overseas excursions. It is quite doubtful that your domestic travel insurance will cover you for COVID-19 or other related travel bans.

Do you remember the wildfires that forced us to cancel our summer vacations the year before? The forecast for this year from the Australian Bureau of Meteorology calls for a high risk of flooding.

You can get a lot of bang for your buck out of domestic travel insurance if you've paid a lot for your trip to Australia, if you're going to be renting a car, or if you're going to be bringing athletic equipment with you. However, if you have secured a low-cost airfare and inexpensive accommodations, it may be in your best interest to file a claim with the airline and the housing provider in the event that something goes wrong.

5. Energy

Find a new energy provider to take advantage of better pricing by doing some comparison shopping. Using solar energy can also help you save money on your monthly energy costs. Not sure if going solar is the right choice for you? Take a look at our guide that outlines the first four stages to getting started with solar energy.

The Solar Estimator will provide you with an estimate of the cost of installing solar panels on your home and assist you in obtaining estimates from reputable solar installation companies.

6. Banking

Avoid paying more money for fees if at all possible. If you call your credit card business just before the annual fee is due, and threaten to cancel the card if the fee is not waived, then they may do so. Switch to a credit card with a low interest rate if you are now paying a high rate of interest.

Your credit card company can waive the yearly charge if you call them right before it's due and threaten to cancel your account.

7. Fuel

Do your research on when and where to fill up your vehicle, and check out websites like MotorMouth, which will inform you which service stations currently offer the lowest rates. This can help you avoid the browser blues and save you money.

8. Telco

If you have been a loyal client for a long time, you may be able to save money by switching to a different provider for your phone or internet service. Check how much data you've been using before signing up for a new plan; it's possible that you won't require as much as you believe you will.

In addition, if you are considering moving to the NBN, you should investigate some of the more local service providers to determine whether or not they provide a risk-free trial of their products and services. Additionally, speed is important, and typically a 50/20 plan will suffice for smaller homes.

Concentrate on Ongoing Expenses

Although every little bit helps, the larger, more consistent expenses that you have are the best place to focus your efforts on increasing your savings.

Examine your bank statements from the previous year and make a list of everything you spent money on during that time period.

The next step is to determine how much money you may save on them by, for instance, refinancing your home loan, comparing insurance providers, and shopping around for other services.

Invest one day in sifting through everything, and you could wind up saving thousands of dollars.

Although every little bit helps, the larger, more consistent expenses that you have are the best place to focus your efforts on increasing your savings.

Your monthly energy costs could be reduced by almost half if you switch to a more affordable energy retailer. The website Energy Made Easy maintained by the Australian government allows users to compare the prices of various electricity and gas plans.

Because annual premiums for insurance can easily reach several thousand dollars, even a small discount of 10 percent can result in significant cost savings.

Constant attention is required in order to keep your fuel costs to a minimum; MotorMouth and accc.gov.au can provide you with information regarding which gas stations offer the greatest deals and which day of the week is ideal for refuelling your vehicle.

If you are satisfied with the cell and internet service providers you already use, you should inquire with them about whether or not they offer any lower plans. Regrettably, this is information that they do not always voluntarily offer to their existing consumers.

Regulate Your Impulses

Spending money is now more convenient than ever thanks to innovations such as credit cards, ATMs, and online shopping. Especially when it comes to things that we want rather than need; the degree to which we give in to temptation is often directly proportional to the amount of willpower we possess. Unfortunately, research has revealed that self-control is like to a muscle in that it can become fatigued with repeated exercise.

Ironically, the willpower of customers with lower incomes seems to be reduced the greatest when they go shopping. This is because they are forced to make challenging choices regarding their finances on a consistent basis.

It's not that those with less money have less self-control than those with more.

People who live in poverty are forced to exercise self-control and draw from their limited supply of willpower for every decision they make, even the one over whether or not to buy soap.

Canstar recommends that consumers wait at least one day before purchasing something they have their eye on, and up to one month if the item in question is a significant one that is not essential. After then, there's a good chance the impulse won't return. Another strategy for overcoming the need to make a purchase is to calculate how many hours of work are equivalent to the price of the item. If you do this, you will probably decide that the item is not worth the money.

Smooth Your Bills

Bill smoothing is a payment system that is given by utility suppliers (electricity, gas, and water) in which, rather than paying the entire bill all at once, you pay the provider fortnightly or monthly instalments instead of paying it all at once.

People living on limited incomes are protected from experiencing bill shock, going into debt, and maybe paying interest as a result of this protection.

We strongly suggest that you adopt a similar strategy with your day-to-day finances, which entails setting aside money on a consistent basis in order to pay major obligations in the future.

Bill smoothing is a payment system that is given by utility suppliers (electricity, gas, and water) in which, rather than paying the entire bill all at once, you pay the provider fortnightly or monthly instalments instead of paying it all at once.

You will be able to take advantage of discounts that are offered for paying bills and premiums all at once rather than in instalments if you save enough over time to pay for specific costs on an annual basis rather than, say, on a monthly basis.

It is recommended by MoneySmart that you calculate how much your major bills will cost for the entire year. After that, you will be able to determine how much money to set aside from each paycheck in advance.

If you set away this amount every time you are paid, you won't have to worry about not having enough money to pay for your next significant expense.

How to Cut Costs Around the House to Save Money

1. Food and groceries

• Buy cuts of beef that are on sale and prepare them in a slow cooker. You can stretch the amount of meat you buy by serving it over rice or pasta, or by adding canned beans or lentils to casseroles and stews.

• When you go to buy fruit and vegetables, make sure you check the unit pricing first; sometimes buying fruit and vegetables in pre-packaged form is more cost effective than buying them loose, and vice versa.

You can stretch the amount of meat you buy by serving it over rice or pasta, or by adding canned beans or lentils to casseroles and stews.

• Participate in a fruit and vegetable co-op and make bulk purchases at the fresh produce market that is located closest to you. Your consumption of fruits and vegetables will go up as a result, leading to savings on food that is of higher quality and that lasts longer.

• Sign up for the Aldi online newsletter to receive advance notice of the deals that will be available on Wednesdays and Saturdays.

• After 5 o'clock on Mondays, take a look at the sneak peek of the Coles catalogue to help you choose whether or not to go shopping on Tuesday or Wednesday. On Wednesday, check the catalogue at your neighbourhood Supa IGA.

• Forget about purchasing floor cleaning; research conducted in our lab has demonstrated that it is not any more effective than simply using water.

2. Laundry

If you want a good wash, you may get away with using only one-half of the suggested amount of washing powder. Also, there is no need to bother using fabric softener because it makes towels less absorbent and can weaken the clothing' ability to resist fire.

3. Appliances

Selecting appliances that are more energy-efficient will help you bring down the cost of your monthly energy bills. And if you have solar power, set the timers on your appliances so that they run when there is the most demand for electricity while you are at work.

There is not necessarily a correlation between price and performance. Nevertheless, our research frequently reveals that lower-priced goods can outperform more expensive models that cost twice as much.

Schedule Meals

One of the simplest and most effective strategies to cut costs is to schedule one's meals in advance.

If you have planned out what you are going to eat for the week and have shopped accordingly, you won't need to make any impromptu trips to the grocery store. On the other side, additional trips lead to increased financial expenditures and potentially the loss of edible food.

If you buy all of your core things from places with cheaper prices, like Aldi, it will be much simpler for you to stick to your financial plan and not go beyond.

In order to cut costs and save money, the website simplesavings.com.au recommends using the food that you already have in your freezer, garden, pantry, and cupboards.

It won't be necessary for a family of four to spend more than $21 on their weekly shopping if they follow these steps. Which is approximately $300 less than what an average household of that size spends each month. If you do this for one week each month, you will have saved nearly $3,600 by the end of the year. According to Mandy Danko, a member of simplesavings.com.au, the most important aspects of the "$21 Challenge" are to conduct a stocktake, create a menu plan, and compile a shopping list.

Become A 'Promiscuous Consumer'

Be wary if you are a brand devotee who purchases the same product or service on a regular basis.

The concerned vendor is aware that you are less price-sensitive than the majority of potential clients would be. Therefore, it is possible that they are taking advantage of your devotion or, even worse, that they are taking you for granted by charging you prices that are not competitive.

Don't let the emotional attachment you have to a vendor prevent you from finding a better price elsewhere; instead, look into other options.

It's possible that your current provider will provide you a better deal if you just threaten to go elsewhere. They will realise that maintaining existing clients is typically a much more cost-effective strategy than obtaining new consumers.

Don't lose hope even if they don't provide you a price reduction or a free upgrade. It is also likely that competing businesses are vying to be the first to offer you a favourable starting package.

Don't let the emotional attachment you have to a vendor prevent you from finding a better price elsewhere; instead, look into other options.

In a nutshell, you need to develop the mindset of a "promiscuous consumer."

Not only will being loyal not result in a better offer for you, but it will very certainly end up costing you extra as well.

Be sure that you do not have any brand loyalty and that you are willing to move whenever a different company offers a better bargain.

Avoid Having A Poverty Mindset

The practise of using money and other resources carefully and not wasting them is regarded as a virtue by a significant number of individuals.

However, despite the fact that being thrifty is a tried and true method for cutting costs, we must avoid the trap of being overly so.

Focusing on earning more money, saving money, and investing it wisely is ultimately the only way to get ahead financially.

Spending your time and energy trying to save money on things like groceries and electricity bills can only get you so far and puts you at risk of developing a mentality of poverty.

The mindset of someone who is poor, also known as lacking, is one that is consumed with a lack of money and all the things that person does not have and cannot have.

Beliefs that limit one's potential and decisions made out of fear of disappointment or loss are common among these individuals. On the other hand, individuals who have a mentality of wealth or abundance make decisions based on the potential advantages of those options.