How you may save money this financial year
11 September 2022
Recent years have presented ongoing financial challenges for many people. October 2022 is Safe Work Month, which is an ideal time to think about your financial health and consider some simple savings measures to help support your future.
Put your financial health front and centre with these simple steps to help you save money:
1. Know what you are spending
Just knowing where your money goes may be all you need to start spending less. Tracking where your money goes has become easier than ever. The Australian Securities and Investment Commission (ASIC), shows how to track your spending.
2. What’s your risk profile?
When it comes to your superannuation, understanding how you feel about risk is important in choosing an investment strategy that works for you. It could mean a big difference to how much money you have when you retire. Super is one of your biggest assets, so you may want to be in control of how your money is invested. Learn more about your risk profile.
3. Check you are getting the best deals
Saving money isn’t all about sacrifice. Being smart about your regular bills may help you save money by eliminating hidden costs or getting out of dud deals. Check your regular rates and payments by:
- Auditing your energy bill
Your energy bill may be among the biggest regular household payment, so it may be useful to audit your usage. The Australian Government1 offers some online tools that may help you find the best energy deal for you, as well reduce your energy use.
- Testing your telecommunications provider
Compare mobile phone plans, internet and package deals to potentially net you some savings. The Australian Communications and Media Authority2 offers some useful telco comparison tips.
- Checking what payments you make
Read your bank statement carefully to identify any regular payments or subscriptions you may be making, but have forgotten about. Review your automatic payments to ensure they are for products and services you still use.
4. Automate your finances
Automating your finances means putting systems in place to automatically pay regular bills and save money, so you don't have to manually move money or think about it on a daily basis.
Put simply, it’s a “set and forget” way to achieve your money goals, according to ASIC’s MoneySmart website.3
Having a system in place to direct money where it needs to be can make sure you don’t leave yourself open to late payment penalties, fees and other service charges.
Automatically transferring part of your pay to a savings account may also allow you to save without even having to think about it.
Knowing where your money is going and what your money personality means for the way you may best approach savings means you can start to put a budget in place to manage your spending. Try our budget planner calculator to get you going.
Whether you’re saving to enjoy a holiday, undertake home renovations or just to get your finances in better shape, establishing a savings goal will help you get there. Work out how much money you need and how long it will take you to save based on your budget.
Avoid hefty interest charges by paying off credit card debt or personal loans.
It also pays to be mindful about using Buy Now Pay Later options that operate without a service fee for customers who pay on time, such as Afterpay.
8. Make working from home work for you
You may already be aware that you may be saving money by working from home. Continuing to work from home following health crisis restrictions, even for only one or two days per week, may add to the money in your pocket through savings you may make on public transport tickets, or fuel, parking fees and wear and tear on your car. There’s also savings to be made on your work wardrobe and those added daily expenses like buying lunch or coffees at work.
9. Switch to simple saving habits
Small changes may add up to big dollars over time, so it may be worth picking one spending habit to change. A simple one may be switching from a large to a small barista coffee to save $1.50 a day. This switch will save more than $500 a year on buying coffee while still supporting some of your favourite hospitality businesses during the health pandemic.
Superannuation is a great savings tool due to the magic of compound interest.
You may also be able to enjoy tax benefits by salary sacrificing or be eligible for a host of other government incentives that can greatly boost the amount you retire with.
Consolidating your super into one fund is an additional step that may help you pay fewer fees, save on paperwork, avoid excess insurance premiums, and keep better track of your nest egg.
We’re here to help
Personal financial advice may help you save money right now, build a better future retirement, protect what you have and set strategic goals.
Find out more
1. Australian Government, Department of Industry Science, Energy and Resources, Switch to save, accessed 9 September 2022 www.energy.gov.au
2. Australian Communications and Media Authority, Call charges from your mobile phone, accessed 9 September 2022 at www.acma.gov.au
3. Australian Securities and Investments Commission, MoneySmart, Simple ways to save money, accessed 9 September 2022 www.moneysmart.gov.au/saving/simple-ways-to-save-money