Strengthen your savings muscle with Jess Irvine
By Katie Cunningham | Presented by CommBank|
Have you been finding it hard to save money lately? You're not alone. CommBank research has found that 88 per cent of Australians feel that the current cost of living has made it harder to save.
Whilst we can't control the global economy, the good news is there are still some stats-backed ways to save a buck. So to get the scoop on strengthening your savings muscle – even when times are tough – we asked CommBank's personal finance expert, Jess Irvine, for some tips.
Watch the video above to get started, then keep reading for more tips on stashing that cash.
1. Grocery shop less
Here's a fun, very helpful fact: CommBank data has found that those who only do one or two grocery shopping trips per week spend less overall than those who are hitting the shops every day or two.
In fact, shopping one less time per week could save you an average of 20 per cent off your total weekly bill. So, if you currently spend $150 a week on groceries, shopping once less per week could save you around $30 a week, or $1,560 over a year. Not bad.
2. Switch energy provider
You've probably heard that shopping around can help you get a better deal on your energy bills. It really is true: in fact, CommBank data has found that when customers switched utility providers, they saved an average of about 10-15 per cent on their bills, over a year.
If you want to find a good deal, you can jump on a few comparison websites to compare plan prices across different providers. The federal government's Energy Made Easy website is a great place to start, along with Victorian Energy Compare if you're in Victoria.
3. Dial a discount on your phone and internet
While we're talking bills, it's also a good idea to review how much you're paying for your phone and internet.
"You can either switch if you find a better deal or contact your current provider to see if they can match," Irvine says. "Devoting even an hour of your day to price-check a bill and make a phone call could save you hundreds of dollars over the year."
4. Audit your streaming subscriptions
Those streaming subscriptions can really add up – especially when you've got five of them on the go at once. Ask yourself: Do I still use it? Do I need it? Even dropping one $10 per month subscription could save $120 a year.
And don't forget there's a wealth of great shows to watch on free platforms and catch up services..
5. Shop around on insurance
Do you have car, health or home insurance? There could be ways to lower those bills.
"Insurance premiums have been rising rapidly recently, so review your level of coverage, including the excesses you agree to pay in the event of a claim, to make sure it still suits your current needs," Irvine says. "Then shop around for the most competitive provider of your chosen level of coverage."
6. Buy second-hand
In the age of online spaces like Facebook Marketplace, it's easier than ever to snag a deal.
So whether you're after a couch, a microwave or a handbag, try shopping second hand first – you'll pay significantly less than you would in-store and help save an item from landfill at the same time. It is also important to be aware and protect yourself from any potential online scams, remember to Stop. Check. Reject.
7. Wait for sales periods
You don't have to wait until Boxing Day for a bargain anymore. Retailers have shifted to hosting more big sales during the year – and discounting more heavily when they do them.
So if you do plan on shopping first-hand, wait and time your purchases with sale periods – including Click Frenzy (July), End of Financial Year Sales (July), Black Friday and Cyber Monday (late November).
8. Take advantage of cashback offers
These days, retailers will pay you to shop.
A new trend of 'cash back' websites and apps has emerged which offer you paid cash back into a dedicated account (usually after a waiting period) if you follow the links and instructions provided. If you're a CommBank customer, check out programs like CommBank Yello to get started.
9. Take advantage of rewards programs
Many retailers offer rewards programs for regular shoppers, which help you turbocharge your savings by transacting via a branded credit card.
Investigate and compare rewards card offers using one of the many online comparison websites, like Canstar, RateCity or Compare The Market.
10. Shop the shelves 'per unit'
The ultimate supermarket hack is to shop the shelves according to 'per unit' pricing – i.e., the cost per kilogram or 100 grams – to find the lowest price. Look for the unit pricing in the bottom right-hand corner of the dockets.
11. Use petrol price comparison apps
Did you know that petrol prices can vary by as much as 40 cents per litre in the same suburb?
Luckily, it's easy to check for the cheapest price near you using apps like Fuel Check (in NSW), Petrol Spy and Motormouth.
12. Downsize your data
If you're connected to work or home Wi-Fi networks most of the time, there's a good chance you're paying for more data than you need on your phone.
Check your usage to see if you can give that unlimited data plan the flick, saving a buck by dropping down to a smaller plan.
13. Swipe your library card and save
Dust off your library card – there's more to your local branch than just free books. You can also snag music and video content on user-friendly mobile apps, and some libraries even offer co-working spaces and free Wi-Fi.
14. Try a 'no spend' challenge
Attempting to bring down your grocery bill? "Try a 'no spend' period to see how long you can last eating up what's already in the fridge or pantry," says Irvine.
And you can extend 'no spend' challenge to all areas of life. You might like to see how many days you can go without spending a buck, or make it a fixed part of your week – for instance by designating every Tuesday as your zero-dollar day.
15. Space out your purchases
It may not be realistic to swear to never buy an item of clothing again. Instead, try putting a cap on your discretionary spendingby setting a budget for how much you can drop each month on categories like shopping.
If you start feeling the itch to add-to-cart when you've already hit your budget for month, make yourself wait until the 1st rolls around.
16. Rent what you need
Why purchase something you only need to use once when you can rent it for a fraction of the price?
For instance, if you need an outfit for a wedding, you could make use of dress rental websites. Or if you live in the inner-city and don't drive much, try car rental services for those days when you do need wheels.
17. Memorise this money-saving hack
Ultimately, how much you pay for anything comes down to two main factors: how much you consume of it and the price you pay per unit.
So whether it's food, bills or the discretionary stuff you're trying to spend less on, there's one piece of advice Jess Irvine says is broadly applicable.
"It always pays to ask yourself two questions for every purchase you make: Can I use less? Could I pay a lower price?" Words to live – and save – by.
Feel more confident about your relationship with money and start your financial fitness journey with CommBank today.
Discover a brighter side to money with tips on how to strengthen your savings muscle, master your money mindset and get your cash flow working for you. Learn practical steps to make your money go further today and plan for a brighter tomorrow at honey.nine.com.au/commbank
Source: CommBank Research 2024
This page provides general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as personal financial product advice. As the information has been provided without considering your objectives, financial situation or needs, you should, before acting on this information, consider if it is appropriate to your circumstances. You should also consider whether seeking independent professional legal, tax and financial advice is necessary.
