Money expert reveals 10 savvy ways to reduce your expenses

Money troubles got you down? Money expert shares how you can be savvy and save a few bucks. You can trim your spending and keep more cash in your pocket.
August 29, 2024
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Cutting costs is easier than you might think. From small changes at home to smart shopping tricks, there are loads of ways to stretch your dollars further.

A money expert from M.A.S Accountants shares 10 savvy ways to reduce your expenses without giving up the good life.

1. Switch to LED bulbs

Changing to LED light bulbs is a top-notch way to cut down on power bills. These little beauties use way less juice than old-school bulbs. They’re a real winner for Aussie homes and businesses alike.

LED lights last heaps longer too. You won’t be climbing up ladders to change them as often. That’s a big plus for busy households.

The savings can really add up over time. Swapping to LEDs could save around $4,000 over 20 years. That’s not chump change!

LEDs come in all sorts of colours and brightness levels. You can find the perfect one for every room in your house. They work a treat in outdoor areas too.

Some people think LEDs are expensive, but prices have come down significantly. The long-term savings make them well worth it, and they’re better for the environment.

LED bulbs are far more energy-efficient than other types. They’re a no-brainer for anyone looking to save a few bucks on their power bill.

2. Buy generic brands

Aussies can save a fair bit of dosh by choosing generic brands at the shops. These products are often just as good as the big names, but cost less.

Many supermarkets have their own lines that offer great value. Woolies and Coles both stock heaps of cheaper options across the store. From tinned tomatoes to toilet paper, shoppers can find bargains.

It’s worth giving generics a go with everyday items first. Things like flour, sugar, and pasta taste much the same regardless of brand. Cleaning products are another good place to start.

Some people worry generic foods won’t be as nice. But blind taste tests show most can’t tell the difference. It’s all about finding what works for each family.

Switching even a few items to generic can add up to big savings over time. It’s an easy way to stretch the weekly budget further without much effort.

3. Automate your savings

Saving money can be a breeze with automation. Setting up automatic transfers is a top way to build savings without thinking about it. Many banks offer this service for free.

A great trick is to transfer part of your pay straight into savings. This can be done through your employer or by setting up a regular transfer from your everyday account.

Some clever apps and bank accounts let you round up your spending. When you buy something, the extra cents get popped into your savings. It’s a painless way to save a bit extra.

Budgeting apps can be ace for tracking where your money goes. They help you spot areas where you can trim spending and boost your savings.

For those keen on investing, automatic transfers to investment accounts can help grow wealth over time. It’s a hands-off approach to building a nest egg.

By automating savings, Aussies can reach their money goals faster and with less fuss. It’s a ripper way to take control of your finances without the stress.

4. Cook meals at home

Cooking at home is a ripper way to save some serious dosh. Aussies who whip up their own tucker can cut their food bills by heaps. Buying ingredients and making meals from scratch costs way less than eating out or getting takeaway all the time.

Planning meals for the week ahead helps avoid wasting food. Make a shopping list and stick to it at the supermarket. This stops impulse buys that blow the budget.

Bulk cooking is a top tip for saving time and money. Make big batches of food and freeze portions for later. Slow cookers are grouse for making cheap, tasty meals with minimal effort.

Using up leftovers stops good food going in the bin. Get creative and turn last night’s roast chook into a yummy pasta or stir fry the next day. Every bit counts when you’re watching the pennies.

Cooking at home lets you control what goes into your food too. It’s often healthier than takeaway or restaurants. Plus, it’s a bonza chance to learn new skills and have a go at different recipes.

5. Use public transport

Public transport can really slash those transport costs. Buses, trains, and trams are often cheaper than driving a car every day. They save heaps on petrol, parking fees, and car upkeep.

Catching public transport also cuts down on stress. No need to battle traffic or hunt for parking spots. Just hop on and relax while someone else does the driving.

Many cities offer weekly or monthly passes that make riding even cheaper. These passes let people use different types of transport for one set price.

Public transport typically costs less than owning a car when you add up all the expenses. This includes things like car repairs, insurance, and rego.

Some workplaces give staff discounts on public transport fares. It’s worth asking the boss if this perk is on offer.

For those living far from stops, park and ride facilities can help. Drive part way, then jump on a bus or train for the rest of the trip. It’s a top way to save cash and time.

6. Cancel unused subscriptions

Heaps of Aussies are wasting money on subscriptions they don’t use. It’s time to take a good look at those pesky recurring charges and give ’em the flick!

Start by checking your bank and credit card statements. You might spot some forgotten subscriptions hiding there. Don’t forget about those free trials that turned into paid memberships without you noticing.

Apps can help you track and cancel subscriptions. They’ll do the hard yakka for you, finding those sneaky charges and making it easy to axe them.

For mobile subscriptions, check your phone settings. iPhones and Androids both have spots where you can see and manage your active subscriptions.

Look at your streaming services too. Do you really need Netflix, Stan, and Disney+ all at once? Maybe it’s time to cut back or share accounts with mates.

Don’t forget about other common subscriptions like online gaming services or cable packages. If you’re not using them, give ’em the boot!

By ditching these unused subs, you’ll save a fair whack of cash each month. It’s a ripper way to trim your expenses without much effort.

7. Buy in bulk

Buying in bulk can be a top way to cut costs. Aussies love a good bargain, and bulk buying is a ripper way to save some dosh.

Stocking up on non-perishable items like tinned food, rice, and pasta can lead to big savings. Buying staples in large amounts when they’re on special is a smart move.

Toilet paper, cleaning products, and pet food are other great items to buy in bulk. These don’t go off and are always needed, so getting them in larger quantities makes sense.

Shopping at local markets for fresh produce can be another way to save. Buying seasonal fruits and veggies in bigger amounts often works out cheaper.

It’s important to have enough storage space at home for bulk buys. A spare cupboard or pantry comes in handy for this.

Teaming up with mates or family to make bulk purchases can also be a good idea. This way, everyone gets the savings without needing heaps of storage space.

Remember to check unit prices when buying in bulk. Sometimes, what looks like a good deal might not be as cheap as it seems.

8. Use cashback apps

Cash back apps are a ripper way to get some dosh back on your everyday purchases. These little beauties work by giving you a percentage of your spend back when you shop at partnered stores.

Popular apps like KickBack, Rakuten, Honey, and Ibotta let you save money across heaps of categories. You can score some sweet deals on groceries, clothes, and even travel.

It’s dead easy to use these apps. Just download one, sign up, and start shopping through their platform. Some even let you link your credit card for automatic cash back.

Fetch Rewards is tops for turning everyday buys into points. If you’re after cash back on supermarket staples, Shopmium is the go.

Don’t forget to check out RetailMeNot for cash back from loads of different shops. It’s a bonza way to save on your online shopping.

These apps are fair dinkum about security too. They use top-notch protection to keep your personal info safe as houses.

So why not give cash back apps a burl? It’s an easy way to stretch your dollar further and score some extra coin.

9. Take advantage of sales

Smart shoppers love a good bargain. Sales can be a great way to save money on things you need. But it’s important to be careful.

Make a list of items you actually need before going shopping. This helps avoid impulse buys on things that aren’t necessary.

Keep an eye out for upcoming sales events. Many shops have regular sales at certain times of the year. Knowing when these happen can help you plan your purchases.

Compare prices between different stores and try to shop independently where possible. Just because something is on sale doesn’t always mean it’s the best deal. Check a few places to find the lowest price.

Don’t get carried away by big discounts. A 70% off sign might look exciting, but it’s only a good deal if you really need the item.

Try to buy in bulk when non-perishable items you use often go on sale. This can save money in the long run. But be careful not to overbuy things that might go off.

Some shops offer price matching. If you find a better deal elsewhere, ask if they’ll match it. This can save time running between stores.

Remember, a sale is only helpful if it saves you money on things you would buy anyway. Stay focused on your needs and budget.

10. Review your insurance policies

Car insurance costs can take a big bite out of your budget. To save money, it’s smart to compare quotes from different insurers. Each company uses its own method to set prices, so rates can vary a lot.

Online tools make it easy to get multiple quotes side by side. This lets you find the best deal for your needs and wallet. Don’t just stick with the same insurer year after year.

Look at bundling your policies too. You might get a discount for having more than one type of insurance with the same company. This could include your car, home, and contents insurance.

Check if you’re paying for extras you don’t need. Some policies include things like roadside assist or hire car cover. If you don’t use these, you could save by removing them.

Ask about other ways to lower your premium. Some insurers offer discounts for things like having a good driving record or installing an alarm in your car.

Understanding Your Expenses

Knowing where your money goes is key to cutting costs. A clear picture of your spending habits helps find areas to save.

Fixed vs. Variable Costs

Fixed costs stay the same each month. These include rent, mortgage payments, and car loans. Variable costs change from month to month. Things like food, petrol, and entertainment fall into this group.

It’s smart to list out all your fixed costs. This shows what you must pay no matter what. Then, look at your variable costs. These are where you can often find savings.

Some bills might seem fixed but can be reduced. For example, you might lower your housing costs by moving or refinancing. Check if you can get better deals on things like insurance or phone plans.

Tracking Your Spending

To really understand your expenses, you need to track them. Write down everything you spend for a month. Use a notebook, spreadsheet, or budgeting app.

Group your expenses into categories like food, transport, and fun. This shows where most of your money goes. You might be surprised by how much you spend in some areas.

Look for patterns in your spending. Do you buy lunch out every day? Are you paying for subscriptions you don’t use? These are spots where you can start to cut back.

Many banks offer tools to help track spending. They often group your purchases automatically. This can make it easier to see where your money is going.

By tracking your spending, you can find easy ways to save every day. Small changes can add up to big savings over time.

Effective Budgeting Strategies

Proper budgeting helps Aussies keep their finances on track and reach their money goals. A well-planned budget gives a clear picture of income and expenses, making it easier to save some dosh.

Setting Realistic Goals

When setting budget goals, it’s smart to be practical. Start by writing down short-term and long-term financial aims. Short-term goals might include saving for a holiday or buying a new telly. Long-term goals could be paying off the mortgage or building a nest egg for retirement.

Make goals specific and measurable. Instead of “save more money”, try “save $200 per month”. This makes it easier to track progress.

Be sure to set deadlines for each goal. This creates a sense of urgency and keeps you motivated. Remember, goals can be adjusted if needed. Life changes, and so can your budget!

Creating a Monthly Budget

A monthly budget is a top tool for managing your finances. Start by listing all sources of income. This includes wages, investments, and any other cash coming in.

Next, jot down all expenses. Break these into fixed costs (rent, bills) and variable costs (food, entertainment). Don’t forget to include irregular expenses like car rego or gifts.

Use a simple spreadsheet or budgeting app to track your spending. This helps spot areas where you might be overspending.

Aim to allocate your income using the 50/30/20 rule:

  • 50% for needs
  • 30% for wants
  • 20% for savings and debt repayment

Review and adjust your budget regularly. This keeps it relevant and helps you stay on track with your financial goals.

Leveraging Technology to Save

Modern tech tools can help Aussies stash more cash. These digital mates make it easier to track spending and grow savings without much fuss.

Budgeting Apps

Budgeting apps are a ripper way to keep tabs on your dosh. They link to your bank accounts and credit cards to show where your money’s going. Popular options like Pocketbook and MoneyBrilliant give you a clear picture of your spending habits.

These apps group expenses into categories like food, transport, and bills. You can set spending limits for each category and get alerts when you’re close to going over. Some apps even suggest areas where you can cut back.

Many budgeting apps are free to use, with premium features available for a small fee. They’re dead easy to set up and use on your smartphone, so you can check your budget on the go.

Automated Savings Tools

Automated savings tools take the hard yakka out of putting money aside. They work by moving small amounts from your everyday account into savings based on rules you set.

Apps like Raiz and Spaceship Voyager round up your purchases to the nearest dollar and invest the difference. For example, if you buy a $3.50 coffee, they’ll move 50 cents into your investment account.

Some banks offer their own automated savings features. ING’s Everyday Round Up and CommBank’s Goal Tracker are top examples. These tools can help you save for big goals like a holiday or a house deposit without even thinking about it.

Automated savings tools are great for people who struggle to save regularly. They make saving a habit by doing it in the background of your daily life.

David Ryckman

Senior contributor and editor of Carousel Bondi. If he isn't writing or reading, you will find him down at Bondi Beach. Stories and pitches via editor@carouselbondi.com.au

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