Tips to Save Money

Save money
Save money

Try LifeHacker’s Advice and Save Money!

Budgeting isn’t easy, we deal with many daily and monthly expenses and it becomes hard to save money. Lifehacker shows us it’s as simple as switching your home loan and saving on your monthly repayments could net you up to $3000 in a year. Read some of our tips on refinancing. Refinance to Reduce Home Loans’ Rate Lovers Variable Home Loan, priced at 3.44% and with comparison rate at also 3.44% and save as much $2,000 per year or $50,000 over 25 years. See table below.

Loan Interest Rate Annual Repayments
Average P&I owner-occupied, loan listed on RateCity 4.30% $22,871
Reduce Home Loans – Rate Lovers Variable Home Loan 3.44% $20,891
Difference 0.88% $1,980
credit cards - save money

How to Save Money

With these tiny thin cards laying around our pockets, we can easily get tempted to waste our money instead of it. One swipe and we already have what we want. A few easy tricks to kick off saving money:

  • Write down your budget
  • Reduce your vices
  • Pack your own lunch
  • Drink more water

There are also other ways to save money and enjoy your savings in the future. Switch your credit card to a low-rate alternative credit card. According to Rate City average cardholders are charged with 17.04% interest rate and annual fee of $126. By switching a low-rate credit card you can save for up to $367/year.

If you have a vehicle, car insurance is a must and choosing the right car insurance can also add to your savings. Choose a third party insurance instead of your provider, according to lifehacker: “NRMA was $211 more expensive, for exactly the same product.”

Even choosing your bank can earn you more savings! Choose a bank with an account that has no monthly fees, ME Bank’s Buck Card even lets customers use any ATM without any fees. Seemingly small things like ATM withdrawal fees and account keeping fees can really rack up your spending if you’re not careful. Consider finding a bank with zero account keeping or ATM fees; you’ll be surprised how much you could save!

Most Australian residents use mobile phones daily – even switching your phone plan to a low-cost alternative can net you savings and in most cases, better bang for your buck. Opt for similar plans from lesser-companies, depending on your mobile needs. Also, consider reviewing your mobile plans. Australia’s biggest Telcos may not always offer the best value. Remember to shop around and you can make easy savings month to month. See table below for a comparison between Optus and Dodo.

Phone Plan Data Calls & Texts Monthly Price
Optus – $45 SIM only month-to-month 3GB Unlimited $45
Dodo – $40 month-to-month 18GB Unlimited $40
Difference 15GB extra Same $5

Why Save Money

Different people have different reasons why they need to save money but saving money with a clear goal in mind makes saving much easier. Reasons people are saving are:

  • To be financially independent
  • For vacations
  • Getting out of debt
  • Unforeseen expenses
  • Emergencies
  • Buying a house/car, and
  • For retirement purposes

Lifehacker has shown us that refinancing your home loan to a lower rate could offer you the best year-on-year savings. Though there are all sorts of ways you can easily save up depending on which provider you choose, and it all adds up. Need more tips to boost your savings? Here are tips on reducing your debt and tips to also maintain a good credit score for your future loans. Try to use our Budget calculator to better understand your regular expenses and see what you can cut down on. Visit our blog to learn few more tips and tricks that might help you in your saving journey.

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