If you’re looking for the best way to increase savings, this article is for you. As leading financial planners in Melbourne, many clients come to us struggling with this common challenge. However, you’ll be surprised just how easy – and fast – it is to find some wins.
We’ve created a list of achievable ways to boost savings. Combine several of these ideas, and – ker-ching! – you’re on your way to growing your finances without really making much effort at all. Discover our saving money tips and start growing your wealth today.
If you decide to lose weight, what do you do? In most instances, you don’t tell yourself you’ll drop some kilos. You aim for an actual target, and you work towards it. Most of us work better when we have something tangible to reach, and finances are no exception.
Understanding why you want to save or clarifying what you want to save for is very powerful. It solidifies things and gives you a reason to go out and achieve. So, if you want to know how to start saving, establishing a financial goal is step number one. Envisage the reality and then put in place a plan to get there. How? Well – here are some more ideas to get the ball rolling…
Learning how to save money requires understanding where your money is going.
Our experienced financial planners are really good at tracking your spending, and it’s not nearly as big a task as you’re probably imagining. We work through an easy-to-digest budgeting and saving template that captures all your outgoings and gives you an instant appreciation for what is going where. Then it’s up to you to ask yourself why (and we can help you with this, also!).
Consider a savings goal to be somewhat like your financial strategy, while your cash flow and budget outline the blueprint or tactics to make it a reality.
You’d be shocked at how many clients have forgotten about old monthly direct debits they set up long ago. Memberships to gyms they no longer frequent, subscriptions to apps they no longer use—everything adds up. In most cases, this will become evident during our budget and cashflow planning, but it’s still worth singling out here so you start thinking about it.
It is easy to become complacent when life throws everything at you. Why make things any harder for yourself by adding a utilities evaluation into the mix? Whilst online comparison services such as Compare The Market can help fast-track a lot of this for you, going the extra mile could well be worth the effort.
Take, for instance, the Australian Energy Regulator’s 2022 Annual Retail Market Report. It found plenty of savings on offer for customers fishing for the best market offer. The difference between the highest and lowest electricity market costs at the time were:
One change and your savings plan just slipped into the next gear.
Speaking of change, the CSIRO estimates that by switching to electric vehicles and greener energy appliances, Australian households could save up to $2,250 annually. That requires more money upfront, yes, but if you have long-term saving goals (or your goals include becoming more sustainable), this could be a justifiable way to boost your savings down the track.
Our Melbourne financial planners are passionate about risk protection insurance. It’s one thing to improve savings and another to protect them. We love nothing more than scrutinising a client’s insurance policies to unearth misnomers or updates that can result in massive savings.
Indeed, we uncovered one such opportunity for a client who used to smoke. This client forgot to update her health insurance provider, and it wasn’t until our team was scouring her policy that we raised the question and discovered she hadn’t lit a cigarette for years. Despite this, she was paying the hefty premiums of a smoker. The instant savings in just one tick of a different box were eyebrow-raising.
And remember – paying an annual lump sum can often result in discounts compared to monthly instalments.
There’s a lot of no-cost content online these days. Not only that, but free-to-air TV can be pretty good if you’re careful in your selections. The point is to ask if you need all these channels and outlets. If you do, no worries, but find out if you can get better prices.
See what deals are available. You might even contact your current provider and tell them you’re going to switch—see if that prompts a fast (and generous) response.
Of the many money-saving tips you can consider, this one has the power to change how you place value on things.
Let’s say you’ve got your eye on some new trainers. Rather than buying them outright, find ways to save the amount they cost before you buy. What do we mean by this? For instance, you might decide to make coffee at home every day for a month. This alone could save you well over $150, depending on where you buy your coffee. Once your coffee saving achieves the surplus you need, bingo, you’ve got yourself some new trainers.
You might return to daily cafe coffees or continue the DIY caffeine hit to buy something else next month. You know what they say: It can take as few as 18 days to form a new habit…!
We like this idea because it’s a little fun and pretty much effortless. Save one cent on day one. The following day, save two cents, and the day after that, three. Continue for 365 days a year, and you could end up saving more than $650. Not bad for minimal effort!
We’re keen to donate as much as possible to charity. However, in some instances, it might be worthwhile to see if you can sell your item before you give it away. Facebook Marketplace, online second-hand outlets, Gumtree, etc, are all potential ways for products you no longer need or want to create some extra coin.
Can’t be bothered? Hand it to one of the kids as an online project and offer them a commission. As naturally savvy online operators, they’ll probably do a better job of photographing and marketing the item than you would have, so everyone’s a winner!
We hope these money-saving tips have inspired you. If you think we can help you grow your wealth, our expert financial planners are always available for a no-obligation, no-cost conversation.
Start saving with a phone call – contact our team today!
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