When you’re looking to buy your first home, or you’re facing rising interest rates, money can become a little bit tricky. You want to save as much as possible, but you don’t necessarily want to live a fully frugal lifestyle.

Are there ways to save money and feel good doing it? You bet! Here are 5 ways to save money and feel good doing it.

5 ways to save money and feel good doing it!

1. Consider a debt snowball approach

Paying off debt is one of the best ways that you can save money over the long term. And one of the best ways to pay off debt quickly is through the debt snowball method. This is a strategy where you pay down your smallest debt first, or the debt with the highest interest rate first by focusing any extra funds towards that particular debt, while paying the minimum balance on the others.

Once the first debt has been paid off you then put your extra money (which may also include the amounts you’d otherwise be paying on the first debt) towards the next smallest debt. You then continue to allot all your extra payments towards the next smallest debts until all your debts are paid off!

If you want to incorporate savings into this plan you can divide your extra money into two streams. One that is heading towards paying down the debt, and the second that you squirrel away into a savings account. As you pay down debt you’ll have more available for each stream, so you can pay down your debt quickly, while still building up some cash!

Another bonus is that because you’re never really increasing the amount of your outgoing (unless you choose to pay more!), you can continue to live the lifestyle you’re comfortable with.

2. Power down to power up your savings

Electricity costs are rising in Australia. As of July 2023, electricity prices were expected to increase around 20% for every state in Australia, with some going as high as nearly 24%! It only makes sense that saving on your power bill, can help you power up your savings!

Your first step is to see if you can get a better deal. The Energy Made Easy website lets you upload a copy of your energy bill and can show you other retailers who can offer you a better plan. And a better plan means more savings in your pocket!

Once you’ve ensured you’ve got the best deal for your electricity, it’s time to take a look at your usage. Have a wander around your home and see where you can cut back on power use. The ABC has a huge list of ways to save on electricity. These include:

• setting your refrigerator to 4 degrees Celsius
• not rinsing plates before putting them in the dishwasher
• only boiling as much water as you need in the kettle
• installing an efficient showerhead
• using cold wash in your laundry
• cleaning the dryer lint filter
• fitting curtain boxes above your curtains
• using a laptop instead of a PC

…and much more!

Finally check to see if you qualify for any concessions on your energy bill. For example, in Queensland, concession card holders could be entitled to a rebate of $372.20 per year. Other states offer similar rebates.

3. Review your subscriptions

Managing your subscriptions – both streaming and app subscriptions – can be costly. A 2022 study showed that consumer consistently underestimated how much they were spending on subscriptions by a whopping $133 per month!

Getting a handle on your subscriptions could save you big. The first step is to figure out what subscriptions you are paying for. Then break them into three categories – needs, wants and ‘why are we paying for this!’ First get rid of all the subscriptions that nobody uses (those are the ‘why are we paying for this!’ category).

Then look at your wants. For example, you may have multiple streaming services but be binge watching several shows on one at the moment. It’s a good idea to pause the others and save that money. You can always pick them back up again when you’re ready to watch something on those services.

You’ll also want to try to avoid paying annual subscriptions. Though they cost less initially, if you’re not using the app each month, then you’re paying for something that’s delivering you no value. And you’re locked in losing the flexibility to cancel when you’re ready to save a bit of cash.

4. Be a food warrior not a food waster

Food waste is a huge problem for Aussie households. In fact, we waste 7.6 million tonnes of food each year, which costs households $19.3 billion. The average household loses $3,800 every year due to food waste – a huge expense!

So how can you avoid food waste in your homes? Some ways could be to:

• Eat what you have and buy only what you need
• Meal plan
• Pick ‘ugly’ fruit and veggies
• Join a co-op or buy from your local farmers
• Store food well so that it has a longer life
• Use leftovers
• Check date labels and use food before it has to go
• Join your local ‘swap’ community group!

Other tips can be found at foodbank.org.

5. Refinance for relief!

Of our 5 ways to save money, refinancing is one of the absolute best. In fact, research in 2022 showed that Australians could save an estimated $1,908 per year by refinancing to a new lender. And despite the market changing over the past couple of years, there are still huge savings to be had in 2024 (as well as loads of other benefits!).

In fact, because of interest rate rises, more and more Australians have been keen to refinance their homes. This has driven serious competition among lenders and led to some excellent home loan refinance offers.

The best part about refinancing your home loan? It frees up money that you could be using to build up your savings without changing your lifestyle in the slightest!

Let us help you refinance!

At Lending Loop, we have more than 40 lenders to choose from. And our expert team have the inside scoop on some great home loan refinancing deals. Refinancing can not only help you with repayments, it can also free up much needed case so you can achieve your savings goals this year! You just have to give us a call!