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Sometimes the most challenging part about saving money is getting started.

If you need help saving money, then follow this step-by-step guide. It can help you develop a simple, realistic strategy to save for your short-term and long-term goals.

Our list of clever ways to save money will help you make simple adjustments in your daily habits that will help you meet your financial goals. So, let’s get started!

1. Record Your Expenses

Use your bank statements and credit card to track your household expenses to know how much you spend. Record them in a simple spreadsheet or an online spending tracker app.

2. Automate Transfers

What is the cheapest way to save money? Set up an automatic monthly money transfer from your transaction account to your savings account. It is a great way to keep your savings in check. Apps like  and  lets you save and invest money for your diverse financial goals without making any effort.

You can create good savings if you do this practice diligently and consistently for some years. You can use your accumulated money as a contingency fund or meet specific goals, such as buying a home, vacationing, or repaying existing debt.

3. Cut Down On Your Grocery Expense

Here is how to save money on groceries in Australia: 

• To avoid buying unnecessary items, check your pantry and make a shopping list before heading to a grocery store. 

• Resist your urge to make an impulsive purchase. Stick to your shopping list so that you only purchase what you require.

• Shop with your cash-back debit/credit card to earn reward points and an extra 5% or 6% cash back on grocery purchases. You can even consider joining your local store’s loyalty program to get additional discounts, gift cards, or other rewards to maximize your savings.

• Different grocery stores offer discounts to users. Find the ones that offer higher discounts and visit those stores for everyday needs. 

• Save by buying seasonal vegetables and fruits.

• Buy daily essentials such as olive oil, coffee beans, dishwashing powder, and cheese in bulk, or buy larger quantities with your friends to get a better discount.

4. Reduce Your Energy Usage

• Swap your old electric/electronic appliances with more energy-efficient appliances or lights

• Adjust temperature settings on ACs to the most efficient levels. 

• Only cool or heat the room you are using rather than the whole house

• Use cold water in your washing machine and run it only with a full load 

5. Save Money On Health Insurance

• Only pay for what features you need. Don’t pay for optional treatments that you are unlikely to use.

• Shop for health coverage around peak periods, i.e., March or June, to score a range of incentives and bonuses. 

• Get direct debit discounts by prepaying for health insurance 

• Pay a higher excess to lower your policy premium. 

6. Save Money On Rent

• Get roommates, as sharing can save you money.

• Those who are living in rented accommodation exceeding their living needs can consider switching to a smaller one

• Negotiate for a lower rent

• Rent out your car parking space to generate some additional income.

7. Shop Around For Better Deals

One of the best money-saving hacks in Australia is to make a habit of comparing your options before you buy anything. It goes for almost everything you wish to purchase, such as energy suppliers, insurance premiums with different insurers, phone, and internet plans, etc. 

Doing this will help you get better and more cost-effective deals.

• Also, check online before you buy in a store, as most online stores offer more attractive discounts than what you get at a physical store. 

• Find and use discount coupon codes when buying anything online. Several websites offer a range of coupon codes, helping you save on medicines, clothes, health and beauty products, tech gadgets, and more.

8. Reduce Spending On Restaurants 

• Eating out has become costlier nowadays. To save more, reduce your trips to restaurants, cafes, and other similar places.

• Taking advantage of credit cards that give you reward points on restaurant spending and skipping dessert and drinks can help you control your expenses.

• Carrying healthy snacks like muesli bars, nuts, and fruit can reduce your urge to eat outside.

• Learning to cook is the best way to cut down on restaurant expenses. Cooking videos online can teach you to make delicious dishes at home and a lesser price.

• Delete food delivery services and choose a “takeaway meal” at a lower cost.

• Bring lunch to work.

• Host get-togethers at home instead of at restaurants.

9. Save On Entertainment

• Find early bird discounts when booking festival and concert tickets.

• Take advantage of free days at national parks and museums to save on entertainment costs.

• Instead of splurging on expensive tickets, attend free concerts and in-person events organized by your local community. 

• Many events offer discounts for senior citizens, students, couples, army men, etc. Check them before you book any.

• Instead of spending a lot of money on Gym memberships, look for free classes or groups in your local area. Online fitness challenges and workout videos are good ways to stay fit without spending a single penny.

• Change your cable TV plan by bundling your cable and internet service to save on monthly charges.

• Cut premium subscriptions (if you have any)

10. Consider Buying Free Stuff On Gumtree

A lot of people give away their belongings for free on . You can find it in the “Freebies” section. You can find many things, from furniture and kitchen appliances to clothes, movies, or books.

11. Schedule Your Major Purchases For the Festive Sale Season

Create a list of the things you need to purchase and buy during the annual sale. Some of the sale events to watch out for are: 

• End-of-season sale/stock-clearance sale

• Festive sale (Christmas sale, New Year sale)

• Anniversary Sale

• Product launches

• Flash sales

• Limited Time-Deals/Offers 

• One-off discounts

• Joint or cobranded sales

• Gated sales etc.  

12. Get Creative

Instead of buying expensive gifts, you can make gifts such as handmade greeting cards, decorative items, show pieces, personalized t-shirts, paintings, soft toys, etc.

In addition to it, you can also prepare sweets, cakes, pastries, chocolates, cookies, and other eatables for your loved ones by yourself. Not only will it cost you less, but it also will show your heartfelt emotions in the most impressionable way.

13. Reduce Your Car Costs

Refinancing your auto loan at a lower interest rate could save you substantial money over the loan term. Regular car servicing is also a way to reduce the possibility of hefty car repairs.

14. Take Out Pet Insurance

Buy suitable pet insurance to get long-term protection against unexpected medical expenses.

Also, keeping your pet healthy and fit can help you avoid bills for expensive health issues.

15. Buy Clothes That Don’t Require Ironing And Dry Cleaning

To save money on electricity and dry-cleaning, wear clothes that don’t have the tag “dry-clean only”. It will avoid additional dry-cleaning costs.

16. Prepare Your Cleaning Products

One of the good ways to save money at home is to stop buying cleaning products. Make them home using readily available items such as baking soda, vinegar, table salt, and lemon juice. 

You will find simple and quick recipes online to make your detergents, stain removers, and disinfectants at home at a lower price.

17. Shop Out Of Season

The best time to buy shorts, warm coats, blankets, and singlets is after the end of the season. You can find them at discounted prices. Most sellers will be willing to sell the off-season clothes at half-price to create space for fresh stock.

18. Use Reusable Items

Buying reusable items such as food containers, shopping bags, cups, snack bags, sports tape, ice and heat packs, and travel bottles helps to save money and the environment.

19. Know Your Refund Rights

To save money, never hesitate to ask for a refund, repair, or replacement policies related to a service or product.

20. Set Savings Goals

Having a specific yet realistic goal helps you achieve your financial goals fast. You can use a  to get an idea of how much salary you need to save each month. It also shows how many years it takes to meet your immediate or long-term financial needs, such as:

• Short-Term Goals: Emergency fund (3 to 9 months of living expenses), down payment for your car, or vacation

• Long-Term Goals: Down payment on a home purchase or renovation project, your child’s education/marriage, or your retirement

A great way to save money is splitting your income into sub-accounts for your savings/ expenses, such as grocery budget, travel fund, etc. Organizing your income this way becomes convenient to stick to a budget.

21. Pay Off High-Interest Debt

One of the biggest money-saving tips is to reduce your most expensive debts, based on fees and interest rates, as much as possible. 

To save money fast, start repaying debt with additional repayments. It will save thousands in interest and improve your borrowing capacity in the long term.

22. Choose The Right Saving Tools

The investment instrument you choose differs based on the goal you have. To meet short-term goals, consider accumulating your money in a high-yield savings account or certificate of deposit.

To save money in a bank, consider putting money in the below high-interest savings accounts that pay more than large traditional banks.

On the other hand, if you want to know how to save money for a house, or any other long-term goals, you can consider the following:

• Tax-efficient savings accounts such as FDIC-insured individual retirement accounts or 529 plans 

• Mutual funds

23. Register Your Family For The Medicare Safety Net

Register your family for the Medicare Safety Net. If your out-of-pocket Medicare expenses exceed this threshold, Medicare will refund your costs at a higher rate. 

24. Create A 50-30-20 Budget Rule

A place to start saving is to identify where your income is going. The 50-20-30 principle depends on money management, where you prioritize your spending and accordingly prepare a budget and follow it. 

In a 50/30/20 budget, you allocate your after-tax income to different expenses with the following percentages:

• 50% - Daily essentials like bills, mortgage repayments, food, rent, and transport.

• 30% - Towards the things that you enjoy (wants that are not urgent)

• 20% - Savings and debt payments.

It is the ideal allocation; you may make little adjustments in any of the above based on your household. 

25. Frequently Asked Questions

How Much Does The Average Person Save In Australia?

The average Australian saves 23.2% of their take-home salary. However, 18-34-year-olds save around 32% of their salary. 

Saving 15-20% of your salary should be your goal. Reducing your wants and increasing your earning capacity can help you save even more.

How Much of My Salary Should I Save In Australia?

Save between 10% and 20% of your paycheck towards your goals. However, it depends on your short-term and long-term goals. Your saving percentage can increase or decrease depending on your goals.

How To Save Money Fast on a Low-Income?

Follow these top 10 brilliant money-saving tips to boost your savings:

1. Learn how to cook to cut down trips to the restaurant. Pack snacks when you are out to avoid eating outside.

2. Get a coffee machine to avoid buying expensive coffee from a café.

3. Open a high-interest savings account.

4. Get your kitchen staples at discounted grocery stores like .

5. Cook meat-free meals as meat are expensive.

6. Take a shopping list when you go on a weekly shopping trip.

7. Shop online in a local store to get discounts and cashback on the same products.

8. Browse sites to find coupon codes and use them when buying medicines, clothes, jewellery, beauty and health products, and tech gadgets.

9. Learn from online videos and prepare your cleaning products

10. Use reusable items such as food containers, carry bags, coffee cups, snack bags, and water bottles.

How To Save Money From Your Salary?

When receiving your salary, make it a habit to transfer a percentage into your savings account. Consider it a non-negotiable payment. It will help you build your savings over time.

How To Save Money as a Student?

Here are some brilliant tips to find out how to save money for students:

• Compare and switch to low-priced phone plans.

• Share streaming services like Netflix, Spotify, and Stan with friends. Most of these services allow 4 to 5 users to share one account. 

• Instead of buying new books, visit a local library that lets you borrow books, audiobooks, movies, and magazines for free once or twice a month. 

• In addition to shopping at online stores, use cashback coupons and apps to save extra money.

• Follow the best driving practices, as the way you drive influences how much fuel you spend. Driving constantly at a higher speed and frequently jamming on the brakes will burn more petrol.

• Take advantage of early bird discounts when booking a concert and festival ticket.

How Much Savings Should I Have at 40?

There is no exact answer to it. It depends from person to person. 

Based on your financial needs, when you want to retire, and other financial commitments such as home loan/rent, you can decide on how much savings you need at the age of 40.

Some of the considerations could be:

• If you have a mortgage and want to repay it faster, you may need to save more. 

• Depending on the level of income protection or life insurance you want, you can decide how much you need to save by 40 and later.

• If you are planning to buy a home

• If you want to accumulate funds for your child’s higher education and marriage 

How Much Will $1000 Be Worth In 20 years?

If you put $1,000 in a bank at 6% interest, you earn $3,207 after 20 years. So, you will have made $2,207 in interest. It shows that the more you save and keep your money invested, the more money you will make.

26. Conclusion

Just like how much you earn, it is equally important how you spend and save money. “Saving” is not a one-day practice. 

You must constantly review your savings and methods and assess your progress monthly. Even if you start small, it will make a big difference later.

Useful Links to Explore:

• English Language Requirements for Australia
• Cultural differences you may experience in Australia
• How to find Part-Time work as a Student in Australia
• Seven Tips for Students on a Budget in Australia
• How to get a Scholarship to Study in Australia
• Driving in Australia as an International Student
• How to change your Course or Institute in Australia
• The Benefits of a Professional Year Program (PYP)
• A Complete Guide to Study in Australia
• Types of Education in Australia 
• What to Study in Australia?