By Ben McEachenWednesday 11 Sep 2024Money: Faith & FinancePodcastsReading Time: 5 minutes
We’re all keen to save money right now!
Key points
- If you do not have a budget, starting one should immediately reveal surplus funds you could save.
- Paying off debts or insurance premiums more frequently can drastically reduce interest accrued.
- For the full list of tips, listen to the episode of Money: Faith and Finance in the player above, in the Hope 103.2 app or wherever you get your podcasts.
Here are our favourite tips to start saving money (immediately).
Whether it’s budgeting, strategic saving or smart spending, you can manage your own finances well in the face of rising living costs.
Here’s the best practical advice and community-sourced tips from the latest season of Money: Faith & Finance.
1. Embrace budgeting for financial health
Budgeting is the cornerstone of financial stability.
As Pete Burrows succinctly stated: “Don’t spend more than you earn and actually have a budget.”
This straightforward principle can transform your financial standing almost immediately.
Rolling budgets: The Continuous Method
Ruth, a contributor from the Money Faith and Finance Facebook group (join here!), introduced the concept of a rolling budget.
Unlike a static budget that might easily be disregarded, a rolling budget is dynamic and adjusts based on your financial performance each month.
“If you know a bill’s coming in every time you get paid, you need to allocate some money [for] that bill rather than just wait for the bill and say, ‘I don’t have any money to pay it,'” Pete said.
Practical steps:
Start now: For anyone without a budget, starting one is likely to instantly reveal surplus funds you could save.
Allocate wisely: Identify and allocate funds for future expenses to avoid financial surprises.
2. Use technology to save money
Incorporating technology, such as apps designed to find savings in everyday expenses, is a powerful money-saving technique.
Various apps help users save on fuel, groceries, and even fitness-linked rewards (listen to the full episode for a handy list).
Fuel Apps: Immediate savings on the go
These apps can be vital to making every cent count, especially when fuel prices skyrocket.
General utility apps
Look further afield than fuel apps to help with your financial planning and daily savings.
By adopting more apps, we can become increasingly conscious of potential savings in all areas of our lives.
Practical steps:
Explore fuel apps: Use apps specific to your location to find the cheapest fuel.
Investigate further: Look for apps that offer discounts and rewards on groceries, utilities, and even entertainment.
For anyone without a budget, starting one immediately will likely reveal surplus funds you could save.
3. Manage your regular payments
Modifying the frequency and method of bill payments can make a big difference.
Transitioning from monthly to fortnightly or weekly payments can lead to substantial interest savings.
Frequency of payments: Reducing interest costs
Paying off debts or insurance premiums more frequently can drastically reduce the interest accrued.
“Pay your bills more often, and you’ll pay them off quicker,” Pete said.
“If there’s any interest being charged on your bills or your loans, you’ll pay less interest because you’ve paid them down quicker.”
Real-World applications:
Credit card management: Pay off your balance weekly or bi-weekly to minimise interest charges.
Mortgage payments: Adjust your mortgage payments to fortnightly instead of monthly, cutting down on total interest over the life of the loan.
4. Make some lifestyle adjustments
Everyday lifestyle choices have a profound impact on our finances.
Drive less, save more
For city dwellers, particularly, reducing car usage translates to savings on fuel, tolls, and parking fees.
Driving is a fact of life for most of us though, so any reductions we can make will have an impact.
Energy efficiency at home
Simple habits, such as turning off lights when not in use or dressing warmly instead of cranking up the heater, can slash utility bills.
Practical steps:
Evaluate travel necessities: Consider public transport or carpooling where possible.
Home energy practices: Use efficient heating and lighting practices — layering up during colder months can significantly cut heating costs.
Paying off debts or insurance premiums more frequently can drastically reduce the interest accrued.
5. Use community resources
What is available to you in your local area at little or no costs?
Public libraries are one of the often-overlooked financial resources in our community.
They provide more than just books; they offer multimedia resources which can reduce entertainment costs significantly.
Libraries: a wealth of free resources
Borrowing instead of buying can produce substantial savings.
Also, the availability of books, movies, TV series, documentaries, magazines, newspapers and even digital resources can replace costly subscriptions.
Practical steps:
Visit the library: Maximise your library membership and make use of free access to a wide range of media.
Community networks: Instead of purchasing, consider borrowing tools, books, and other resources from friends and neighbours..
6. Sell unused items: transform stuff into cash
Selling items you no longer can be a huge financial win.
Platforms such as Facebook Marketplace and Gumtree make it easier than ever to turn unused items into extra cash.
Decluttering for cash and space
“If you’re not using it, pass it on to someone that can,” Pete said.
“Lend it out or sell it.”
This will not only generate cash but will also help declutter your living space, further prompting healthier, more efficient financial habits.
Practical steps:
Online marketplaces: Regularly list unused items on online platforms.
Mindful future purchases: Reflect on the necessity of items to prevent future clutter and expenses.
Ultimately, effective financial management is less about grand gestures and more about consistent, mindful practices.
Any of us can achieve significant, instant savings by integrating these accessible, practical tips.
Whether it’s adopting a rolling budget, negotiating service rates, or becoming an avid user of community resources, small changes can lead to big savings.
BONUS: Pete Burrows LIVE!
Pete Burrows will be at St John’s Church, Mona Vale, Sydney, on Saturday September 14. Pete will cover practical money matters as well as answering your questions about managing finances during these difficult times.
Register here for this free event.
For the full list of tips, listen to the episode of Money, Faith and Finance in the player above, in the Hope 103.2 app or wherever you get your podcasts.
Article supplied with thanks to Ben McEachen. Ben is Hope 103.2’s Mornings host. Ben was a full-time movie reviewer for more than a decade, including for Open House, The Big Picture, The Advertiser and Empire. Before Hope, he was deputy editor of Eternity News.
Feature image: Photo by CanvaPro