13 ways to save more than $3,500 a year around the house

Looking for ways to cut back costs? Here’s a room-by-room guide that could help you save thousands.

There’s no denying that life has become more expensive – we have the inflation numbers to prove it. The spate of rate hikes and soaring rents have further exacerbated the cost-of-living crisis. So, with many household budgets stretched to the max, finding ways to cut costs is a priority for many of us.

With that in mind, here are 13 ideas that could help you potentially save as much as $3,524 a year around the house. Let’s take a look room by room.

The kitchen

1. Ditch the second fridge

If you have a couple of fridges at home, ask yourself if you really need both. Running a second fridge could add as much as $144 a year to your power bill, according to numbers crunched by Canstar Blue. If you don’t typically fill up the second fridge, consider ditching it to save yourself some cash.

Cost of running a fridge by size

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Source: www.canstarblue.com.au – 29/05/2023. Average energy consumption figures based on refrigerators listed in the Commonwealth of Australia E3 Program’s Registration database. Electricity usage cost estimates based on the average electricity usage rate of 27.5 c/kWh. Average electricity usage rates are based on single-rate, non-solar only plans on Canstar’s database, available for an annual usage of 4,342 kWh.

Potential saving: Up to $144 a year

2. Use discounted gift cards

Keep an eye out for discounts on gift cards that you can use at the supermarket. Coles and Woolies sometimes have them on special. It’s also worth checking with your insurer, motoring organisation, energy or telco company to see if they offer the option to purchase supermarket gift cards for a discount.

Discounts can range from 1% to 10%. Assuming you scored a 10% discount, a $100 gift card would cost you just $90 meaning that effectively you’d be able to buy $100 worth of groceries for just $90. Do that regularly and the savings could really add up.

Let’s look at an example. Aussie households spend on average $152 per week on groceries, according to research by Canstar Blue. If you managed to save 10% twice a month using a discounted gift card you would add up to $360 a year.

Be sure to check any processing fees and find out if there are limits to how many gift cards you can purchase each year.

Potential saving: $360 a year

3. Buy ‘ugly’ fruit and veg

You might be able to save money by buying ‘ugly’ or ‘imperfect’ fruit and veg – after all, it’s what’s on the inside that counts. Sure, they may be misshapen or have a few marks but they taste the same, have the same nutritional value – and you could save as much as 30%.

You may be able to find these at your local supermarket – they are labelled ‘Odd Bunch’ at Woolworths and ‘I’m Perfect’ at Coles. There are also specialty providers such as Good & Fugly and Farmers Pick that allow you to buy full boxes of ‘ugly’ produce.

Let’s say you spend $40 on fresh produce each week and could reduce that by 10% by opting for ‘ugly’ versions, you could save $208 a year.

Potential saving: $208 a year

The bathroom

4. Install a low-flow energy-efficient shower head

Think about replacing your shower heads or taps with low-flow versions. Not only can it help you save money on water bills but your energy bills will be lower because less water will need to be heated.

Canstar Blue’s calculations show that a family of four could potentially save $400 each year on water bills alone by replacing a shower head that flows at 15L/min with one that flows at 5L/min. On top of that, there are potential savings on gas usage which can add up to $1,067 a year.

Impact of water-efficient shower head on water and gas costs

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Source: www.canstar.com.au – 29/05/2023. Water usage based on a family of 4 each showering for 8 minutes each day. Gas usage based on average energy consumption figures of instantaneous gas hot water heaters listed in the Commonwealth of Australia E3 Program’s Registration database. Cost calculations based on the average usage rate of 3.6 c/MJ (based on single-rate products on Canstar’s database, available for an annual usage of 36,305 MJ).

Potential saving: $1,467 a year

5. Time your showers

A long, hot shower can be relaxing but taking shorter showers can help you cut back on water and energy costs. Let’s look at a hypothetical example of a family of four who normally each take an eight-minute shower every day. If they all reduced their daily shower time to four minutes their household could potentially save $367 on water and gas heating costs. Consider buying a timer for the bathroom for everyone to use.

Impact of shower time on water and gas costs

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Source: www.canstar.com.au – 29/05/2023. Water usage based on a family of 4, using a shower head with a flow rate of 5 L/min. Gas usage based on average energy consumption figures of instantaneous gas hot water heaters listed in the Commonwealth of Australia E3 Program’s Registration database. Cost calculations based on the average usage rate of 3.6 c/MJ (based on single-rate products on Canstar’s database, available for an annual usage of 36,305 MJ).

Potential saving: $367 a year

6. Buy refills instead of new bottles

It may be possible to buy refills of certain items each time you run out rather than buying a whole new one. Hand wash is probably the most common example but you might also find refillable shampoo, conditioner and even air freshener.

The savings might not be huge but every little bit adds up. Let’s look at an example using hand wash. At the time of writing, a new bottle of Palmolive Raspberry Heavenly Hands Foaming Hand Wash costs $1.60 per 100ml but the 1-litre refill version costs just $0.85 per 100ml. Assuming you used 100ml a week, you could save $0.75 a week or $39 a year by using refills.

Potential saving: $39 a year

The laundry

7. Avoid the dryer

I know that popping your washing in the dryer may be more convenient than hanging it out but that convenience comes at a cost. If you can avoid the temptation of using the dryer, Canstar Blue’s number-crunching has found that you could potentially save $297 a year. That is based on six loads of washing each week.

Potential saving: $297 a year

8. Wash in cold water

Here’s an easy one – use cold water to wash your clothes instead of opting for a warm cycle. Each time you wash using hot water, it will cost extra to heat up the water, whereas cold water doesn’t require any heating. Canstar Blue’s analysis found that you could potentially save $70 a year by using cold water instead of warm. This is based on doing seven loads of washing a week.

If you have items that are very dirty or are stained you might be better off washing in warm water, but try to stick to the cold as often as you can to save money.

Saving from using a cold wash cycle on a washing machine

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Source: www.canstarblue.com.au – 29/05/2023. Average energy consumption figures based on 5-10kg capacity clothes washers listed in the Commonwealth of Australia E3 Program’s Registration database, which assumes 7 uses per week using a warm wash. Electricity usage cost estimates based on the average electricity usage rate of 27.5 c/kWh. Average electricity usage rates are based on single-rate, non-solar only plans on Canstar’s database, available for an annual usage of 4,342 kWh. Based only on washers that list both cold and warm wash usage.

Potential saving: $70 a year

9. Run full loads of laundry

I know it’s a nice feeling to have an empty laundry basket but it’s better for your hip pocket if you wait until you have enough laundry to do a full load rather than doing half loads. Canstar’s calculations show that doing three full loads of laundry each week instead of six half loads could potentially save you $45 a year.

Running full-loads vs half-loads in your washing machine

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Source: www.canstar.com.au – 29/05/2023. Average energy consumption figures based on 5-10kg washing machines listed in the Commonwealth of Australia E3 Program’s Registration database. Cost calculations based on the average usage rate of 27.5 c/kWh (based on single-rate products on Canstar’s database, available for an annual usage of 4,342 kWh; excluding solar only plans).

Potential saving: $45 a year

→ You may also like: 9 energy saving tips to reduce your electricity bill

The living room

10. Get the temperature right

I know it can be tempting to crank up the temperature on your air con in winter or dial it right down in summer but it’s not ideal from a financial point of view.

The harder your air conditioner has to work, the more electricity it will consume. That means the lower you set the temperature when cooling and the higher you set it when heating, the more you’re adding to your power bill. According to Canstar Blue, to ensure the maximum energy efficiency from your air con the optimum temperature is 25 to 27 degrees in summer and around 18 to 20 degrees in winter.

Let’s look at a summer example. If you set the temperature at 25 degrees instead of 21 degrees, Canstar Blue estimates you could potentially save $47.81 a year.

Impact of air conditioner temperature on cost

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Source: www.canstarblue.com.au – 26/05/2023. Based on Ergon Air conditioning calculator with 6 kW cooling capacity in use 4 hours per day, 13 weeks of the year.

Potential saving: $47.81 a year

11. Switch to LED lights

It might seem hard to believe but lighting accounts for 10% of the average household electricity budget in Australia. One way to reduce the cost of lighting your home is to swap out halogen light bulbs with LEDs.

According to Energy.gov.au, by replacing 10 halogen light bulbs with LEDs an average household can expect to save around $650 over 10 years on their electricity bill.

Potential saving: $65 a year 

12. Bundle your entertainment services

When streaming services were first introduced they seemed like an affordable option but the prices have increased over time and many of us aren’t happy with just one service so the costs can really add up.

One way to cut costs is to explore bundling. Some internet providers, for example, often throw in a free streaming service when you move to them.

Another example is OnePass, which gives you free delivery across Kmart, Target and Catch and Bunnings Warehouse, teaming up with Disney+. If you paid for the two services separately it would cost you $17.99 a month but bundle the two together and pay just $14.99 a month – a saving of $3 a month.

Then there’s Optus Sub Hub which is available to Optus customers. You can link eligible services to Sub Hub and they are rolled on to a single monthly bill. You can also score a discount. Add two subscriptions and you’ll save 5% on both. Add three or more and you’ll get 10% off each one. Some of the streaming services available through Sub Hub include Optus Sport, Netflix, Amazon Prime, Binge, BritBox and Paramount +.

If you bundled Optus Sport, Netflix, Binge and BritBox using Sub Hub you could save $22.20 a month – or $266.40 a year. The biggest saving comes from Optus Sport though which is normally $24.99 a month but just $6.99 a month when linked to Sub Hub.

Optus Sub Hub savings

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Potential saving: $266.40 a year

The bedroom

13. Unplug at night

It might seem extreme but unplugging as many things as you can when they’re not in use can help you save on electricity.

‘Standby power’ used by products such as microwaves, TVs and gaming consoles can account for as much as 10% of your electricity bill, according to Energy.gov.au. So unplug the TV, smart speaker, lamps, your computer (if it’s fully charged) and anything else in your bedroom. Do the same in other rooms around the house as well.

According to Canstar’s Consumer Pulse Report 2022,  the average quarterly energy bill amount is $371 which equals an annual bill of $1,484. Given that ‘standby power’ accounts for 10% of your electricity bill, turning off your appliances at the wall when you’re not using them could potentially save you $148 a year.

Potential saving: $148 a year

Cover image source: Krakenimages.com/Shutterstock.com