7 easy ways to save money in 2023

Easy ways to save money. Image: Krakenimages.com/Shutterstock.com

With interest rates on the rise and high inflation in early 2023 you might be on the lookout for ways to save a little extra money. Here are a few tips and tricks that might help you cut back on a few bills and make your hard-earned dollar stretch a little further.

1. Cut the cost of your grocery bills

The cost of the weekly grocery shop has been on the rise with the price of basic foods and non-alcoholic drinks up 9.5% in the 12 months to December 2022, according to monthly inflation figures from the Australian Bureau of Statistics (ABS).

The largest hikes were in dairy products up 14.4% across the year, and bread and cereal products up 12.9%.

But there are a number of tips and tricks you could try to cut the cost of your weekly shop.

For example, buy home-brands or bulk buy regular items when they’re on a reduced sale price. Plan your meals so you buy only what you need and opt for the cheaper “imperfect” or “ugly” fruit and veg. Choose seasonal produce where you can and check the price per unit of products.

Use a grocery comparison app, such as Frugl or WiseList. They compare the price of products at most major supermarkets in your area so you can see which is cheaper for the items you need. Websites such as Catalogue Offers and Shopfully can give you access to the latest supermarket catalogues for bargain offers.

If you could cut your grocery bill by even $10 a week that’s a saving of $520 across the year.

2. Use an app to score cheap fuel

Another big expense is petrol with automotive fuel up 10.8% in 2022, according to the ABS. One of the easiest ways you can save is to use a fuel price check app or website such as Fuel Map, MotorMouth or Petrol Spy.

Given fuel prices can vary considerably from day to day and from suburb to suburb, they aim to give you up-to-date fuel prices so you can see who’s got the cheapest price in your area.

For example, when Canstar checked recent monitoring by Motormouth we found price differences of up to 40 cents per litre for regular unleaded petrol in some localities.

If the average family car has a tank capacity of 60 litres, that 40 cents price difference equates to a saving of $24 on a full tank. If you filled up the car every second week, that could save you $624 per year.

You could try the 7-Eleven app, which allows you to search nearby 7-Eleven stations and lock-in the cheapest fuel price for seven days.

3. Automate your savings with a round up account

Many banks offer round up features on their transaction accounts. This rounds up your purchases to the nearest dollar and transfers the change to your savings account, so your savings are essentially put on autopilot.

So if you bought a $4.50 coffee each day, your account would be debited $5 and the additional 50 cents would go into your savings account. By the end of the year, you would save $182.50.

4. Sell your unwanted things

Whether it’s unwanted clothes, furniture, home decor, electronics, books, CDs and DVDs, you could make some serious cash by selling your pre-loved items online sites such as Facebook Marketplace, Gumtree and eBay.

A joint report by Gumtree and Planet Ark found 86% of Aussies have pre-loved, unwanted or unused items they could sell, with around 21 items per household. The report estimates households could make about $6,964 from selling their unwanted things.

Even if you were able to make half that amount, you could stand to earn $3,482.

5. Switch savings accounts

Most Aussies keep their cash with one of the big four banks, but they’re not necessarily the ones offering the best interest rate on savings accounts. If you switched to one of the top savings accounts on Canstar’s database, you may be able to earn more.

Some institutions may offer bonus interest rates for a short period of time if you start a new savings account with them, but check that the base rate you‘ll get after that bonus period ends is still better for you.

You can use the compound interest calculator on the Australian Government’s Moneysmart website to see what a change in interest rate would do for your savings.

For example, Westpac says a realistic figure for the average savings of its customers was about $3,559. If that was in a savings account with a 3.0% annual interest, after 12 months that would earn $108 in interest. Up the interest rate just half a point to 3.5% and that savings would earn about $127 in interest, an extra $19.

If you could add to those savings throughout the year, you could earn even more in interest.

If you are considering a switch though make sure you read carefully any Target Market Determination (TMD) and terms and conditions to make sure any new account suits your saving needs.

6. Review your energy bill

To help cut down your bill, there are a few different energy saving tips you could try, such as swapping to energy-efficient light bulbs and washing your laundry in cold water when you can.

It could pay to compare electricity providers to see if you can get a better deal elsewhere.

Compare electricity plans

7. Use cashback sites

If you want to earn money while you shop, try using cashback websites such as Shopback and Cashrewards. These sites are paid a commission from partner retailers when you make a purchase through them and part of that commission is then paid back to you.

The amount of cashback you get will depend on the retailer and the deals available at the time.

Another way to save could be to shop at secondhand outlets and charity shops.

When it comes to clothing, if you don’t think you’ll wear an item more than once or twice, such as an outfit for a special occasion or event, there are plenty of places you can rent clothing.