Money Saving Tips Australia



Apr 3, 2023

Money Saving Tips Australia



Saving money is a money habit that every Australian should master in order to build wealth. Despite what many blogs and experts suggest, saving money is not always as simple as creating a budget and saving.  

Why? Because spending is often closely tied to your emotions and saving money often requires delayed gratification. It is often a decision to put money aside for the future rather than spend it today with the need to say “no”  and exercise your willpower.  

Whether you are saving for a wedding, a house deposit or an investment property, a holiday, bike or car, you can reach your savings goals sooner by adopting a saving mindset and becoming savings savvy with some simple habits. We’ve put together our top tips and suggestions to help you save more money and watch your savings grow.  

How to save money?

  1. Adopt a money saving mindset. If you are serious about saving money, you’ll need to make saving money a priority, over spending money. Shifting your focus to where you can save or spend less. Rather than seeing it as cutting back, you can choose to view it as being resourceful and savvy.  

  1. Become mindful of your spending habits. For many people, spending is automatic and habitual, often done without much thought. Being mindful of your spending means understanding your spending patterns and becoming aware of your habits and triggers to spend. Money can easily slip through your fingers if it’s not used intentionally. The best way to save is to become more mindful of what your spending habits are and where your money leaks may be.  

  1. Create a personal budget. Tracking your spending is a great way to understand your habits and find where you can make some savings. Once you have a budget in place, you can keep track of your spending against your budgeted amounts, to make sure you’re spending within your limits.  

  1. Look for ways to reduce expenses and cut back on unnecessary spending. Go back to basics and review your spending in needs vs wants. Our “wants” are the areas we tend to overspend, and impulsively shop. Your ‘wants’ spending category is often the easiest one to cut back on and save more money. Checking in to ask yourself is this purchase really necessary? Am I getting value from it? Can I reduce this spending or cut back?  

  1. Be money smart. To save more, look for deals and discounts and become a savvy purchaser. Doing research before buying to make sure you’re getting the best deal. Buying in bulk, using rewards cards and deals and shopping around are great ways to save more.  

Remember though - a saving is only a saving if you actually save the amount that you don’t spend. If you save money on a purchase, be sure to transfer that money to your savings account.  

How can I save a lot of money fast?

  1. Automate your savings with a regular amount direct deposited into your savings account. Consider boosting your savings using a round up feature to have the additional amounts automatically deposited to top up your savings account.

  1. Look to reduce or replace expenses. Choose one budget category to reduce. Challenge yourself to make it more fun. Get creative and look for ways that you can still enjoy things without spending as much money. I.e. you might choose to cut back on your entertainment, instead of going out two times a week, you might go out once. Instead of eating a restaurant with friends, you might choose to make a meal at home and ask them to bring a plate. Or instead of buying brand new books, look to borrow or swap them with friends or borrow them from the local library.

  1. Pay off debt - Debt represents our past purchasing decisions. When we carry debt, we are committing our future selves (and our future income) to pay off the purchases we made. A decision to pay off debt can be one of the best financial decisions you can make as it frees up your future money to spend, save and invest instead!  

  1. Connect to your savings goal. If you’re saving for something big, put some visual reminders in place to help keep you connected to your saving plan. You might like to choose a picture which represents your goal as your screensaver, or keep an image on your wall or in your journal. Change your password for internet banking, or keep a prompt in your wallet to remind yourself when you’re tempted to spend.  

  1. Make yourself accountable - when it comes to saving and working towards your financial goals, a little bit of accountability can go a long way to helping us stay on track. It can help to share that you are saving with your family and friends, so they can support you.  

What is the 50-20-30 savings rule of thumb?

The 50/30/20 rule is a general rule of thumb for allocating your budget according to three categories: needs, wants, and financial goals. It’s often used as a rough guideline. The guideline suggests allocating your budget accordingly: 50% to “needs,” 30% to “wants,” and 20% to your financial goals, but your actual percentages may need to be adjusted based on your personal spending and circumstances.

What is the best way to save money in Australia?

When it comes to saving - it can be helpful to separate your spending and everyday purchases and transactions from your where you keep your savings. Having a dedicated saving (or multiple savings accounts) .

One of the best ways to save money is by automating your savings. Organising a direct debit from your everyday bank account or transaction account to a dedicated savings account will help you to grow your savings. The best time to save is when you are first paid or receive your income so that the amount is put aside before you are tempted to spend it!  

Compare savings accounts, online accounts and other offers to find the most attractive interest rates and to make the most of bonus saver offers and utilise bonus saving accounts. Conditions apply to bonus savings accounts so be sure to read the Product Disclosure Statement to understand the product information, and the terms and conditions.  

How much does the average Australian save per month?

Have you ever wondered how much the average Australian saves? According to a survey of their customers, Westpac suggested that the average customer saved $22,020 in their transaction, savings and term deposit accounts as at 31 December 2021.  

Keep in mind though that when using average (mean) figures, these are usually skewed by some large deposit holders. So the report more realistically suggests that the actual savings figure is around $3,559 - the median but will change depending on the age of the saver.  

Want to see how you compare? Check out the table below which will give you a range between the median and average savings. SO if you’re 31, savings were typically between $3,007 and $7,995 pa as at the end of 2021.

Age Average Savings Median Savings
<17 $3,017 $2,729
18-24 $5,147 $2,828
25-34 $7,995 $3,007
35-44 $11,967 $3,075
45-54 $20,165 $3,499
55-64 $32,800 $4,119
65-75 $46,067 $4,951

Source: Westpac

What are the best money saving tips?

  • Cancel unused subscriptions - let’s face it, you’re likely to have at least one, or maybe even a few services you’ve subscribed to but don’t necessarily use often or get value from. Little amounts add up!  
  • Create an emergency account and keep this money in a separate bank account. By having money set aside it creates a safety net and will avoid a situation or the temptation to dip into your savings when an emergency happens.  
  • Buying in bulk items that you regular use. Household cleaning items, foods etc that can be cheaper if bought in higher quantities.  
  • Reduce food waste - shop for only what you need and be mindful of what you already have and can use in your pantry or refrigerator.  
  • Shopping only with a list is a great way to save money on your groceries and cut your grocery bill.
  • Planning ahead and meal planning is a great way to save on your grocery bill.  
  • Take water from home in a water bottle, rather than buying bottled water.  
  • Avoid the temptation to go grocery shopping when you are hungry!  
  • Look for free events and local events that you can attend - as a form of entertainment.
  • Don’t forget places such as beach, parks and walks, swimming holes and other public spaces that provide free entertainment.  
  • Consider second hand, rather than brand new. Check marketplace and other websites to see if you can buy the same or similar items for cheaper.  
  • Consider whether you can walk, ride your bike or take public transport instead of driving and paying for fuel or parking.  
  • Automatically save any pay rises you receive. Avoid lifestyle creep and the temptation to spend more because you have more.  
  • Take advantage of rewards programs including discounts and cashback offers.
  • If you have unused space, consider renting out a spare room, garage, car space etc. There are many apps to help you make money on your unused things.
  • Pay your bills on time or early to take advantage of discounts and avoid any penalties or late payment fees.
  • Review your car loan, home loan and personal loan to see if you can cut costs. Review your mortgage repayment, and use loan calculators to see if you can get a better deal on your loan rates. Check between fixed rates and variable rates on offer to get a better deal.
  • Review your car insurance, home insurance, private health cover and health insurance to compare options and save on the premiums.
  • Review your major expenses (i.e. your mobile phone plan) and establish if there are cheaper options or alternatives to your current spending.
  • Make the most of your spare change. Piggy bank, or round ups. It’s amazing how quickly you can reach your savings goals if you add these little amounts regularly to help you save money.
  • Remember your super fund is a great place to save for your retirement planning and longer term income needs.  


When it comes to personal finance, there is no one size fits all approach to saving money. Of the many savings tips find what works best for your personality, personal financial situation and spending habits.  

If you are unsure what financial product or savings product is best suited to you, we recommend you seek financial advice personalised to your financial situation. Many financial advisers can support you to create a savings plan, recommend savings tools and identify savings strategies to help you achieve your financial goals and savings goals and targets sooner.