Save on the small stuff for a large financial windfall in 2019

From little savings can grow large piles of money. Its worth sweating on some of the small stuff if you want to grow your wealth significantly in 2019.

SMALL savings are the ticket to big improvements in your finances this year.

While many Aussies focus on big financial goals — such as buying an investment property or saving for a car or holiday — their lack of interest in the little stuff is potentially more costly.

It’s amazing how saving a few bucks here and there adds up to plenty over a year.

One of my workmates saved almost $800 last year by quitting daily coffees.

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I haven’t bought lunch at work for a long time, and my most common daily packed lunch is chicken, steamed vegies and a can of drink — costing about $3.50 because it’s brought from home rather than $10-plus. That’s an annual saving of at least $1500.

But if you’re sick of being told that you should cut out coffees and bought lunches, there are plenty of other ways to save on small stuff.

Maybe you regularly raid vending machines? Or splurge a little too much on groceries, entertainment or technology?

Small weekly savings might not seem much alone, but they add up significantly.

The Australian Securities and Investments Commission’s moneysmart.gov.au service says when plugging these “spending leaks” it’s best to only cut back on one or two things, rather than remove all the fun stuff.

Other small savings require no fun police crackdown.

Half a percentage point is not a large number, except when it’s taken off your mortgage. Research group Canstar’s latest figures show variable home loan interest rates currently range between 3.44 per cent and 5.93 per cent.

Lenders often have room to move, so it’s worth asking for an extra 0.25 per cent off your mortgage. That saving alone can be worth $50 a month on a typical mortgage and $600 a year.

COMPARE HOME LOANS

Other loans can deliver similar savings, while household bills such as electricity, gas, phone and internet can usually be reduced by shopping around. Comparison websites are a good starting point, but visit a few of them rather than just rely on one.

Petrol price cycles offer savings in many cities. If you can time filling up your tank with the cheap point in the cycles it can be worth $15 a week or almost $800 a year.

Modern costs such as cloud storage and other IT services can sneak up on us, and if they’re not being used properly they are probably wasting our money.

A good way to find annoying little costs is to check your latest bank records, often done easily online. As society becomes more cashless, this becomes more simple.

Examine one, two or three months of your spending and try to spot small areas of wastage.

Many people don’t realise just how much of their money is being frittered away on things they may have forgotten about — gym memberships, unused music subscriptions, or insurance bills that are simply left to roll over and rise each year without seeking a better deal.

Remember that every $20 a week you can save is worth more than $1000 a year. And that’s still a big number for most people.

@keanemoney