21 easy ways to end up with more money in your pocket in 2021

Many cash conscious Australians will be hunting for simple ways to cut costs in 2021. Here’s 21 things you can do to save.

Cash conscious Australians are determined to squash bad money habits and turn over a new financial leaf in 2021. 

While many households suffered hits to their hip pockets during the pandemic, experts say now is the perfect time to wipe the slate clean.

New independent research from lender ME quizzed 1000 Australians and found COVID-19 forced 54 per cent to change their financial goals compared to previous years. 

Building up a rainy day account, saving up for a car, holiday or other major expense and tucking away a house deposit are top of the list. 

ME spokesman Matthew Read said the best way to put more money back in your own pocket was to “have a plan that’s thought through”. 

“People should review their financial products, compare and see if they can reduce their spending,” he said. 

“Make a new year’s resolution to reset your financial goals.” 

Wealth for Life Financial Planning principal Rex Whitford said the pandemic had created extra savings for many households, enabling people to turn New Year resolutions into reality.

“It’s action, not thinking, that makes a difference,” he said.

Mr Whitford said it was important to quickly reduce holiday debt sitting on credit cards or buy now, pay later schemes.

“There’s no point starting the year behind the eight-ball,” he said.

Here’s 21 ways to put more money in your pocket in 2021.

1. BEGIN A BUDGET

You won’t save money well if you don’t know where you’re spending it, so check recent bank statements to discover where your money goes. Then use a free online budgeting tool to monitor your expenses in 2021.

2. HIT HIGH-INTEREST DEBT FIRST

Your mortgage is cheap money, so always aim to pay off expensive debt such as credit cards or other short-term loans – which can charge 20 per cent or more interest. Once that’s repaid, more money can flow into your budget and other debts.

3. MEMBERSHIPS

Look through bank statements and highlight any recurring expenses such as memberships that you may no longer need, like the one for the gym that you’ve forgotten about. If you’re not getting good value, contact the provider to cease your membership.

4. CHECK YOUR MORTGAGE RATE

Home loan rates have never been cheaper – some fixed deals are less than 2 per cent. Check what rate you are paying. Unless you are on fixed rate loan where you can’t negotiate the rate, if it doesn’t have a “1” or “2” in front you’re getting ripped off. Speak to your lender’s home loan retention team and demand a better deal.

5. PAY BY DEBIT, NOT CREDIT

This is one of the easiest ways to avoid running into trouble – only spend money that you actually have. Racking up credit card debt is expensive so avoid it if you can’t afford repayments within the interest-free period.

6. POST-CHRISTMAS CLEANOUT

Use Gumtree, eBay or other online marketplaces to make quick cash by selling unwanted goods. Gumtree research found in 2019 Australians received 19.3 million unwanted gifts and most households have thousands of dollars of unwanted items sitting in sheds and cupboards.

7. CHECK PRIVATE HEALTH INSURANCE

Premiums are jumping by an average of 2.74 per cent on April 1, which will add up to $174 a year. Check your policy and see if you can make savings by getting better-suited cover or switching providers.

8. SHARE YOUR SPACE

You can make money by renting out your carparking spaces, spare rooms, sheds, caravans, swimming pools and many other things using a fast-growing range of online platforms.

9. PAUSE BEFORE BUYING

Any time you plan to make a non-essential purchase, give yourself 24 to 48 hours to make sure you really want it. Ask yourself if the money could be better spent on something you want more.

10. START INVESTING AUTOMATICALLY

Regular deductions from your wage into a share portfolio or investment fund account will quickly add up, and soon you’ll be earning income on your income and harnessing the power of compound interest.

11. CONSIDER ETF INVESTMENTS

Exchange-traded funds deliver exposure to a wide range of assets in a sharemarket index or country and are favoured by investment gurus including Warren Buffett. They are low cost and can easily be bought through online stockbrokers.

12. DIAL UP PHONE DISCOUNTS

If you’re stuck on an old plan, review it and if you’re not locked into a fixed contract hunt around for a cheaper deal. Many smaller telcos – including Boost, Moose Mobile and Amaysim – run off the big three networks of Telstra, Optus and Vodafone – so consider these providers.

13. CONSOLIDATE YOUR SUPER

Having multiple superannuation accounts costs you more in fees and insurance. Log into the myGov portal and see if you have more than one account, then follow the online prompts to roll them into one.

14. EARN EXTRA INCOME

Start a side hustle using online platforms: it might be deliveries, driving or freelance work to use your skills in your spare time.

15. STREAMLINE GROCERY SHOPPING

Doing limited shops will curb your spending. Try to do one big grocery shop a week or fortnight and you should see the savings flow. Check out weekly specials at the supermarkets to get extra savings.

16. RING YOUR INSURANCE COMPANY

Home and car insurers often give the best deals to new customers, so do some online research on potential premiums before calling your provider to demand a better deal.

17. COMPARE BROADBAND COSTS

Australians are more connected than ever before so make sure you review your home broadband plan, using comparison websites such as whistleout.com.au.

18. FILL UP FOR LESS

Petrol price cycles operate in a majority of capital cities, and the difference between discount days and peak pricing can be 50c a litre. Change your mindset from filling up when your car’s empty to chasing cheap fuel.

19. THINK TAX NOW

Tax deductions shouldn’t be something you only think about in June or July. Wise spending on tax-deductible items now – and keeping all your receipts – can deliver a handy windfall in July.

20. CURB YOUR GIFT-GIVING

Buying presents can add huge pressure to household budgets. Speak with family and friends early to agree on a no-gifts policy this year – they may appreciate it too.

21. SAVE ENERGY

To keep cool in summer check the temperature you are running your airconditioning on. Keeping your air conditioner at 24 degrees on hot days can save you money – every degree lower uses 5 per cent more energy.