Five easy ways Australians can save $10,000 this financial year

AUSSIES will have their finances under the microscope as the new financial year kicks off, and if you’re keen to keep more money in your pocket, some simple changes could save you a small fortune.

SAVVY consumers can save themselves $10,000 in the new financial year by trimming the fat on their finances.

July 1 is the perfect time for consumers to review some of their biggest expenses hitting their hip pockets including home loans, credit cards and rising electricity bills.

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Customers should be reviewing the fees and charges on their credit card.

By simply reviewing the fees and charges on these deals customers can make mass savings, financial comparison website spokeswoman Kirsty Lamont said.

“A lot of us put off the thought of reviewing our finances because we think it’s time consuming and difficult,’’ she said.

“But the reality is it only takes a couple of hours and the savings that can be made from the time you put in really add up can help you streamline your budget.”

Certified financial planner Patrick Canion said it’s vital “customers hold their banks to account.”

“If you have a home loan that doesn’t start with a “3” then you need to be shopping around,’’ he said.

He said the easiest way to get a better deal is to find a cheaper offer by another provider and then phone up your existing provider and get them to match it or do better.

1. HOME LOANS

$350,000 30-year principal and interest loan

Best variable rate: 3.39 per cent, $1550 monthly repayments

Worst variable rate: 5.82 per cent, $2058 monthly repayments

Savings over 1 year by switching: $6096.

SOLUTION: All owner occupier borrowers they should be paying a rate with a “3” in front.

Switching doesn’t necessarily mean refinancing, it can be done by comparing deals and going to your existing lender and demanding the same offer.

Rising electricity bills are one of the biggest cost of living concerns for Australians.

2. CREDIT CARDS

The average card debt in Australia is $4200. Customers can repay their debt by using a zero per cent balance-transfer on a 12 month honeymoon deal.

Highest card interest rate: 24.99 per cent

Lowest card interest rate: 0 per cent

Savings: $589

SOLUTION: There are many balance-transfer deals allowing customers to switch from one lender to the other and reveal in honeymoon interest-free periods extending up to 26 months.

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3. ELECTRICITY BILLS

Highest household annual bill: $4238

Lowest annual bill: $1424

Savings: $2814

SOLUTION: Electricity bills can be a nightmare to navigate so customers should pull out an old bill and look at their supply and energy charges. Customers can reduce power bill pain by switching to a cheaper tariff and taking advantage of paying on time and direct debit payments.

Automatically renewing your car insurance premium can be one of the worst things customers can do.

4. BANK ACCOUNTS

Highest monthly account fee: $10

Lowest monthly account fee: $0

Savings: $120

SOLUTION: There are more than 59 no-fee bank accounts on Mozo’s database so there’s no reason any customer should pay account-keeping fees on their daily transaction account.

5. CAR INSURANCE

Biggest difference in the cheapest and most expensive annual car insurance quotes: $1087

SOLUTION: Make sure you compare car insurance before you renew your policy and never just auto-renew your cover because you’ll likely end up paying much more.

TOTAL SAVINGS: $10,706

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@sophieelsworth