10 simple ways to save money, without realising you’re doing it

Cathie Oddie went from having a debt and zero savings to being debt free and readying for her first holiday in years. See how she did it.

Cathy Oddie found herself in $70,000 debt with zero savings, thanks to years of financial abuse.

Eight years later, the 43-year-old is debt free, and has saved enough money to her first holiday in 10 years – despite the rapidly increasing cost of living.

“It is definitely a challenge to save money right now as the prices of everything have increased significantly and it makes it harder to maintain a savings buffer-zone,” Ms Oddie said.

The domestic violence practitioner from Victoria was able to achieve this without a significant impact on her day-to-day life, thanks to some clever savings hacks, including opting not to claim the tax-free threshold.

“This means I pay a higher tax rate than necessary, however this enforced savings measure means I get a great lump-sum paid into my bank account when I do my tax return,” Ms Oddie said.

She also makes sure to scan her customer rewards cards whenever she purchase items, and downloads the relevant apps and activates any bonus points.

“Through doing my normal grocery shop at Coles over 12 months, it means I have $400 each Christmas to use as Flybuys Dollars back towards purchasing groceries or buying presents,” she said.

“It was a massive and emotional achievement last year to make my final repayment on the debt, as well as to have saved enough money to take my first holiday in 10 years.”

Cathy Oddie uses clever savings hacks to get ahead without impacting her day to day life

According to experts, there are many ways you can cut back and save, whether you earn $50,000 or $500,000 per year, without even realising you’re doing it.

“Really, it all comes down to individual mindsets and core beliefs about money,” financial advisor Rebecca Maher said.

“So long as expenses don’t exceed income, there’s room to stash some away.”

AUTOMATE YOUR SAVINGS

When it comes to spare cash, it’s often a case of if we can see it, we will spend it, regardless of the amount.

The best way to save your spare cash without feeling the pinch is to transfer that money into a separate account as soon as you get paid.

You may only have $5 to spare, or you may have $50. Whatever it is, have it transferred out of your everyday account as soon as possible, finance coach Damien Petkovic said.

“This can be asking your employer to split your pay across two bank accounts – your everyday account and your savings account – or setting up scheduled transfers from your everyday account to your savings account for the day you get paid. Don’t attach a card to your savings account so you’re not tempted to spend it,” Mr Petkovic said.

CONTROL YOUR SPENDING – LITERALLY

Sometimes spending is a little too hard to resist, which is why you don’t have anything left to stash away.

Ms Maher suggests introducing some friction to your typical purchasing behaviour.

“For example, if you Uber too much, delete the app. You might download it again Friday night, but you might not too.

“Trial a new behavioural challenge like a mid-week shopping ban. This means instead of impulse purchasing on your lunch break, or from the couch on your phone at night, you’ll have to wait until the weekend.”

Put the money you don’t spend into a separate account at the end of the week.

Founder and managing director of Money Happy, Rebecca Maher.

MAKE MICRO INVESTMENTS

Most people think investing requires a big lump sum and a lot of spare cash. But according to Chris Brycki, founder and CEO of Stockspot, you can set up an investment portfolio for your children with $100, and a monthly investment of just $50.

“You can contribute as little or as much as you want. It really depends on your personal circumstances,” Mr Brycki said.

“Every dollar counts and if you are investing for the long-term, even a few dollars can have an impact years from now. For instance, $2000 invested for 20 years at 8 per cent will turn into around $9854. But add $100 per month to that and you’ll end up with closer to $69,148.”

Sharesies also has an auto-invest feature where all you need to do is pick an

order and the amount you want to regularly invest, and auto-invest will place the orders for you.

CHANGE YOUR BEHAVIOUR

Are you always running late, causing you to grab a coffee on the way to work? Maybe you are staying late in the office, and ordering takeaway when you come home? Whatever your financial vice might be, acknowledging these bad habits is the first step towards change.

“By investing in a to-go mug and a little coffee machine, you can avoid the Starbucks orders,” financial advisor Simon Mikkelsen said.

“Once you realise how much you spend on coffee and takeaway, you will realise how much you spend on other things, and start changing your habits around those.

“As you adjust certain aspects in your life, you will see the impact it has on your finances, without you even noticing it.”

BARGAIN WITH YOUR BANK

“Right now, calling your bank and telling them you’re thinking of leaving and taking your mortgage with you is probably another quick win in terms of saving more money each month without too much hassle,” Ms Maher said.

“Banks are looking to keep their customer base so looking for interest rate savings on your biggest debts is a quick way to introduce several hundred dollars back into your pocket each month.”

MAKE USE OF ROUND UP APPS

Just like tossing your coins in a jar, you can put your digital spare change to work by rounding up your daily purchases with apps such as Raize or Wisr.

“This app rounds up your purchases to the nearest dollar, putting the difference aside to pay down your debt or bolster your savings and reach your goals faster,” Wisr’s Dr Lili Sussman said.

Wisr’s Dr Lili Sussman.

CONSOLIDATE YOUR DEBTS

Consolidating all your debts into one can help you simplify what you need to do and help you make payments on time, as well as save you money on fees and charges – which you can then save.

“The first thing to do is compare rates with different lenders and be aware you have options beyond the major banks,” Dr Sussman said.

“Digital lenders like Wisr, which focus on customers’ financial wellness, have unique coaching apps and services beyond lower-rate lending that encourage and support you to pay back your loan quickly – without penalising you with extra fees.”

BREAK UP YOUR BILLS

Bill shock can be one of the biggest roadblocks to your savings goals. You might be putting some money aside, only to have it disappear when a big bill comes along.

One way to avoid this is to arrange weekly or monthly payments with your bill provider, that way you’ll be able to keep any money you’ve been able to stash away.

CASHBACK APPS

The cashback concept has been around for a long time, but for most of us, it’s fallen into the too-hard basket.

Well, not it’s not so hard, thanks to apps that do the work for you. Cashback apps, such as Shopback, allow you to make purchases directly through the app, with any cashback offers going directly into your account, which you can then use for future shopping, or cash in.

Sharesies country manager Brendan Doggett.

SET REALISTIC GOALS

“You do need to form realistic goals and money habits to help you actually achieve them. Step one is to gain visibility over your finances and set your intention,” Sharesies country manager Brendan Doggett said.

“If this means inputting regularly into a budget planner, moneysmart has a great template you can use.

“For bigger goals like a $20,000 car, it can be useful to break this into a smaller goal such as $5000 a year.”

So, if you are looking to build savings and ultimately wealth over the long term, Ms Maher said examining your stories about money would allow you to unravel the attitudes and behaviours that prevent you from saving more.

“Giving the strategies you put to work a greater chance of success.”

Originally published as 10 simple ways to save money, without realising you’re doing it