Helpful hints

Money saving ideas

Spend wisely

Not all of us have savings - but we all need to spend, and shopping is one area where it’s possible to make big savings.

Don’t treat shopping as a leisure activity. Visiting the shops less often will trim your spending. Or shop over the internet. You may pay delivery charges but you could save on petrol, and it’s harder to impulse buy.

Visit these links for some money saving ideas:

At the supermarket

The average household forks out around $153 each week on groceries, which, at 17%, is one of our highest categories of household spending. This makes the supermarket an ideal place to make savings. The top selling supermarket items include soft drinks, cigarettes and confectionery. If you can cut back on these, and trim your grocery bill by just $20 each week, you will have saved over $1,000 in just one year.

Retailers invest a lot of time and money into store layout to entice you to spend more. Here are some insights into how they do it – and how to avoid the trap of overspending:

  • Everyday items, like milk, are often located at the back of the store. You need to pass through aisles of other items (hopefully adding these to your shopping basket) before you reach them. To avoid impulse buying, head straight to what you want and move on to the check out.
  • ‘Complementation’ is when complementary items like coffee and biscuits are located together. To avoid buying more, prepare a shopping list and stick to it.
  • The end-of-aisle racks in supermarkets often give the impression of offering bargains. This is not always the case. The cheapest goods are often found on the top or bottom shelves.
  • ‘Generic’ or house brands are usually cheaper than named brands. For regular household items, like sugar and flour, there is often little difference in quality, and the savings can be substantial.
  • Watch price scanners at the checkout and check your receipt. If you are overcharged on the shelf price, you are entitled to a refund.

Saving on big-ticket items

A good rule of thumb when buying big-ticket items, like furniture, is never to pay full price. Either wait until there is a sale, or ask if you can buy the floor stock. There are other ways to save too:

  • Always shop around for the best deal. It may take time, but it could mean big savings.
  • Consider liquidators’ auctions. The goods being auctioned are often discontinued lines and the savings can be substantial. It is a case of ‘buyer beware’ though – you may have no recourse if the goods are faulty.
  • Tell retailers you are comparing prices. You may be offered a discount or some other sweetener.
  • Retailers love cash. They pay a fee if you use your credit card, so by offering cash you should be entitled to a discount.
  • Think about using lay-by – it will keep your debt levels manageable.
  • Read the fine print on any purchase contract you enter into. Once you sign a contract you are bound by the conditions contained in it, and not all contracts are standard.

To compare the cost of using different types to purchase big ticket items, take a look at “ Types of credit ”

Around the home

  • Planning ahead is one of the best ways to make savings. Plan your family’s meals for the week to avoid last minute rushes to costly corner stores.
  • Reduce your energy bill. Look for the energy rating label on new appliances – the more stars, the more efficient it is.
  • Trim your water bill – it’s good for your budget and you’ll be doing the environment a favour. Reducing showers from 15 to five minutes and installing AAA-rated shower heads can see you save around 1,040 litres a day or around $380 annually.
  • Organise a baby sitting pool with neighbours to save on child-minding and babysitting costs. To further cut back on entertainment costs, organise a picnic at a park instead of dining out.
  • Hobbies are good fun, but they can also be a way to increase your income. You may be able to make things and sell them, or even hold classes for others to learn your hobby.
  • Gifts are an area where people often over-spend. Buy discounted presents during the year, and store them until needed.
  • ‘Luxuries’ have a way of becoming ‘necessities’. Giving up a daily cappuccino, for example, could see you save over $700 a year – more if your partner has one too.
  • Not every purchase you make has to be for a new item. Huge savings can be made by purchasing near-new articles advertised for sale in newspapers, on the internet or at garage sales.
  • Form a buying pool with friends to get bulk discounts.

Dollars and sense

  • Before you hit the shops, make a list of what you will need for your food menus, as well as a list of gifts for each person with a suggested price range.
  • Credit cards are convenient for shopping over the internet, particularly if you want to avoid the Christmas crowds. Always shop at secure sites and keep a record of your transactions.
  • Allow plenty of time to do your Christmas shopping to avoid last minute purchases at expensive 'open-all-hours' stores.
  • Not all gifts have to be store bought. Home made gifts like potted plants can be an inexpensive alternative.
  • Chase shopping opportunities. Purchase discounted gift items throughout the year and store them until Christmas. Or take advantage of lay-by specials where the retailer holds the goods for you until Christmas Eve.
  • Some financial institutions offer 'Christmas Club' savings accounts. These are a good way to avoid taking on debt for Christmas shopping, but the interest rates are generally low. Consider putting your money into an online bank account. They pay high rates, are generally fee-free and your money is at call.

Christmas spending

The Christmas New Year period means increased spending for many of us. We get caught up in the spirit of Christmas - spending on gifts, holidays and food - and more often than not, it is our credit card we turn to as a means of meeting these extra costs.

Credit cards are a convenient way to pay for Christmas purchases, but it is important not to spend beyond your means at this time.

It is important to draw up a budget for your Christmas New Year spending – and stick to it. Managing your Christmas spend becomes an even more disciplined process when you have more than one card to choose from in your wallet. With around 30% of people having two cards and 13% having three or more cards, Christmas and the post-Christmas sale period can be very tempting.

Here are some tips to help manage your credit card this Christmas:

  • Before you hit the shops, make a list of what you will need for your food menus, as well as a list of gifts for each person with a suggested price range.
  • Credit cards are convenient for shopping over the internet, particularly if you want to avoid the Christmas crowds. Always shop at secure sites and keep a record of your transactions.
  • Allow plenty of time to do your Christmas shopping to avoid last minute purchases at expensive 'open-all-hours' stores.
  • Not all gifts have to be store bought. Home made gifts like potted plants can be an inexpensive alternative.
  • Chase shopping opportunities. Purchase discounted gift items throughout the year and store them until Christmas. Or take advantage of lay-by specials where the retailer holds the goods for you until Christmas Eve.
  • Some financial institutions offer 'Christmas Club' savings accounts. These are a good way to avoid taking on debt for Christmas shopping, but the interest rates are generally low. Consider putting your money into an online bank account. They pay high rates, are generally fee-free and your money is at call.