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Our top money-saving tips

With the cost of living on the rise, find out how you can soften the blow to your hip pocket with our expert tips to save money.

money in back pocket
Last updated: 25 July 2022
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Checked for accuracy by our qualified fact-checkers and verifiers. Find out more about fact-checking at CHOICE.

If you feel like you're spending more and more just to get by, you're not alone, according to the latest consumer data from CHOICE.

Just over 90% of respondents told our June Consumer Pulse* survey they had seen their household bills and expenses increase over the last year.

Of the more than one thousand households surveyed, 51% thought their bills and expenses had increased "a lot" and 23% said they are struggling to get by on their current income.

This proportion of households struggling to get by was up from 18% in June last year. Concern about the level of disposable income was also up – now being felt by almost 3 in 5 households.

To help you hold on to more of this precious spending money, we've drawn on the breadth of our expertise to bring you our top tips on how to keep a lid on your cost of living.

How to save at the supermarket

Food and grocery prices continued to be a sore point in our latest consumer survey, with 84% of households concerned about how much they were paying at the checkout. All the more reason to start making savings with these tips:

1. Get better value by comparing unit prices

Unit prices break down the cost of a product into standard units of measurement, such as per 100 grams, and let you compare different products more easily. 

So look beyond the headline price of an item and see where you could be getting better value by comparing unit prices between different brands or different packet sizes.

2. Switch to supermarket-brand products

Our tests have found that supermarket homebrand products have improved in quality in recent years, occasionally even outdoing national brands in taste tests.

The even better news is that our latest basket survey found possible savings of up to 40% when shoppers switched to these products. 

CHOICE Tip: Our shopping basket survey reveals which major supermarket chains are cheapest overall.

3. Grab specials as they come up

Our supermarket surveys found very little price difference between the big retailers, meaning switching between them when each offers specials could go a long way in helping you save.

Keep track of discounts and special offers and be prepared to switch supermarkets to follow the bargains. You can browse catalogues or check online to see if what you're after is on special at a nearby outlet before deciding where to spend your money. 

Anxiety about the cost of food and groceries was at its highest in seven years

4. Look for product refills

More retailers are now selling products that can be refilled, which means you can save money and reduce the amount of environmental waste you produce. 

Our research found that these products can deliver average savings of 32% compared with just buying another pre-filled dispenser.

5. Avoid pre-cut food items

We've found that some pre-cut fruit and vegetables can cost up to five times as much per kilo as the unprocessed originals, not to mention leaving you with more plastic to get rid of.

So save by buying whole items, sharpen up your knife skills and learn easy ways to chop up your own vegetables at home with our guides to quick vegie prep.

6. Try different cuts of meat

Looking closely at price tags, you'll see that some cuts of your favourite meats will be cheaper than others.

For instance, we've found that chicken drumsticks can be up to three times cheaper than breasts, and that osso bucco and beef chuck steak are good value options when slow cooked.

Ideally, factor into your plan smaller, midweek supermarket shops for fresh produce, as buying these in bulk once a week can lead to more waste.

7. Buy frozen instead of out-of-season

If you're planning on buying fruit or vegetables outside their usual growing seasons, it's often cheaper to settle for the frozen options.

Although fresh produce can be good value when in season, at other times some items can get very expensive and buying them frozen will save you money.

8. Plan meals ahead, and shop smaller and more often

Take stock of what's in your kitchen and plan a meal menu in advance to avoid buying (and then wasting) things you don't need.

osso bucco

Plan your meals and use what's in your kitchen to avoid waste.

How to save in the kitchen

Once you get home from the shops, there are even more ways to save around the kitchen by being mindful of food storage and making wise investments in cost-saving appliances.

9. Keep food in the right place

Get the most out of the food you've just spent money on by storing it the right way. 

Tomatoes will stay flavourful for longer, and bread will go stale less quickly, if you keep them out of the fridge. On the flipside, keeping eggs in the fridge generally means they'll keep better and last longer. 

CHOICE Tip: Get more handy tips on how to save in the kitchen with our guide to food storage mistakes.

10. Switch to reusable wraps or containers

If you're someone who automatically reaches for cling wrap every time you need to put something in the fridge, consider reusable wrapping or plastic containers.

Using these instead of pulling out yet another sheet of disposable cling film will save your wallet and the planet.

11. Serve or preserve your leftovers

Make your leftovers tomorrow's lunch or let your freezer do some saving for you by stacking it with portions of larger dishes.

Learn how food offcuts could be quickly turned around and transformed into kitchen staples like stock with our guide to transforming food waste.

12. Get money-saving gadgets

A food processor is one of the best kitchen tools for saving money. It will let you avoid those expensive pre-cut food items and extend the life of foods such as bread, which can be blitzed into breadcrumbs.

Similarly, our analysis has found that buying a coffee machine will save you money in the long run if you're a café aficionado and a juicer will do the same for juice-bar regulars.

How to save on power

Our latest data shows energy bills are again causing headaches for households – 80% were concerned by electricity costs, the highest level in three years.

Avoid 'bill shock' and prevent rising power prices hoovering up more of your household budget than they have to with our tips and tricks:

13. Get more out of your everyday appliances

There are lots of ways you can save while using household essentials such as washing machines and air conditioners. These include washing only full loads of clothes, and keeping filters on driers and air conditioners clear of debris (which means they don't have to work as hard).

Check out our guides for washing machines, dryers, heaters and air conditioners for further tips on how to get more out of your household appliances.

14. Turn off power-sucking devices

The cost of keeping devices on standby, such as routers, printers and microwaves, can chip away at your bank account, sometimes to the tune of  hundreds of dollars a year.

Turn off devices completely by switching them off at the wall when you can, and pay attention to energy-efficiency labels to shave that bit extra off your power bill.

15. Renegotiate with your power provider – or find a new one

If you've already cut back on energy usage, but are still struggling to keep a lid on your power bills, consider renegotiating your plan with your provider – or finding a new one altogether.

Our guide to switching to a better energy provider explains how you can save by talking to your current retailer or, if that doesn't work, moving to a new one.

computer energy costs lead

Standby energy can cost more than you might think. Switch devices off at the wall when you can.

How to save in the car

Fuel remained the most concerning cost for households in our latest Consumer Pulse survey, with 88% of those we surveyed expressing concern.

High petrol prices may be unavoidable, but there are ways you can keep your motor running for less.

16. Compare bowser prices on apps

Check our fuel apps review to see which ones are best at helping you save on petrol in your region. 

Some state and territory governments, and a variety of third-party compilers offer this service, which can show the lowest prices at service stations near you.

Concern over the cost of fuel reached a record high in our latest Consumer Pulse survey

17. Plan your trips and don't speed

As well as potentially saving your life, driving slower can also save you money. Fuel consumption goes up dramatically once you start going over 90km/h, meaning you might have to stop off to refill your tank sooner than expected.

You can also save on fuel by not using your car for short trips. Cars use up to 20% more fuel when the engine is cold, so once you've started, try to do all your errands in one go.

18. Balance air conditioning and open windows

Turning on the air conditioning in your car can increase fuel consumption by up to 10%, so opening your windows could save some fuel costs when driving around town.

But if you're driving faster than 80km/h, an open window will cost you more due to aerodynamic drag, so air con might be better at higher speeds.

How to save on insurance

It's a 'grudge purchase' for many of us, but home, car and health insurance can be vital when we need it.

That doesn't mean it needs to be unbearably expensive and there are several ways you can get some peace of mind for less.

19. Find out if you actually need private health cover

Private health insurance is essential for some, but Australians have been giving it up in droves in recent years, and we recommend only stumping up for health insurance if you have to.

That said, taking out a policy can mean you won't have to pay as much tax as before, but this depends on your income.

CHOICE Tip: Take our Do I need health insurance? quiz before coughing up for a policy to see if it will actually benefit you financially.

20. Look for cheaper health cover

We've found that people with private health cover could save up to $935 a year on hospital cover by switching to a similar policy with a different insurer.

There are hundreds of dollars' difference among providers, meaning you could make big savings if you shop around.

21. Get no-claim and restricted driver discounts on car insurance

Some insurers will discount your premiums if you agree to restrict the use of your car to nominated drivers or those over a certain age.

Most insurers also offer a no-claims discount or safe-driver bonus, which could save you up to 70% if you go for a certain period of time without making a claim.

Find out more in our guide to buying car insurance.

22. Get insurance to match the value of your car

If your car isn't worth much, save money by getting it insured under a cheaper policy. In fact, it may be worth just getting cheaper third-party cover, which only covers you for damage you cause to other cars.

Sticking with the same insurer year after year can lead to you paying more in premiums

23. Working from home? Let your insurer know

As an insurance customer, you're obliged to update your insurer about changes to your circumstances. And if you're no longer going in to the office and instead working from home, you're lowering the risk of your house being broken into. On this basis, we suggest you ask your insurer to reduce your home and contents insurance premium.  

24. Compare your policy and avoid the 'loyalty tax'

Sticking with the same insurer year after year can lead to you paying more in premiums. So don't get stung for your loyalty and compare what you're paying with online quotes for new customers before renewing your policy.

womans hands typing on keybaord

If you're now working from home, your house is at less risk of a break-in. Check with your home and contents insurer if they'll reduce your premium.

Things to avoid if you want to save

Sometimes it's the things you don't do that can save you the most.

25. Getting fooled by dodgy household goods

From fridges with poor temperature control to TVs with tinny sound, there are a raft of everyday household goods that aren't worth their price tag.

Know which ones not to spend your hard-earned money on with our guides to the fridges, dishwashers, washing machines, TVs and stick vacuums that performed most poorly in our tests.

26. Taking out 'junk' basic health insurance policies

Taking out basic health cover just to reap potential tax benefits can seem tempting, but we've found these policies to be of poor value.

This is because they'll only cover you for emergencies (where you're likely to be taken to a public hospital anyway) and are only a few dollars cheaper than better-value policies.

27. Using wage advances and buy now, pay later (BNPL) schemes without secure finances

Services that let you get hold of part of your salary early are credit products, meaning you'll pay back more than you originally borrowed.

Consumer advocates have told CHOICE that they're concerned that these products, along with BNPL services, can create potential debt traps for people who are already struggling financially.

Instead of using these products to pay for an essential service, consider applying for the No Interest Loan Scheme

Instead of using these products to pay for an essential service, you could consider applying for the No Interest Loan Scheme (NILS). In the words of the government's Money Smart website, NILS gives people on low incomes "access to safe, fair and affordable credit. Loan amounts are up to $1500 for essential goods and services such as fridges, washing machines or car repairs".

28. Being afraid to haggle

While there are certain purchases where haggling isn't an option, on many larger transactions you will often find retailers have some discretion to reduce the price. When we were buying mattresses for our latest review we negotiated a cheaper price in more than half of the purchases, in one case knocking off almost 50%.

Learn how to do the same with our guide to haggling.

29. Paying for services you don't use

Signing up for a subscription to a streaming service is very easy, but if you're not careful you can end up paying for access you don't use. Do a review of those you're currently paying for and consider cancelling or downgrading those you're not getting value from.

Alternatively, you can be tactical with your viewing and only sign up to a service when it has something you want to watch and then cancel once you're done – you can always rejoin later.

Safety nets to help

If you find yourself being overwhelmed by bills, you're not alone. But there are free resources and services that may be able to help you. 

30. Talk to your provider if you're in trouble

If you're struggling to keep up with utility bills or insurance premiums, a good first step is to talk to the company billing you.

Many of these companies will have hardship policies for people doing it tough. Explain your situation and see if they can help you by setting up a payment plan or giving you an extension to pay.

If you're having trouble reaching an agreement with your retailer regarding energy or water bills, you can get support from your local ombudsman.

31. Speak to an independent financial counsellor for free

The National Debt Helpline offers free, confidential financial counselling to help people manage their debts and get their finances back under control. It's a nonprofit community service that's available to anyone in financial difficulty.

You can contact them via their website at ndh.org.au (where they also have resources for dealing with debts) or by calling 1800 007 007.

32. Explore your options for government assistance

State, territory and federal agencies offer various programs to help people on low or fixed incomes who are struggling to pay their bills.

Find your local authority and see if you're eligible for payments on the federal government's MoneySmart website.

About Consumer Pulse

*CHOICE Consumer Pulse June 2022 is based on a survey of 1083 Australian households. The data has been weighted to ensure it is representative of the Australian population based on the 2016 ABS Census data for age, state, gender, household income and education levels. 2021 Census raw data were not available at the time of analysis. Fieldwork was conducted from 13 to 28 June 2022.

We care about accuracy. See something that's not quite right in this article? Let us know or read more about fact-checking at CHOICE.

Stock images: Getty unless otherwise stated.