The world has been thrown into economic uncertainty by the coronavirus pandemic rearing its ugly head this year. Job losses and a general lack of consumer confidence make this an ideal time to actively seek out ways to make savings on your everyday expenses.
Maybe you need a little extra cash now? Or perhaps you are keen to save for a rainy day in the future? Either way, these top money-saving tips for 2020 will help you get ahead.
1. Hibernate as much as possible during this time
Staying home whenever practical is not only a good strategy to keep you COVID-safe, it can also be a significant money saver too.
2. Get reminded about upcoming contract renewals and bills
Download the free GetReminded app and be prompted to renew your contracts and pay bills on time. Avoid late fees and take the opportunity to shop around for the best deal at the time your contracts are due for renewal. Get reminded when it matters and potentially save hundreds or even thousands of dollars a year on your everyday expenses.
3. Shop around for the best deal
On-going expenses like your insurance, mortgage, mobile phone and internet contracts add up, and when combined represent a significant proportion of household income allocation.
The team at MoneySmart.gov.au suggest you do your research before you sign up for a financial product like a credit card or loan.
“Make sure the product is right for you and that you’re getting the best deal. For example, choosing a credit card with a lower interest rate and fewer fees can save you a lot. Similarly, when it’s time to renew your insurance, compare premiums with other providers online. Your current insurer may offer to beat competitors’ offers if you stay.”
4. Remember, everything is negotiable
As the consumer, you decide which businesses you enter into contracts with. It’s good to remember that you have the right to negotiate and often it may be as simple as asking the question, “Is that your best price?”
Choice suggests that before you start bargaining, research the market and see what competitors are offering so you have an idea about what you want, what a reasonable price would be and any reasons that might persuade a seller to offer you a special deal.
5. Set up a separate savings account
Out of sight, out of mind. Set up a separate savings account, with regular direct deposits and you may be surprised how quickly your savings balance increases.
ANZ suggests that “Once you’ve set up your savings account, you may want to take an extra step: hide the account from view in online banking. Then when you log on to your online banking to pay a bill or check your credit card balance, you don’t see your savings account and you’re less likely to use it.”
You can also potentially accumulate interest on money kept in savings accounts. Cents add up to dollars.
6. Set a savings goal and save with purpose
That new laptop, the annual family week away at the beach, school fees or the emergency fund safety net….whatever you are saving for, having a goal and a clear reason to save helps you achieve more.
“Your savings goals help you define what’s important to you. When you know your priorities, saving money is no longer a sacrifice. It’s a matter of setting priorities. It’s a matter of deciding what you want more. It’s making a choice not a sacrifice,” said Tip Yourself’s Mike Lenz.
Disclaimer: This information is meant as a guide only and should not be taken as legal or financial advice.