Find out how to save money every day and make a savings plan to stay on track.
Separate and automate your savings
An online savings account is a great way to grow your money faster. Unlike a transaction account, you can’t spend money directly from a savings account. So it's harder to dip into your savings.
Automate your savings
Transfer part of your pay into your savings account. Ask your employer to do this for you, or set up a transfer from your transaction account. This way, you're saving without having to think about it.
Round-up transactions
Some savings accounts or apps let you round-up your daily spending to the nearest $1 or $5. The change then goes into your savings account.
For example, James buys a coffee before work each morning:
- The coffee costs $4.50.
- His transaction account is charged $5.
- 50 cents goes into his online savings account.
This adds $10 a month to his savings.
Look for ways to reduce spending
Look at your expenses to see what you can change or where you could get a better deal. It may surprise you how little things add up.
Find quick wins
Go through your bank or credit card statements for the last two months. Look for anything that isn't essential. This could be things like subscriptions or memberships you don't use much.
Reduce your grocery bills
To reduce your grocery bills:
- Plan ahead – plan meals weekly, including lunches and snacks. Check your pantry, fridge and freezer. Make a shopping list and only buy what you need.
- Meal prep – prepare meals or ingredients in advance. Freeze extras for later.
- Shop online – stick to your list and see what you're spending as you go. Click and collect to avoid a delivery fee.
- Buy on special – look for cheaper brands. Frozen vegetables are nutritious and may cost less than fresh.
- Compare unit prices - check the unit price (for example, the price per 100g) under the main price. Then compare the price and value of similar products.
- Go seasonal – save by buying fruit and vegetables in season, shop at your local fresh market or grocer.
- Eat less meat – try to buy meat when marked down at end of day. Or go to your local butcher. Plan some meat-free meals.
- Buy in bulk – buy staples (like rice, oats, flour) when marked down. Or buy bulk amounts with your neighbours or friends.
- Grow it yourself – get your family involved in making a herb or vegetable garden together.
Reduce your electricity bills
To reduce your electricity consumption and your bill:
- Heating and cooling – only heat or cool the room you're using. Open or close blinds to help control the temperature inside. Adjust your air conditioner to an energy-efficient setting. Block draughts to avoid leaking heat (for example, put a door snake against the door).
- Laundry – run your washing machine with a full load. Use cold water in your machine where possible.
- Appliances – use energy-efficient appliances or lights, if you can. Try to use appliances outside peak times when tariffs are lower (check your bill to see when it's cheaper).
- Turn off when not in use – turn off 'vampire appliances' at the wall, to avoid wasting energy. These include gaming consoles, anything with 'standby mode', and phones at full charge.
Swap to cheaper options
- Gym memberships – look for no-cost classes or running groups in your local area. Or try free online workout videos or fitness challenges.
- Streaming services – choose one and cancel the rest. Use free streaming channels or apps.
- Food delivery – try creating a take-out meal yourself at a lower cost.
- Eating out – instead of eating at a restaurant, have a picnic or BBQ at the beach, park or someone's house.
- Holidays – consider holidays with no air travel, like camping or day trips from home.
- Transport – try car-pooling or ride your bike instead of taking public transport.
Shop around for better deals
- Electricity and gas – compare energy suppliers to get the best deal. Use the Government's Energy Made Easy website. Or Victorian Energy Compare, if you're in Victoria.
- Insurance – when it's time to renew, compare premiums with other providers. See if your insurer will match a quote from another provider. Ask for a discount when you group your policies (like car and home). For tips, see choosing car insurance or home insurance.
- Internet and phone – review your monthly usage over a 12-month period and find a plan that suits your needs. You could be paying for more than you use, so look for cheaper options. Ask your provider to give you a better deal to stay.
Have a savings plan
The secret to saving is to start early and save often. Create a savings plan so you can manage your money and stick to your goal.
Know where your money is going
Have a clear picture of your regular expenses and spending habits. This helps you see where you can cut back and save. For tips, see track your spending.
Start a budget
Once you know how you're spending your money, you can set a realistic budget. Your budget will help you to stay on track, review your progress and reach your money goals sooner.
To get started, see how to do a budget.
Set a savings goal
Setting a savings goal helps you stay focused. It doesn't matter how big or small your goal is, work out how much money you need and make a start.
Set your savings goal now
Use the savings goals calculator
Pay off some debt
If you can, make extra repayments towards any credit card debt or loans you have. Paying off your debts sooner can save you thousands in interest.
For tips on how to prioritise and manage debt, see get debt under control.
FAQs
The experts we spoke to recommended taking these steps.
- Analyze your finances. If you want to save $1,000 in a month, then you need to earn $1,000 more than what you spend. ...
- Plan your meals. ...
- Cut subscriptions. ...
- Make impulse purchases harder. ...
- Sell unneeded items. ...
- Find extra work.
How to save $10,000 easily? ›
6 steps to save $10,000 in a year
- Evaluate income and expenses. To make room for saving, you'll need a meticulous budget that outlines all your sources of income and all your expenditures. ...
- Make an actionable savings plan. ...
- Cut unnecessary expenses. ...
- Increase your income. ...
- Avoid new debt. ...
- Invest wisely.
How to save up $5,000 dollars fast? ›
Ways To Save $5,000 in a Year
- “Chunk” Your Savings. The first step to saving $5,000 in a year is to break down your savings goal into manageable portions. ...
- Automate Your Savings. ...
- Save in a High-Yield Saving Account. ...
- Track Your Cash Flow. ...
- Boost Your Earnings. ...
- Declutter for Cash. ...
- Evaluate Your Subscriptions. ...
- Challenge Yourself.
How to save $20 K in 5 years? ›
While saving $20K might seem impossible if your budget is already strained, it may seem much more manageable if you break it down. “The most obvious, straightforward system is to save $4,000 each year or [approximately] $333 per month,” said L.J. Jones, financial planner and founder of Developing Financial.
What is the 50 30 20 rule? ›
The 50-30-20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should dedicate 20% to savings, leaving 30% to be spent on things you want but don't necessarily need.
Can I save $10,000 in 3 months? ›
For example, if you want to save $10,000 in three months, you have to mathematically work backward in both your spending and time budgets. Saving $10,000 in three months would have the following breakdown of what you must save during your timeline: $3,333 per month. $833 per week.
Why is it so hard to save money in 2024? ›
As Americans continue bearing the brunt of a higher-than-normal inflation rate and higher costs, saving money could prove to be more challenging than it was just a few years ago.
How much do I need to save a month to get $20,000? ›
“Saving $20,000 per year is about $1,667 per month or about $385 per week,” she said. “Thinking about it in smaller terms makes it less daunting of a goal.”
How much will I have if I save $300 a month? ›
If you invest $300 each month, that comes out to $3,600 over the course of a full year. And after 30 years of investing, that would total $108,000. But with the power of compounding, your portfolio's value could rise far higher than that.
How to save 10k in 3 months envelope? ›
On each envelope, write the day number and the amount you need to save for that day. For instance, on the first envelope, you would write "Day 1: $1" and on the second envelope "Day 2: $2", and so on all the way to Day 100: $100. Each day, you take the envelope for that day and put the designated amount of cash inside.
You can save over $5,000 in just over three months with the 100 envelope challenge. It works like this: Gather 100 envelopes and number them from 1 to 100. Each day, fill up one envelope with the amount of cash corresponding to the number on the envelope. You can fill up the envelopes in order or pick them at random.
How to save $5000 in 3 months with 100 envelopes? ›
The 100-envelope challenge is pretty straightforward: You take 100 envelopes, number each of them and then save the corresponding dollar amount in each envelope. For instance, you put $1 in “Envelope 1,” $2 in “Envelope 2,” and so on. By the end of 100 days, you'll have saved $5,050.
What is the $1000 a month rule for retirement? ›
The $1,000 per month rule is designed to help you estimate the amount of savings required to generate a steady monthly income during retirement. According to this rule, for every $240,000 you save, you can withdraw $1,000 per month if you stick to a 5% annual withdrawal rate.
How much is 10 cents a day for a year? ›
Ten cents a day is 36.50 in a year's time. A million dollars at only 1% interest is $10,000 in a year. This reminds me of a great Sesame Street scene.
How much is 50 cents a day for a year? ›
greg on X: "Saving just 50 cents a day will get you $18,250 in a year. Let that sink in https://t.co/aKvJe0Dj34" / X.
Is saving $1000 a month realistic? ›
If you start by contributing $1,000 a month to a retirement account at age 30 or younger, your savings could be worth more than $1 million by the time you retire. Here's how much you should expect to have in your account by the time you retire at 67: If you start at 20 years old you should have $2,024,222 saved.
How much will I have if I save $1,000 a month for 5 years? ›
In fact, at the end of the five years, if you invest $1,000 per month you would have $83,156.62 in your investment account, according to the SIP calculator (assuming a yearly rate of return of 11.97% and quarterly compounding).
How to turn $100 dollars into $1,000 in a month? ›
10 best ways to turn $100 into $1,000
- Opening a high-yield savings account. ...
- Investing in stocks, bonds, crypto, and real estate. ...
- Online selling. ...
- Blogging or vlogging. ...
- Opening a Roth IRA. ...
- Freelancing and other side hustles. ...
- Affiliate marketing and promotion. ...
- Online teaching.
How much should I save if I make $1000 a month? ›
First, it's helpful to start with a general guideline. The rule of thumb when it comes to how much of your income you should save is 20%.