MONEY is one of life's greatest tools. It can buy convenience, freedom, fun experiences, memorable events, and all sorts of things that make life more comfortable.
But it also can also be frittered, scattered, lost, wasted or spent on big-ticket items that have small-ticket value.
Why spend so much of your life working if you don't use your earnings in a way that makes you most happy?
Household living costs are rising sharply, so it's time to stop and look at how you spend your money. You may be wasting a lot, so here's a list of 50 ways to save it.
PERSONAL FINANCES
1. Before you can save you must work out how much money you have and how you spend it. You need a realistic budget. Budgeting tools are available at all bank websites.
2. Do a credit card check. Visit infochoice.com.au or canstar.com.au to find out if there are better offers. If you want a credit card with a rewards program, expect to pay for it with interest rates around 20 per cent.
4. If you can control your credit card use, don't stop using it but be smart, AMP financial planner Tony Rigby says. A good loyalty program can give you some nice rewards.
5. Be wary of using a redraw facility for everyday bills unless you are making extra repayments. It makes no sense to pay off quarterly council rates bills over a 30-year loan.
6. Check out a mortgage offset account. Non-bank lenders, credit unions and building societies can often be cheaper than many of the big banks.
7. Package all personal finance accounts under one roof to get a fee discount.
PROTECT YOURSELF
8. Check your credit file. Banks, retailers and credit providers use the data to determine whether to lend you money, and errors on the file can cost you. Phone Veda Advantage on 1300 762 207, or visit mycreditfile.com.au.
9. With home insurance, you can often lift your excess to reduce the premium, says Ian Berry Insurance spokesman Paul Modra. Just be aware that if you have a claim, you have to cop the high excess.
10. Read the policy to see what you are covered for and what is excluded. Most insurers will only offer a replacement to the agreed value.
11. Look at combining policies with one insurance provider. "You may then be eligible for a multi-policy discount," Modra says.
12. Do not treat your insurance renewal as simply another bill. Compare and possibly save with another insurer. Update your policy. ASIC says 80 per cent of people are under-insured.
13. Having income protection insurance is vital. Life insurance is cheaper through your super fund.
14. Financial advisers can make big commissions out of life insurance, so ask for disclosure before buying a policy.
CONSUMER TIPS
15. Mobile phone charges are competitive and change frequently, so review your call spending and check with your telco for a better deal. Consider a mobile cap plan, but beware of higher calls charges.
16. Store charge cards have high interest rates worse than most credit cards. Always pay them first.
17. Use cash or debit cards instead of credit. Cash may make you think twice about breaking a $50 note.
18. Reduce the number of credit cards you have. Police Credit Union marketing manager Christie Brock says this will save on fees and maximise rewards program benefits.
19. When shopping with your card, try to use the "credit" option where possible, says Brock (pictured). "This can save on transaction fees."
HOUSEHOLD
20. Don't buy lunch, take your own. Make your own sweets and puddings, and make your own cleaning products from vinegar and bicarbonate of soda.
21. Set airconditioners to 24C and consider home insulation. Take four-minute showers or less. Use the bath infrequently to save water and install a water tank.
22. Use energy-saving light bulbs and only illuminate areas where you need light.
23. Don't pass up a good cup of coffee but avoid expensive takeaways. Buy a coffee plunger. At $15 for a bag of your favourite coffee, you'll get about 21 cups from it, saving about $50.
24. Buy birthday and Christmas presents early, perhaps during the mid-year sales.
25. Don't take your children shopping, as it can end up costing you money.
26. Try shopping online and don't be swayed by merchandising stands.
27. Always haggle when you are out shopping.
28 .Why are you paying for expensive obstetric cover with your health fund if you are not planning to have children? Go online to iselect.com.au and compare to see if you are getting the best rate available.
29. Ensure fridges run well as they account for a large portion of a household's energy use because they are always on. A top star-rated fridge can save up to $450 over its lifetime.
30. A half-filled dishwasher uses the same amount of energy as a full load, so fill it to capacity before each wash cycle.
31. Microwaves and pressure cookers are more energy-efficient than ovens. Thaw frozen foods fully before cooking, and keep the oven door closed.
32. When cooking vegetables, use only enough water to create steam. Select the correct pot size for your hotplates. Cook with the lid on. Use a kettle to boil water instead of the saucepan.
33. Use energy-efficient whitegoods. Fit an AAA-rated low-flow shower head. Fix leaking taps. They can waste hundreds of litres of hot water. Use cold water in the laundry when possible.
34. Use a monthly power equal-payment plan to ease the pain of paying bills. To do this, Work out your average spending using previous bills, add 10 per cent to cover increased costs, then set up a monthly direct debit to the utility company.
35. Do the same with your telco or consider paying an extra $5 or $10 a month to your phone company.
TRANSPORT
36. Your car is a huge drain on finances so choose the model wisely. Use supermarket petrol discount coupons.
37. Don't accept the first insurance quote you get for your car. Compare prices for compulsory third-party policies offered and at rego renewal time.
38. Maintain your car. Have the motor oil, oil filter and air filter changed regularly. Avoid hard acceleration and braking when driving.
39. Walk instead of taking the car. If you regularly use public transport, buy a weekly, monthly or quarterly ticket. Avoid taking taxis.
40. Car pool to work. If your child plays in a team, organise a driving roster among the parents. In the CBD, use free bus services.
GARDENING
41. Plant what you like to eat. Start with the easy-to-grow vegetables. Water and weed often.
42. Visit recycling depots for timber and ironwork. Make a compost bin. Plant fruit trees, citrus and pawpaws. Get a worm farm. Take home cuttings from established trees.
SHOPPING
43. Over-60s should ask for a seniors discount everywhere they go. Look for vouchers that give you extra discounts, such as hotdockets.com.au.
44. Buy cleanskin wines. There are some good-quality varieties around. Brewing your own beer saves money. A beer kit and concentrate from Coopers Brewery produces 23 litres of beer for about $18, compared with $100 to buy a similar volume of commercial beer. Befriend your local bottleshop manager who may sell you a cheap carton when it is getting close to its use-by date.
45. Don't buy milk at the service station it's much more expensive.
46. Write a grocery list and be selective. Buy your groceries in bulk. Private labels or no-name brands are generally much cheaper at the supermarket.
47. Eat before you shop. Don't go shopping if you are depressed you spend more on the wrong things. Scanner errors are common, so keep a close eye at the checkout.
48. Gym memberships average $20 a week so unless you are a regular, it is not value for money. Get walking, because it's the cheapest exercise. If possible, don't buy bottled water tap water is free.
49. If you're thinking about a holiday, the internet has last-minute hotel deals, but airfares are cheaper in advance. Book online to get discounts. Flying mid-week is cheaper.
50. Self-catering is an affordable option for travellers, but camping is the best budget holiday. CBD hotels can often be very cheap over Christmas and Easter.
Read more: http://www.news.com.au/money/money-matters/ways-to-slash-household-costs/story-e6frfmd9-1226069887471#ixzz1OYgm0Tsn
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