Top Ways To Cut Your Expenses And Boost Savings

Updated: Aug 5, 2019

Is the key to saving a home deposit as simple as giving up smashed avo toast for breakfast? Well, not quite, but spending less does make a difference.

On top of a budget and savings strategy, reducing or eliminating expenses is one of the most effective ways to save up for your next big-ticket item. Here are our top four tips to help you get started: 

Start by understanding your spend

It can be easy to lose track of how you’re spending money, especially due to cashless payments and credit cards.

Many online banking systems include tools to categorise debits and track a budget – take advantage of them. Or download an app that helps you track your personal expenses on the go, such as those listed in our last blog: 5 Free Apps That Will Save You The Most Money In 2018

Find savings in the essentials

Some costs can’t be avoided – but many everyday expenses can be reduced. For example you could:

  • Move in with your parents/relatives, or move into a cheaper rental or share house (short-term discomfort can pay off in the long term).

  • Implement tactics like meal planning, making grocery lists and buying in bulk to save money on food. Set aside a budget for eating out/take-away and stick to it. Simply saving $40 a week can lead to a total saving of $2,000 in just one year!

  • Shop around to reduce your regular bills – you may get better value if you switch, or tell current providers you intend to switch. Seek discounts for taking out multiple policies with one insurer.

  • Use the car less: take public transport; carpool with colleagues; or try walking or riding. You’ll be amazed at how quickly it all adds up to savings.

  • Make sure you’re paying off debts or credit cards completely each month or as much as possible, to avoid the added expense of paying interest.

Reduce common overspending

If you spend excessively on things like buying clothes, going out or expensive hobbies, it may be unrealistic to cut the expense entirely. Set a weekly or monthly limit and reduce that limit over time.

A survey of more than 1000 Australians by the Commonwealth Bank showed that 73 per cent have a problem with overspending. In particular, people tend to go overboard when Christmas rolls around.

To reduce gift expenses, be like Santa: make a list (and a budget). Buy only planned items within your allocated budget – then stop! Ask your family for support; it’s easier to put a cap on gift values if everyone else does too.

Another common way Aussies overspend is on holidays. CommBank research has shown that a third of holidaymakers spent more on their trip than planned. Do your research and set a daily budget.

Costs that could be eliminated

“A penny saved is a penny earned” - Benjamin Franklin

Try and start looking for opportunities to eliminate costs. Cancel unused services. Update your internet or mobile plans if you’re always paying for excess data.

Ask yourself: are you really using that gym membership? Are you getting value from your subscriptions? Remember, every wasted dollar is money you could be spending on your own home.

We hope that these tips have simplified the concept of saving and will help you become more conscious about your spending habits. Keep in mind that if you ever require any assistance with your budget and would like to have a no-cost, no-obligation discussion with one of our qualified and friendly financial advisers here at Create and Protect, email us at or call 1300 707 955.

We are your local team of financial planners, based in Clayton, south-east of Melbourne, Victoria. We are only one phone call away and are always prepared to help put you on the right track in securing your financial future.