Career & Money

How To Save Money In 6 Simple Steps

By Emma Pegrum
6th Nov 2022

We all know that feeling—that pit in the stomach—when you’re thinking about your financial situation, whether you’re stuck in dire straits or trying to save but feel like you’re getting nowhere.

Well folks, it doesn’t have to be this painful. We’ve scoured the modern library (internet) for all the pro tips on how to save money, and it turns out they’re actually pretty achievable‚in some cases, they’re even life-enriching (pun intended).

So before you give in to that pay-cheque-to-pay-cheque life, try these tips to start saving money right now.

Cut Out The Non-Essentials

The essentials are things like rent, food, electricity, and petrol. Non-essentials are gym memberships, barista coffee, and buying lunch at the office. When you’re grocery shopping stick to the essentials. Ask yourself if ice cream is a need or want? Instead of paying for Netflix watch free-to-air TV or read a book. These small changes can result in achieving your saving goals sooner.

Use Salary Sacrificing To Save

Salary sacrificing is where you agree for your employer to pay for benefits such as a car, extra super contributions, a mobile phone, and childcare from your gross salary. This means you receive less in your hand, but you also pay less tax. Be sure to talk to a certified tax accountant before agreeing to any salary packaging to minimise your fringe benefit taxes and avoid exceeding super caps.

Cancel Your Subscription Services

You’ll be surprised how much money you can save if you cancel all your miscellaneous apps, gym memberships that you barely use, and streaming services. With all the on-demand free-to-air apps, there’s plenty you can watch without paying for anything but the internet. 

Set Up A Side Hustle

There’s lots of money to be made out there, you just need to find a niche in the marketplace, and everyone has a talent they can turn into a money-spinner. Before it starts raining dollars, you’ll need an ABN and maybe some advice from a financial advisor on the best way to structure your business. Here's a quick guide on how to set up your own side hustle and how to prevent side hustle burnout.

Learn How To Maximise Your Tax Return

Certified tax accountants spend a lot of time paying money to get the qualifications so they can help people get the most effective tax returns come end of the financial year. So, why boggle your brain trying to look for tax-saving ways to maximise your return? Your accountant fees are tax-deductible, and you’ll get the most relevant, up-to-date tax information. Not sure where to start? Here's exactly how to maximise your tax return.

Offset Your Mortgage

Having an offset mortgage account may help you pay off your home loan faster and save you thousands on interest. All you have to do is deposit everything you earn into your offset account (which works like a daily account, meaning you can use it to pay for essentials). 

Now, if you're kicking off 2023 with a career sea change, here's how to write an epic resume.

Image credit: Urban List

Gerry Incollingo is the Managing Director of LCI Partners in 1998, an established accounting, finance and legal firm based in Parramatta. Since that time, the firm has expanded with six divisions and is now based in Sydney, Parramatta, and southern Sydney.

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