Low household savings are a real source of financial stress, yet it’s possible to grow a pool of cash without having to sell a body part or scrimp on lifestyle. Let’s take a look at five ways to save over $5,000 in 2019.
1. Pay less than 4 per cent on your home loan
The average home loan is worth $386,000 – a big chunk of money, so there’s plenty of scope to save. Not so long ago, if your mortgage interest rate doesn’t start with a four you were paying too much. But shop around and you’ll find smaller lenders are charging even less. The thing is, home owners are still paying an average rate of 4.65 per cent. Yes, refinancing can come with costs but here’s a chance to cut close to 1 per cent off your loan rate, potentially saving around $3,860 in interest this year alone.
2. Clear the credit card
Australians owe an average of $3,220 per credit card. Scary thing is, plenty of us have more than one card, and even among what the Reserve Bank describes as ‘low rate’ cards, the rate is typically 13%. Aim to pay off your card in 2019 .
3. Use unit pricing
Consumer group Choice estimates we could save $1,600 on groceries in a 12-month period just by looking at unit prices. You’ll find these displayed on supermarket shelves just below the ticketed price.
4. Drop your biggest money waster
Think of just one habit you could drop to boost your savings.
5. Cut investment costs
I’m a big fan of investing. However, I’m not so keen on paying more than necessary to keep my money working hard. Canstar research found the annual fee on a ‘balanced’ investment fund can be up to 2.42 per cent. It’s possible to pay far less.