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← News · 18 October 2025

Want to Save Money? Start Now!

Save Money

Before diving into techniques to save money, it’s worth pausing on why saving—even modest amounts—makes a difference.

  1. Psychological and mental-health benefits People who practice stable financial behaviours (such as regularly saving and paying off credit card debt) report better mental health, vitality, social functioning and general wellbeing. In short, saving reduces financial stress, gives you breathing room, and contributes to emotional stability.
  2. Beating “overspend drift” in Australia

    Many Australians have good intentions, but struggle to stick to them. According to a snapshot of Australian saving behaviour, while 68% of Australians report having saving goals, more than 37% say they don’t always follow through.

  3. Compound impact over time The earlier you start—even with modest amounts—the more time your savings (or investments) have to grow. This principle underlies many behavioural strategies (e.g. “save more tomorrow”) used to encourage consistent saving.

Thus, saving is not about being perfect or maximising returns overnight—it’s about building consistency, reducing risk, and giving you options.

Principle #1: Start Small and Be Disciplined

One of the most significant barriers to saving is thinking “I need to set aside a lot of money, or else it’s not worth doing.” The opposite is true: starting small helps you build habits, reduce psychological resistance, and gain momentum.

1. Commit to “micro-saving” (small weekly or fortnightly amounts)

This approach is supported by behavioural science: by lowering the “activation energy” (i.e. the psychological cost of setting aside money), you’re more likely to stick with it.

2. Automate your savings

3. Use “Save More Tomorrow” or “future self” pledges

4. Use “fresh start” triggers

5. Mental accounting & goal buckets

Principle #2: Be a Smart, Intentional Buyer

Saving isn’t just about cutting; it’s also about optimising your spending. A large portion of wasted money is due to poor purchasing decisions, impulse buys, or neglecting to shop around.

1. Become a bargain hunter (the “deal detective” mindset)

In Australia, many households save money by switching utilities, insurances, or telecommunications providers. Financial service sites often highlight how much you could save by switching. This is a low-hanging fruit.

2. Use the internet wisely to dig deals

3. Evaluate “total cost” not just sticker price

4. Delay non-urgent purchases (30-day rule)

5. Bulk buy or group buy when it makes sense (and share with trusted people)

Principle #3: Identify and Curb Recurring Discretionary Expenses

Recurring small “luxuries” can quietly erode your budget. The trick is not necessarily to eliminate all pleasure, but to be intentional and cut the “low-value repeat spends.”

Here are common recurring discretionary costs and strategies to manage them:

1. Eating out, takeaway, coffee runs, lunches

These small everyday expenses, repeated, can add up big over a month or a year.

2. Subscriptions, streaming, digital services

3. Impulse “convenience” purchases

4. Recurring entertainment & social spending

5. “Lifestyle creep” and buy-now-pay-later (BNPL) traps

6. Gambling and risky “fun money”

Principle #4: Anchor Savings to Purpose & Milestones

People are far more motivated when they have a why. Without purpose, savings often get redirected to other things.

1. Define clear, concrete goals

Write your goals down, with timelines and target amounts. Make them specific (“$2,000 in 12 months” rather than “save more”).

2. Break large goals into smaller milestones

3. Use “accountability devices”

4. Reassess and rebalance periodically

Step-By-Step Getting Started (To Turn This Into Action)

Here’s a suggested action roadmap you can follow today or this week:

  1. Set one small savings target Choose a modest weekly or fortnightly amount you can commit to saving (e.g. $10/week).
  2. Open a dedicated savings (or high-interest) account Keep it separate from everyday spending accounts (to reduce temptation).
  3. Automate the transfer Schedule an automatic deposit from your transaction account to your savings account just after you receive income.
  4. List and audit recurring discretionary expenses Identify all the small repeat costs (coffee, lunches, subscriptions, streaming) for the last month. Which ones can you reduce or eliminate?
  5. Pick one “switch” or “comparison” to do this week For example: compare electricity providers, shop for cheaper insurance, or check mobile plans.
  6. Delay one impulse or non-essential purchase Use a 30-day waiting rule; see if you still want it later.
  7. Create or review your goals Write down 2–3 financial goals (short to medium term). Break them into milestones and schedule check-ins.
  8. Set a calendar reminder for review Every 3 months, revisit your saving rates, spending, and goals.

Once you begin, you’ll gain momentum—and you'll likely feel more confidence and control.

Why This Works: Behavioral Insights & Australian Context

Here’s how behavioural science supports the strategy above, especially in Australia’s current environment.

In Australia, the cost-of-living squeeze and inflation make discipline more important. Smart switching, bargain-hunting, and reducing small repeated costs (coffee, takeaways, subscriptions) are especially effective under tight margins. The ING/Compare the Market research shows the cumulative gains from smart shopping are substantial. (News.com.au)

Australian households may also benefit from frequent review of utility, insurance, and telecommunications contracts. Because these services often have annual renewals, the moment of renewal is a natural trigger to shop around.

Furthermore, Australians’ use of BNPL is high, and regulatory changes are increasing scrutiny of how these affect credit scores. (Courier Mail) Awareness of how buy-now-pay-later (or smartphone “buy now” ease) can undo disciplined saving is crucial.

Finally, the link between positive financial behavior and mental health is especially meaningful—saving, reducing debt, and establishing regular habits tend to lead to reduced stress and greater overall well-being. (Home)

Realistic Mindset: Patience, Not Perfection

Common Objections & Ways to Overcome Them

Objection Response / Strategy
“I don’t have enough spare money.” Start with very small amounts. Even $5 or $10 per week is better than nothing. As habits solidify, increase gradually.
“I’ll forget or skip the transfer.” Automate it. If automated, your future self won’t need to decide.
“I hate giving up coffee/going out.” Don’t eliminate all pleasure. Instead, allocate a modest “fun budget” and be intentional about when you indulge.
“I’ll just use savings if something comes up.” Keep a buffer (emergency fund) separate. Make that a non-touch category unless truly essential.
“Deals and comparison take too much effort.” Do one comparison per week; set a time limit. Over time you build the skill.
“I’ll start next month / on pay rise.” Use a fresh start date (e.g. next Monday) and commit now—momentum often beats delay.

Summary & Final Call to Action

Saving money is not a destination—it’s a discipline, a mindset, and a set of habits you build over time. Here’s what to take away:

References