7 smart money-saving tips for financial wellness

Updated August 2024 | 5 min read
Words by Natasha Dragun

Across Australia, many families are focused on saving money. Here, we look at how to save money and boost financial wellness – now and into the future. 

We go for a jog, eat well and rest to keep healthy, but we often forget to think about financial wellness and how to cultivate a healthy relationship with money. These days, money matters are keeping us awake at night, with around a third of Aussies feeling financially stressed.

Just like any significant stress, financial stress can affect our relationships and mental health. As the bills come in and the money goes out, it comes as no surprise to most of us that, along with physical, emotional and intellectual health, financial health impacts our overall wellbeing.

Recently we’ve seen interest rates and the cost of living skyrocket, putting more pressure on our bank balances. That’s why it’s time to take financial stock, reassess the family budget and start on the road to financial health and wellness.

Here are seven ways that could help you and your family save money and experience less stress and a more positive frame of mind.

Know your numbers

Taking stock of your current financial situation and setting priorities is a good way to meet your savings goals. A plan can also ease the feelings of financial stress, and make you feel more in control.

• Create a realistic budget that works for you. Make sure you look at:
  • what money is coming in
  • what money is needed for essential things, like bills and rent
  • what’s left over that you can put towards saving or paying off debts.
• Use online budgeting tools like the Australian Government’s Moneysmart budget planner to help set a realistic plan.
• If you have a partner in life, talk to them about your finances and understand each other’s attitudes and habits towards money. This will help avoid conflict in your relationship. 
• Set financial goals, both short term and long term, and seek financial advice if you need it.
  

Reassess your utility bills

A good place to start is to evaluate how much your household is spending on utilities – whether it’s electricity and gas, internet or phone – and what you could be saving. Often, rate increases over the course of the year can slip by unnoticed and can have a major impact on household spending.

Thankfully, there are ways to reduce your utility expenses. Do your research – there are online tools that can help you compare costs. It’s also worth talking to your current provider as they might be able to price match or offer discounts, putting cash into your pocket without the trouble of switching.

You should also check if you’re eligible for government rebates. Depending on your circumstances, these are available to assist families, pensioners, concession-card holders and those experiencing financial hardship, among other categories.

For example, the Family Energy Rebate helps eligible households in NSW with dependent children cover the cost of energy bills, if they’ve been receiving the Family Tax Benefit. And the NSW Gas Rebate helps eligible households cover the costs of natural gas. In Victoria, the Victorian Energy Upgrades program helps Victorians cut power bills and reduce greenhouse gas emissions. Households can receive rebates or discounts on energy-saving products. In Queensland, the Queensland Electricity Rebate is automatically applied to bills every quarter. To check your eligibility, visit their website.

Consider transport costs

The cost of fuel is a major expense for Aussie households. If you rely on a car day-to-day, consider ways to reduce your fuel consumption, like sharing a lift with a colleague, using fuel vouchers, applying for toll relief or monitoring petrol cycles to find the cheapest days to fill up. If you use your vehicle for work, you may also be able to claim certain tax deductions.

The alternative, of course, is public transport. According to Australian Automobile Association (AAA) data for the first quarter of 2024, public transport costs are on average $50 per week for Sydney households and $53 for Melbourne. But that’s still far less than fuel. Plus, many Aussies are eligible to receive government discounts – from students (including tertiary students) to pensioners to those living in regional Australia – as well as discounts on annual passes.

Review your private health insurance

Any time is the ideal time to make sure your health cover is right for you and suits your needs, which may change at different stages of life. Consider these handy tips:

1. Regularly review your cover and inclusions as your health needs and life situation changes.
2. Use our extensive network of hospital and extras providers around Australia to make sure you have a no or known gap experience for services included in your cover.
3. Make use of loyalty programs like HCF Thank You for a range of offers and discounts that can help you save on everyday items like groceries, fuel and other essentials.
4. Find out which health and wellbeing programs are available for free on top of your cover.
5. Consider the value you receive from your cover. At HCF, for every dollar our members paid in premiums, we’ve given back more in benefits than the industry average over the past 10 years^*.
6. Explore a range of financial hardship options that allow you to maintain your health cover during difficult times.
   

Check your deductions

Depending on your situation, you may be eligible for more tax deductions than you realise, especially if you're work from home. If you fall into this category, you may be eligible to claim some of your expenses – like electricity, internet, office equipment, home insurance and phone bills.

There are eligibility criteria and things you can’t claim – like that morning coffee or the laptop your employer purchased for you. Do your research and talk to a tax accountant to make sure you’re getting the savings you’re entitled to.

Manage debt

The Australian Bureau of Statistics reports that 75% of Aussie households have debt, with an average debt level of $203,800.

Consider strategies to reduce the amount of money you’re spending on your debts. Debt consolidation is the rolling of all debts into one single new loan, which can lower interest rates and make payments easier to manage. There can be drawbacks to this strategy, so it’s worth talking to a financial adviser to see how it can best work for you.

It's also a good idea to talk to your bank to see if they offer financial support if you’re experiencing financial hardship, as this could see you save in repayments over the long term.

Consider voluntary superannuation contributions

Voluntary super contributions can be a tax-effective way of boosting your retirement savings and investing extra cash.

These additional contributions can take many forms, from salary sacrificing and spousal contributions to personal contributions. You may even be eligible for a government co-contribution.

It’s worth doing your homework or talking to a financial planner to make sure you’re maximising your savings and know the limits (contribution caps) when it comes to paying extra into your super fund each year.

With a small investment of time – plus a little assistance from tools and advisors – you could enter the new financial year stressing less about your finances, with more cash in your pocket, and a stronger position for the future.

Call us for a chat

If you’d like to know how your health cover can work for you, or to update or review your current policy, call us on 13 13 34 to discuss your options.