Lesson 1.3

It’s always a good idea to be mindful of how much you consume of something. Economics teaches that you should only keep consuming something up to the point where the benefits exceed the cost. It also teaches that we tend to get diminishing benefits from consuming more of the same thing. Of course, different people value different things and get varying levels of benefit from the same purchase. That’s ok. 

What matters is that you pause to consider the value you are getting from your purchases. So, why not try a ‘no-spend’ challenge where you pick one area of your spending and challenge yourself to go without for a period of time? A no-spend challenge can be one way to figure out if you really miss something or didn’t get much value out of it anyway.

If you can't - or don’t want to - cut something out of your budget entirely, try moderating your purchases instead. Set a budget for how much you will spend each week or month, for certain discretionary categories, such as eating out or clothing. 

You can also try spacing out your regular appointments, or frequenting businesses that offer discounts for repeat customers.

Why purchase something you only need to use once, or infrequently, when you can rent it for a fraction of the price? From power tools to special occasion outfits to cars, consider searching for rental options before you buy.  

Don’t forget, you can also ask friends or family if you can borrow an item. Now, more than ever, it’s ok to ask for help when budgets are tight.

If you’re connected to work or home networks most of the time, there’s a good chance you’re paying for more data than you need. Use your provider’s app to keep tabs on usage. You may find that you only need 15 gigabytes per month, rather than unlimited data. If you’re paying for loads of data you’re not using, that’s hard-earned dollars streaming out the window. Try downsizing your data plan – the savings might surprise you.  

If you haven’t used your local library for a while, it’s time to get reacquainted. Libraries have evolved and many now offer a variety of digital content free to enjoy anywhere. There’s not just the latest eBooks, there’s also music and video content on user-friendly mobile apps. Some libraries even offer co-working spaces and free wi-fi. It’s time to dust off that library card and unlock great savings.  

Find innovative ways to repurpose what you already have, whether that’s using old sheets for cleaning cloths, mending clothes that require stitching or simply conserving how much you use of something. Challenge your consumption decisions to see if you can use less.

It’s always a good idea to compare prices across retailers and other service providers before committing to buy. Insurance premiums, in particular, have been rising rapidly so if you haven’t reviewed your policies in a while, now’s the perfect time. Start by choosing one policy to review, such as your car, home or health insurance. Obtain competing quotes using online comparison sites or calling competitors directly. Just make sure you’re comparing policies with similar features. And if you find a cheaper quote, see if your current insurer will match it. If not, consider making the switch. 

When it comes to lower prices, you can’t beat free. Online marketplaces and 'pay it forward or 'buy, sell, swap' groups are a doorway to the wonderful world of the second-hand economy. Many people give things away for free on these sites, but you can also find items at a significantly reduced price – it’s not just cars that depreciate rapidly in value once out of the store. Next time you’re looking to buy something, whether it’s furniture, décor or clothing, make it a habit to browse second-hand first. And don’t forget your local op-shop! Always be cautious of online scammers and verify your source before sharing any personal information or payments.

As consumers hunt for better deals, retailers have shifted to discounting more heavily during their sales periods. So, it’s not just the New Year or Boxing Day sales you need to remember anymore. Time your purchases with other sale periods, including Click Frenzy (July), End of Financial Year Sales (July), Black Friday and Cyber Monday (late November). Timing your purchases of larger items like electrical goods and furniture during these sales can save you hundreds of dollars.

Would you like to get paid for shopping? There is a new trend of ‘cash back’ websites and apps which pay you cash back into a dedicated account (usually after a waiting period) if you follow the links and instructions provided. 

CommBank customers may be eligible for cashbacks from the CommBank Yello program. Offers are available on groceries, clothes, transport, utility providers and many other major retailers. Head to the CommBank Yello section of the CommBank app to see what you may be eligible for.

Many retailers offer rewards programs for regular shoppers. You can turbocharge your savings by transacting via a credit card with a rewards scheme. Be sure to do your own numbers to make sure the savings stack up, but banking your credit card reward points can create a handy little savings pot to draw on when needed. 

Investigate and compare rewards card offers using one of the many online comparison websites to investigate offers.

Small changes in the way you shop for groceries will save you cold, hard cash every time. Skip prechopped produce and pay attention to the unit price. It reveals the real cost per quantity or size, making comparisons easier. Give cheaper home brands a try and remember the most affordable per unit pricing is often placed on low or high shelves, with the most expensive usually at eye level.  

Pump prices can vary by as much as 40 cents per litre in the same suburb. So, remember to ‘look up’ before you ‘top up’. In NSW, the government’s Fuel Check app is great. In Victoria and Queensland, local automobile clubs offer state-specific apps. West Australians can access the Fuel Watch app and Tasmanians can use Fuel Check TAS. Nationally, apps like Petrol Spy and Motormouth are also worth a try.