6 expenses you can ditch in 2019 that will boost your savings by thousands

Whether you’re coming out of holiday mode or looking for new year motivation, it’s the perfect time of the year to ditch old habits and set you and your bank account up for a prosperous year ahead.

Here’s six tips that will help you to ratchet up your savings into the thousands and set you on the path to not only a wealthier you in 2019, but a healthier you as well.   

The daily caffeine fix:

With quality barista coffee right at our doorsteps, the daily flat white or espresso coffee is one habit that’s hard to ditch. But according to the 2018 Square Australian Coffee Report, we are now spending an average $4.50 per cup. Why not challenge yourself in 2019 and try going without coffee for a month or switch up your routine and only buy a coffee every second day? This simple act could save you around $66 in a month if you go for coffee every second day and about $800 over 2019, which you could put into your savings account or put towards your own home espresso machine.

Potential savings: $16.50 (per week), $66 (per month), $792 (over 2019)

Uber eats your savings:

Wow! ABS figures reveal that Australian households spend on average $95.05 each week on restaurant meals and takeaway. Rather than buying your lunch each day, in 2019, bring a packed lunch to work two days a week. This could save you around $30 a week or $130 a month that you can put towards gym classes or recipe books!   

Potential savings: $30.00 (per week), $130 (per month), $1,560 (over 2019)

Shine a light on your electricity bill:

The start of 2019 is a great time to compare your energy plan to see how much you could save by switching. Don’t be fooled into thinking that all energy plans are the same. A quick number crunch with Mozo Energy Cost Cruncher shows that for a household of four people in Sydney postcode 2000 with a medium daily energy usage (around 17.3 kWh), you could be paying a much as $775 or as low as $459 per quarter depending on your energy plan and provider. That a difference of $1,264 in a year! So jump in and see if you’re in a good deal and if not, maybe it’s time you switched.

Potential savings: $105 (per month), $316 (per quarter), $1,264 (over 2019)

Lower your home loan repayments:

If you haven’t switched your home loan recently, there’s a chance you could be paying too much. By using Mozo’s home loan search calculator, you can browse through the hundreds of home loans in our database to compare loans and repayments.

Let’s look at the following scenario. Using the average new home loan amount of  $400,000 over 25 years. If your current loan has an ongoing interest rate of 4.35% with monthly repayments of $2,189 and you refinance to a new loan with an interest rate of 3.59% and $2,022 in monthly repayments. According to the Mozo Home Loan Comparison Calculator, over a 25 year period you would save a total of $50,267 by choosing the cheaper loan. That’s a yearly saving of $2,010 and a monthly saving of $167. Now think of what else you could be spending this money on!

Potential savings: $167 (per month), $2,010 (over 2019), $50,267 (over life of loan)

Cut down on the booze:

Aussies love their booze and according to a survey conducted by AIHW, households spend approximately $1656 a year on alcohol. Cutting back will not only save you some dollars in 2019, health experts also say that reducing the amount you drink can improve your sleep, lower your blood pressure and improve your mental and physical health. Win Win! The good news is that you don’t have to do this alone. Pair up with a friend or sign up to one of the many charity events like febfast, Dry July or Ocsober.

Potential savings: $32 (per week), $138 (per month), $1656 (over 2019)

Curb your sweet tooth:

We all enjoy a sugar hit every now and then but the scary thing is that most of us don’t realise how much sugar we’re actually consuming each day. Why not use money-saving as the reason for cutting back on your sugar intake in 2019? By cutting out a block of chocolate ($4), one box of sugary cereal ($5) and a small bottle of soft drink ($3) each week, you can save up to $52 a month.

Potential savings: $12 (per week), $52 (per month), $624 (over 2019)

Where to park your savings...

To make sure that you stash away the savings you make from your new habits, be sure that you set up a high interest savings account, which pays you bonus interest for making deposits within the month and no withdrawals. With online banking and the new NPP, your money can be transferred instantly between banks so be sure to shop around and find an account offering the highest interest rate.