How to save $2,000 on your finances in 2022

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Set yourself some lofty savings goals for 2022? The start of the year is the perfect time for goal setting, but it’s also a great time to reassess your finances with fresh eyes because one great way to save more is by trimming down your existing costs.

So to give you some inspiration we’ve crunched the numbers on some of the most common financial expenses to give you an idea of just how much you could save during 2022. And who knows, maybe you’ll hit the $2,000 mark or more! Read on to find out.

1. Refinance your mortgage

australian-suburban-house

Potential savings: $1,078

When it comes to saving money there’s no better place to start than your mortgage (if you have one) - after all, it’s probably your biggest expense. Of course, you’ll need to establish whether you’re in a position to refinance and, if you are, whether it’s worth contacting your current lender to see if they can offer you a better deal.

The number crunch 

Let’s say you’re currently paying 3.00% interest on a $400,000 loan which you’re paying off over 20 years. That means your regular repayments are currently $2,218/month. However, if you were able to switch to a loan with a variable rate of 2.50% (and there are plenty of even lower rates around at present), your monthly repayments would drop to $2,120.

That’s a difference of $98/month or $1,078 saved over the remaining 11 months of the year. Bonus points if you can refinance to a lower rate and score some cashback while you’re at it.

What else do you need to know?

Bear in mind that there may be fees associated with switching loans, so make sure you weigh those up against any potential savings. And every borrower’s situation is also going to be different, so plug your own numbers into our switch and save calculator calculator if you’re interested in seeing whether refinancing could be worthwhile for you.

2. Ditch your annual credit card fee

woman-holding-credit-card-and-phone

Potential savings: $134

Realised that your credit card isn’t providing the same kind of value it once was? It happens. Of course, there are plenty of credit cards out there that may provide better value for money than your existing card, but if you’re ready to give annual fees the flick altogether, a card with no annual fee will be the way to go.

The number crunch

You don’t have to be a maths prodigy to work out how much you could save by ditching your card fee, but for some context, the average annual credit card fee in the Mozo database is currently $134 per year - so it’s certainly a cost worth re-evaluating from time to time.

The good news is that there are a heap of no annual fee credit cards to choose from (we’re tracking 34 in our database), including cards with low purchase rates, cards with balance transfer offers, cards with loyalty programs and cards that let you earn frequent flyer points.

What else do you need to know?

Just remember that if you have an outstanding balance on your existing card, you’ll need to pay that off before closing your account. That is, unless you opt for a balance transfer, but we’ll go into that in more detail below.

3. Review your car insurance

cars-lined-up-in-a-car-park

Potential savings: $303

If renewal time is fast approaching on your car insurance then now’s the time to start comparing quotes from a few different insurance providers to ensure that you’re not paying more than you need to on your policy.

The number crunch

So just how much could you save? Well, the thing about car insurance is that providers use a whole range of variables to work out your premium including your age, gender and location plus the age, make and colour of your vehicle. What we do know though is that there can be significant price differences between relatively similar policies.

In fact, as part of our 2021 Mozo Experts Choice Car Insurance Awards (which assessed quote data from 35 car insurance providers across 9,503 customer scenarios), our experts found that there was an average premium difference of $303 a year between quotes for comparable cover.

What else do you need to know?

While cost will be an important consideration for most drivers (especially those looking to save) it may not be the only thing you’ll want to consider in a policy. So if you are thinking about switching insurance providers, make sure that your new policy includes all of the features you need.

4. Make the most of a balance transfer

man-organising-a-balance-transfer-on-his-phone

Potential savings: $323

Did you know that Australians have a collective credit debt of around $17 billion? If you’re among that group and you’re looking for a way to pay off that debt for good and save some money on interest and fees, then a balance transfer could be an option worth exploring.

The number crunch

How does it work you ask? Here’s a scenario. Let’s say that you’ve got a $3,300 balance on your current card which has a 17.50% p.a. purchase rate and no annual fee.

If you transferred that debt to a balance transfer credit card with a 0% p.a. balance transfer rate for 15 months and no annual fee, you could pay off that debt by the end of the year by making 11 monthly payments of $300. And you would also save $323 in the process.

What else do you need to know?

There may be a fee to pay when you make a transfer, and most balance transfer cards don’t come with interest-free periods, so you may be better off just focusing on paying down the debt. You’ll also want to try and pay off your debt before the balance transfer period ends, because the balance transfer rate generally reverts to a much higher rate.

5. Change your broadband plan

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Potential savings: $165

I know what you’re thinking: is it really possible to save much money on a broadband or NBN plan? Well, while your monthly internet bills may not be as large a cost as your mortgage or your insurance premiums, they can still add up over the course of a year. And so can the potential savings on offer if you’re in a position to switch to a new plan.

The number crunch

Here’s one simple scenario using Mozo’s broadband comparison tool. Let’s say you’re currently paying $75/month for a plan which includes unlimited data and a typical evening speed of 50 Mbps.

If you were able to switch to a similar plan offering comparable speeds and unlimited data for $60/month (of which there are quite a few options available), you’d be looking at a reduction of $15/month or total savings of $165 over the remaining 11 months of 2022.

What else do you need to know?

Like home loans and car insurance, there are a bunch of different factors which determine how much you’ll pay for an internet plan including how much data you want and the kind of speeds you require. Internet service providers will also vary depending on where you live.

RELATED: High interest savings account round-up: January 2022

That’s it from us for saving inspiration, but if you’re interested in even more ways to improve your finances this year then why not check out these 5 tips to better money management in 2022 and these 22 ways to save in 2022.

Or if you’re looking for a safe place to stash your savings and help them grow throughout the year then you may want to check out the interest rates and features on a range of high interest savings accounts using our handy comparison table.

Compare savings accounts

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 274 savings accounts.
Last updated 21 July 2024 Important disclosures
  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first 4 months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2024 Mozo Experts Choice Award winner.

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    Details
  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

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    Details
  • Savings+Bonus

    5.00% p.a. (for $0 to $250,000)

    2.00% p.a.(for $0 to $250,000)

    Yes up to $250,000

    Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.

    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

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    Details
  • Bonus Saver Account

    5.00% p.a. (for $0 to $250,000)

    0.05% p.a.(for $0 and over)

    Yes up to $250,000

    Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.

    Start saving and earn interest with just a $20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.

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    Details
  • Mozo Expert Choice Badge
    Savings Maximiser

    5.50% p.a. (for $0 to $100,000)

    0.55% p.a.(for $0 and over)

    Yes up to $250,000

    For customers who have an Orange Everyday account, deposit $1000 into a personal ING account, make 5 eligible transactions and grow their nominated Savings Maximiser account each month.

    Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

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  • Life - 18-29 years old

    5.20% p.a. (for $0 to $30,000)

    2.00% p.a.(for $0 and over)

    Yes up to $250,000

    Make 5 eligible card purchases per month with a Westpac Choice account and min 1 deposit and higher balance than at the beginning of the month in Life savings account.

    Are you 18 - 29 years of age? Earn up to a generous variable interest rate on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to $30,000.

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    Details

^See information about the Mozo Experts Choice Savings Account Awards

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