Savings tips: What we learned from 2020’s impulse purchases
Did you purchase a lego set last year? A puzzle? Or a shiny new book fresh off the printing press?
In its recently released report - Lockdown: One Year On, eBay revealed that it received an extra one million visitors per month in 2020. Aussies searched the site for everything from gardening equipment to power tools and puzzles. In fact, shoppers dropped a huge $59 million on books alone.
Our question is, what lessons can we learn from our (sometimes) impulse purchases last year? How could we save money next time and how can we be a little bit savvier?
Borrow first mentality
Let's look at that statistic from eBay again. During the pandemic Australians collectively spent $59 million on books. That's a lot of money. Now we know new books can be tempting, but they're also expensive. You could easily drop between $20 and $50 on a paperback or hardcover. This is where the 'borrow first' mentality comes in.
In Australia, public libraries are free to join and you won't have to pay a cent to borrow books. Just think you could take home a stack of books for free, that if you'd purchased them new, could easily have set you back around $200. It sounds simple enough, but rediscovering the library really does open up a world of possibilities. Check out the Australian Libraries Gateway, to find a public library near you.
Take it for a test drive
Following on from that, before you make a big purchase really try to suss out whether it will actually be worth your while. For instance, if a hobby you fancy getting into requires a lot of expensive tools, see whether you can borrow those tools from somewhere first. That way you can determine whether or not the hobby is actually for you without wasting money on equipment you'll never use again.
'Tool libraries' are popping up across Australia. With these you can usually purchase an annual membership for less than $100. That means for one year you could have access to power tools, gardening equipment, camping gear, sewing machines and much more. If there isn't a tool library near you, do a quick internet search for what you're looking for. You may find that some companies who sell certain specialist equipment also have a hiring service. For instance, Bunnings has a hire shop for large or expensive equipment.
Failing all this, see if you can borrow what you need from a friend or neighbour. It could be the start of a beautiful, sharing friendship!
Opt for pre-loved
If you can't buy something, see if you can save money by buying it secondhand. These days there are so many ways to buy pre-loved. In person you can go to secondhand markets, charity shops or even attend a suitcase rummage. If you're looking for secondhand tech, a lot of camera shops sell refurbished equipment, including Ted's Cameras. Online there are possibly even more options. These include Facebook Marketplace, Gumtree, eBay, Carousell and Depop.
By opting to buy secondhand instead of new you'll not only be saving yourself money, but also giving an item another lease of life. It's a win-win!
Sleep on it
Last of all, if you're undecided about whether or not to buy something, sleep on it. Companies will often use scarcity tactics to persuade you to buy something right away. This could be stuff like saying 'only X amount of these left in stock,' or notifying you that someone else just bought the same item. Contrary to this, often you'll find that there really are enough resources to go around.
If you don't buy something straight away, you might even realise that you're not that fussed about it after all. Or if you wait, then the gratification you get when you finally purchase it will be even more satisfying.
So to recap, we think you could save some serious bucks by:
- adopting a 'borrow first mentality'
- doing a test drive before making a commitment
- opting for secondhand
- mulling things over before popping in your payment details.
Once you've done all that, you might find that you have a fair bit of spare change knocking around in your account. Why not put it in a high interest savings account. Head to Mozo's compare savings accounts page, or take a look at the options below. You could even save for a holiday in 2022!
Compare savings accounts - last updated 29 March 2024
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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 four months.
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
- Maximum rate
- 5.35% p.a. (for $0 to $250,000)
- standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first four months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Macquarie Savings Account
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Mozo experts choice awards won:
- Kick Start Savings - 2024
High Interest Savings Account
5.75% p.a. (for $0 to $250,001)
4.40% p.a.(for $0 to $250,001)
Yes up to $250,000
Bonus rate for the first 4 months from account opening
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
CompareCompareHigh Interest Savings Account
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
- Maximum rate
- 5.75% p.a. (for $0 to $250,001)
- standard interest rate
- 4.40% p.a.(for $0 to $250,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Rabobank High Interest Savings Account
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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.
CompareCompareReward Saver Account
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.
- Maximum rate
- 5.25% p.a. (for $0 to $1,000,000)
- standard interest rate
- 0% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- 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.
- Access
- ATM, EFTPOS, Visa Debit, Cheque book, BPay, Branch access, Phone banking, Internet banking, Bank@Post
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the IMB Bank Reward Saver Account
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Reward Saver
5.25% p.a. (for $0 to $100,000)
0.30% p.a.(for $0 and over)
Yes up to $250,000
Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.
CompareCompareReward Saver
Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.
- Maximum rate
- 5.25% p.a. (for $0 to $100,000)
- standard interest rate
- 0.30% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Grow your balance each month and must have linked Bendigo Everyday or Student Account to be eligible.
- Access
- BPay, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Bendigo Bank Reward Saver
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Mozo experts choice awards won:
- High Interest Savings - 2024
AMP Saver Account
5.40% p.a. (for $0 to $250,000)
1.20% p.a.(for $0 to $5,000,000)
Yes up to $250,000
Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.
No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.
CompareCompareAMP Saver Account
No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.
- Maximum rate
- 5.40% p.a. (for $0 to $250,000)
- standard interest rate
- 1.20% p.a.(for $0 to $5,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Ongoing total variable bonus rate of up to 5.40% per annum applies if customers deposit $1,000 in the previous month. Available only on balances up to $250,000.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Ongoing total variable bonus rate up to 5.40% p.a. is earned on the balance the month after you deposit $1,000 and is paid the following month, on balances up to $250k. Max balance per customer name is $5 million.
Read our Mozo Review to learn more about the AMP Bank AMP Saver Account
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^See information about the Mozo Experts Choice Savings Account Awards
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