Ways to save money

Ah yes, the age-old question: how can I save money? Well, there are many potential ways to save money like cutting back on takeaway coffee or lunch, going to a cheaper grocery store, or planting your own herbs. There are plenty of strategies people have invented to save money, especially as the cost of living continues rising.

By coming to Mozo, you’ve entered the money saving zone and we are here to give new ideas on how to keep some extra cash in your pockets. Whether it's a saving challenge, making work commute cheaper, or helping you discover great deals.

Below we’ve collected some of our favourite money saving strategies to help you get started.

Be a budgeter

Having a budget is quite handy. It helps you see exactly how much you’re spending and where your money is going. Once you have a clear idea of your spending you could review unnecessary items–like that gym membership that you never use–and cut them out and put that extra cash into a savings account.

If you don’t already have one, check out our budget calculator to get you started. Remember to make it realistic and consider tailoring your budget to include some savings goals.

Related: The seven budget and savings apps every Aussie needs

Give up a vice

Sometimes giving up a habit is the remedy that a bank account needs. For example, for a time I always got takeaway for lunch. And even though I always aimed for my lunch to be less than $15, I was still spending about $75 a week which was close to $300 a month! Once I cut my habit to once a week I suddenly found myself with so much extra money each month.

While I didn’t necessarily go cold turkey with my lunch buying ways, drastically reducing it really helped me save money. Now I put that extra money in my savings account and sinking funds.

Choose the right account

Becoming a smart saver could help you save more money in the long run. So you want to make sure your money is going into the right type of account. If you let your savings sit in an everyday bank account you’ll probably be earning close to no interest - and that’s not ideal. 

Instead find a savings account with high interest rates to get you earning some money for saving.

Otherwise, there are heaps of other types of savings accounts, or, if you’re willing to lock your funds away for a while and not touch them at all, you might like to check out a term deposit.

Savings Account Comparison Table - last updated 6 August 2022

Search promoted savings accounts below or do a full Mozo database search . Advertiser disclosure
  • Save Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.35% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Deposit at least $200 to either Spend or Save account from an external source each month.

    Earn up to 1.85% p.a in interest. No monthly fee to pay. Split your money in up to 10 Save accounts. Track your progress on each of your save accounts. Instant access to cash via PayID and Osko. Deposits guaranteed up to $250k per customer.

    Details
  • Mozo Expert Choice Badge
    Boost Saver with Go Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.30% p.a. (for $0 to $250,000)
    0.05% p.a.(for $0 and over)
    Yes up to $250,000

    Bonus rate of 2.30% is made up of the Base rate of 0.05% and Bonus rate of 2.25%. Deposit $2,000 each month and make 5 eligible payments from your Go Account. If you are between 18 and 25 deposit $1,000.

    Enjoy a high interest savings account bundled with an everyday spending account. No monthly fees. And new customers can get a welcome bonus of 5,000 bonus Virgin Money Points (ends 31/08/22. Offer criteria & T&Cs apply).

    Details
  • Mozo Expert Choice Badge
    Life - 18-29 years old
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.75% p.a. (for $0 to $30,000)
    0.65% p.a.(for $0 and over)
    Yes up to $250,000

    Make 5 card purchases/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 2.75% p.a. variable interest on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to $30k.

    Details
  • Mozo Expert Choice Badge
    Bonus Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.10% 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.

    Winner of a Mozo Experts Choice Award 2022 in the Regular Saver category. No monthly account fees. Available only on balances up to $250,000.

    Details
  • Grow Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.80% p.a. (for $0 and over)
    0.05% p.a.(for $0 and over)
    Yes up to $250,000

    Make at least 1 deposit per month and no more than 1 withdrawal, including internal transfers or external payments. Must enable the Lock Saver feature. 32 days notice for withdrawal and T&C's apply.

    Pay no monthly fees. Set-up to 9 personalised savings accounts and choose to lock as many accounts as you like to earn the maximum variable interest rate. With just 32 days notice to access your money again, your future self will thank you.

    Details

Save the small stuff

A wallet jam-packed with coins can be annoying, and if you’re anything like us, these little pieces of shrapnel will also wind up slipped into your handbag, lost behind the couch cushions and abandoned in nooks and crannies everywhere around the house.

But the reality is, you could have a couple of hundred dollars floating around in loose change. So set yourself up a piggy bank and drop your change into it every afternoon when you come home. You’d be surprised how quickly it will add up!

Pay with cash

There are a few reasons why this works: for starters, cash is a lot more personal than a piece of plastic. If you’ve held your savings in your hand, you’ll miss them more. Some people are also better at saving when they can see their weekly budget dwindling before their eyes.

If you’re really serious about it, try setting yourself a challenge, for example: every time you pay for something, put the loose change you get back into your piggy bank. You’ll save a few dollars each time and as your weekly cash budget drains out quicker than ever, it will probably prompt you to tighten up your spending as well.

Cut yourself a check

You’ve probably heard the term ‘pay yourself first’ thrown around a bit. But what does it mean? Basically, you should consider putting savings away a planned cost, like rent or loan repayments. Decide on a wage for yourself - maybe as little as $10 a week, maybe as much as $100, depending on what your weekly expenses will allow - and then as soon as you get paid, stash that amount away in your high interest savings account. Tell yourself it's a necessary cost, make it a habit, and you’ll barely even notice the money’s gone. Then, after a few months, you’ll have a nice fat rainy day fund built up, almost without lifting a finger.

Stay on top of your savings strategy

It’s not time to relax just yet! Picking your favourite savings strategy is only half the work - the other half is making sure it's still working weeks, months and even years down the track. 

If you decide to give yourself a weekly cash budget and end up spending more than you did before, that’s probably not the savings strategy for you. 

The main thing you’ll be looking at is obviously your savings account balance. Is it growing? Is it growing fast enough? But you also need to keep one eye on the market and ask yourself if your savings account is still the most competitive around. A small change in interest rates may not seem like much but listen to this: 

If you had $5,000 in a savings account with an interest rate of 1.65%, you’ll earn just $341 in interest over 4 years. If you parked it in a better savings account with an interest rate of 2.41%, you’d earn $164 more over the four years. Just for keeping an eye on the best interest rate deals. Not bad, huh?

Save more money now

Found your answer? Whatever way you plan on saving money, there’s no time like the present to start. So head on over to our savings account comparison tables to find some of the best deals available on the market today.
Or, if you’re looking for a few more tips to help you save, check out our seven steps to savings heaven.

^See information about the Mozo Experts Choice Savings Account Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.