You’d be hard pressed to find someone who hasn’t made a new year’s resolution at some point. It’s just what you do, isn’t it? Whilst not all resolutions are kept, the new year is a perfect time to hit reset on not just your goals and routines, but your budget too.
If you’re looking for a practical way to start the year feeling more in control of your money, these tips may help.
1. Make a list of all your expenses
Knowing where all your money goes is one of the best places to start. Write down everything from regular bills (housing, utilities, transport, debt, insurance) to the less obvious expenses (coffee runs, takeaway food, online purchases). Seeing your expenses laid out clearly can be eye-opening and can help you spot patterns or areas where small changes could make a big difference.
2. Review your subscriptions
Subscriptions can be easy to forget about because they’re often small amounts that get taken out of your account automatically. Take some time to look at things like streaming apps, software, memberships and delivery services. Ask yourself the following questions:
- Am I still using this?
- Can I cancel, pause or downgrade?
- Is there a cheaper alternative?
Even cancelling one or two unused subscriptions can free up extra money each month.
3. Review your policies
Insurance policies such as home, car or health, are worth reviewing regularly. Check that you’re not paying for cover you no longer need and compare providers to see if better deals are available. Sometimes even requesting a review or shopping around can result in lower premiums or better coverage.
4. Adjust your memberships
If you pay for any sort of membership (gyms, clubs, professional organisations), it’s a good idea to look at how you’re paying. Some providers offer discounts if you move from weekly or monthly payments to an annual plan. Others may run promotions for discounted annual plans at certain times during the year. If you know you’ll continue to use the membership, switching to annual billing could lead to meaningful savings over the year.
5. Request a home loan rate review
If you have a variable home loan, it’s worth contacting your loan provider to request a rate review. Variable home loans fluctuate based on the official cash rate set by the RBA, but you don’t have to wait for an official rate drop for a lower repayment. Many people stay on higher rates simply because they haven’t asked. A small reduction in your interest rate could lead to significant savings over time. You can even set yourself a calendar reminder to request a rate review at regular intervals.
6. Look at your utilities
Utilities can often become one of those things we don’t look at, as they are an ongoing expense we can’t really do without. Start by reviewing your electricity, gas, water, internet and phone plans to see if you’re still on a competitive rate or getting the best value. Comparing providers or negotiating with your current one can lead to instant savings. You can also do some research on whether your state or territory is currently offering any subsidies.
Other small habit changes like switching appliances off at the wall, using energy efficient settings, or bundling services can also help lower bills over time. If your energy and water providers offer the ability to view your usage in real-time, it’s a good idea to keep an eye on this regularly to identify any spikes or high usage times.
7. Use what you already have
Before buying any more household products, take a look through your bathroom, laundry and kitchen cupboards. You may find half-used or forgotten items that can be used up as is or repurposed. Using up what you already own can reduce unnecessary spending and help declutter your space at the same time.
Be sure to pay attention to the expiry dates on food and toiletry items. Some can lose their effectiveness (such as sunscreen and toothpaste) or become unsafe. You can research specific items if you’re unsure.
8. Look for deals, sales and discounts
Being more budget-conscious doesn’t mean spending nothing but spending smarter. Before making any purchases, take some time to look for deals, sales or discount codes. Sign up for retailer newsletters and follow their social media accounts, check discount websites, and keep an eye out for seasonal sales on items you already need.
Planning purchases around sales or using discount platforms can significantly reduce costs over the year without impacting your lifestyle.
9. Sell unwanted items
If you’ve got items that you no longer use (such as clothing, furniture or electronics), consider selling them online. This can not only bring in some extra cash but clear up clutter at the same time. Think of it as turning unused belongings into budget breathing room. The downside to this step is that you may need to deal with a few timewasters before you get a sale.
Note: if you are unable to sell an item, consider donating it to your local op shop or a charity of your choice (some will even pick up certain items from your house directly).
10. Make the most of your health (insurance)
Health insurance can be a significant expense. Whilst you might save a bit of money downgrading your coverage or shopping around for a cheaper policy, you could be missing out on a bunch of savings if you’re not using it. Review your policy to see what extras you’re covered for, the limits, and the percentage your provider pays back.
You might discover benefits you didn’t realise you had (like massages!), or that you get more back by using registered providers (for example, certain dental clinics). Using these benefits can help you get real value from what you’re already paying for.
And remember, your limits reset every year on the first of Jan.
It’s all about creating a budget that works for you
Budgeting for the new year doesn’t have to be overwhelming. By reviewing your expenses, cutting what no longer serves you, and making the most of what you already have, you can create a budget that supports your goals without trying to make huge (and possibly unsustainable) sacrifices.
Making a few small, thoughtful changes now can set you up for a more confident and financially comfortable year ahead.
