Spring clean your finances: 6 smart ways to save

Spring is the perfect time to get all your financial ducks in a row. Here are 6 tips for cleaning up your finances before the holiday season.

With multiple accounts, subscriptions and payment methods to keep track of, managing your money can feel overwhelming. But spring is the perfect time to take stock and simplify your finances.

“Money is a journey,” says Silvia Pothoven, National Manager for Corporate Benefits at Gallagher. Gallagher partners with Qudos Bank to provide staff access to MoneyFit, a financial wellbeing program designed to help people feel more confident and in control of their money.

We asked Silvia for her top tips on spring cleaning your finances – from cutting back unused services to finding better deals on everyday expenses.

1. Cancel unused subscriptions

Start by reviewing your streaming and subscription services. The average Australian household pays around $41 per month on streaming alone – almost $500 a year, according to Canstar. “Whether they’re work-related or home-related, nine times out of 10, you’ve probably got a streaming service that you’re not really using,” Silvia says. “Deactivate it.”

2. Revisit your utility bills

Electricity and gas are another area where many Australians overspend. The ACCC estimates that four out of five of us pay more than necessary, often referred to as the “loyalty penalty”.

“Energy and gas typically have discount periods,” Silvia says. “When that discount period expires, people just let it lapse. But if you don’t review it or shop around for a better deal, you’re probably paying at least 20% more than you should be.”

3. Budget as a team

If you haven’t reviewed your spending in a while, Silvia recommends going through your bank and credit card statements to track exactly where your money goes – groceries, entertainment, petrol, takeaway.

And if you’re in a relationship or live with your family, do this together. “It’s actually shocking what you can learn about your spending habits,” she says. “When you sit down together, it gives you a real insight on how each of you approaches money.”

4. Press pause on any unused memberships

Gym or club memberships can quietly drain your finances if you’re not using them.

“If you’re not actually going to the gym or the sporting event, at least pause your membership until you get motivated to go again,” Silvia says. “That’s the sort of thing that will make a real difference to your back pocket.”

If you can’t pause or cancel, at least try and negotiate a reduced fee. State consumer laws may protect you against any unfair contract laws, so check your local consumer affair website for more information.

5. Use staff benefits or rewards

Many employees aren’t aware of the full value of their workplace benefits. Silvia suggests reading through your contract and making the most of what’s on offer. “Many employers have some kind of benefits package,” Silvia says. “It might be attached to insurance, a rewards platform, or access to products and discounts.”

Even if your workplace doesn’t have this, you can still take advantage of supermarket or other loyalty reward programs. “I know I’ve saved $1100 in my pocket this year, just by using the discounts on the apps,” Silvia says.

6. Plan ahead for the festive season

According to ASIC, the average Australian adult spends about $800 on Christmas gifts, holidays and celebrations. Yet only 29% of people actually stick to their Christmas budget.

“I set a family Christmas budget, and everything needs to fit within that,” Silvia says. “But how that budget gets allocated changes every year. That way you’ve got some flexibility. If you’re too defined with your budget categories, it’s easy to get overwhelmed, so it’s usually better to set one figure and try and fit everything within that.”

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