The savvy way to save in 2022

The savvy way to save money in 2022 

Last updated: 02 February 2022

As you revel in this glorious Australian Summer, COVID still lurking but with the optimism a new year brings the bright, sunny days buoying your spirits, take a moment to reflect on your goals for the year ahead. In particular, your savings objectives. What is your motivation? Are you saving for something special or simply to have a buffer for whatever 2022 may throw at you? Most importantly though, how are you actually going to save your hard-earned dollars??? 

 We have identified some savvy tips to help you on your savings journey! Read on to find out what you can do differently this year to save money and get ahead on the financial front… 

1. Review your spending 


With the Festive Season now in the rear-view mirror, it’s time to pop down the glass of bubbly and focus! It might be a scary prospect but reviewing your expenditure and understanding the difference between needs and wants is so important. Did you really need to buy your best friend and their sausage dog matching personalised Christmas sweaters with the bespoke packaging option? December is often a big month for expenditure on entertainment and gifts…and it’s incredibly easy to get carried away! So, review your spending accordingly and focus on what your needs really are – this will give you a clear picture of your spending habits. As boring as it might sound, review your bank and credit card statements and categorise your spending (ie. utilities, insurance, medical, transport and of course debt). This could unveil where you can cut back and kick some real savings goals (and not just by holding back on extravagant Christmas gifts!). Delay in reviewing your spending means delay in making savings, so it’s important to start and regularly check-in on how you’re going. 


2. Get the real picture of your credit life 


Understanding your credit score is an important step towards taking control of your finances. A credit score or credit rating is a number that depicts how creditworthy a person is. The higher the number, the better – you pose less of a risk to lenders as you are considered capable of servicing a loan. This number is calculated by analysing your credit files throughout your adult life. Check out your Experian credit score for free with Credit Savvy 👉 SIGN UP HERE  


3. Set your budget for the year ahead


Knowing your spend history will help you create a realistic budget for the year ahead and identify ways to cut down on your spending. Remember, the only way to really get in front financially is to spend less than you earn! It may help to categorise your expenditure by essential and non-essential items. Which category are you spending the most on? Do you really need every streaming service available and to be getting Uber Eats delivered every other day? When establishing your budget, be realistic and include a regular amount to save for the unexpected or emergencies, as these expenses are the ones that can often blow the budget. We really like this budget planning tool from Moneysmart 👉 BUDGET PLANNER 


4. Look for better deals


Make the most of your essential spend and see if there are better deals out there – ensure the expenditure benefits you! Consolidating your personal loans is one way to reduce not only the stress of juggling multiple debts, but also interest rates and fees payable. Additionally, renegotiating the rates on your loan may be a way to save money. Compare your personal loans here with Credit Savvy 👉 COMPARE


Many credit card companies offer rewards programs, select the one that has connections with your favourite online or bricks and mortar retailers, or offers the best incentives or deals. Compare your credit cards here with Credit Savvy 👉 COMPARE


Think long and hard about using a Buy Now, Pay Later payment method. Remember, you are never going to get ahead with your savings by spending more than you earn! Perhaps set a personal rule for yourself that states you will not be tempted to buy something if you don’t actually have all the funds available to make a purchase, therefore avoiding unexpected (and perhaps unnecessary) spending! 


If you have the budget to spend then there are a number of websites, like Little Birdie or apps like Cheddar, that can help you score a deal. The new app on the block, Cheddar, provides tailored deals and cashback offers to savvy shoppers helping them save as they spend.  With over 600+ brands to choose from and some exclusive offers, earning cashback while shopping with Cheddar could help put some money back in your pocket and score a deal on the goods you need!


5. Avoid late fees


Setting-up direct debits or scheduled payments to avoid late fees on recurring bills is a great way to keep on top of your outgoings. Most utilities and banks offer this payment method and it is a sensible way to ensure your bills are paid on time, avoiding the risk of defaulting on a payment if you are not organised with your finances and it potentially impacting your credit score. 


 6. Stay savvy all year round 


If you are saving for a big-ticket item, it is a good idea to set-up alerts on your web browser for the best prices available, or to use a shopping app like Cheddar or Little Birdie to help you save while you shop. Being a savvy shopper is all about knowing what is out there to help you save money and achieve your savings goals! 


So, drink in all the goodness of Summertime in our sunburnt country, and take this time to renew, rejuvenate and reflectsoon enough the responsibilities of the year ahead will appear on the distant horizon. Be prepared, set yourself a savings target or goal and try out our savvy money saving tips. Get on the front foot financially and see 2022 off to a great start!