Money, money, money

How to save your hard-earned cash

Always broke by payday? Credit card maxed out? We're all worried about rising food, petrol and housing costs, but instead of drowning your sorrows in a retail therapy sesh, take some tips from Michael Cant, head of retail products at the Commonwealth Bank.

1. Make more money

Money doesn't grow on trees; but by setting up a high-interest savings account, your money will make its own money. Sound good? Open a high-interest savings account such as the Commonwealth Bank's NetBank Saver. Set up an automatic deposit from your main account into your savings account. Sit back and watch your money grow!

2. Do your homework

Prepare a monthly budget; this will help you to be realistic about costs and necessary bills, making it easy to identify how much you can commit to saving each month.

3. Prioritise

Prioritising your costs helps you identify what you want, and those items that you actually need. This will highlight areas you could potentially cut back on, freeing up some spare cash to put into your high-interest savings account.

4. Cheap Tuesday

'Discount Tuesday' is no longer confined to the cinemas! Tuesdays really are the cheapest day to fuel up! To further save on fuel costs, try teaming up with a nearby work mate to share the driving, or using public transport.

5. Buy in bulk

Get friendly with nearby mates and neighbours and consider pooling your money to buy fruit and veg in bulk from the local produce market. It's cheaper by the box and can be easily divvied up between everyone.

6. BYO lunch and coffee

Sounds like an easy one, but packing your own lunch and sticking to home-brewed coffee just one day a week will save you around $15 — that adds up to just under $800 a year!

7. Shop around and mix 'n' match

Be smart about your purchases; invest in classic items like jeans, a trench and boots, and spend less on seasonal buys. Lay-bys are a great way to effectively plan your payments.

8. Be kind to your cash flow

Pre-empt expensive household items and try to spread out the timing of your purchase. When your toaster is on its last legs and your hairdryer is on the blink, try to determine which one will need replacing first and purchase the items in this order (rather than both at the same time).

9. Have a pot luck party

Instead of spending money on an overcrowded and noisy restaurant, invite your friends around and get everyone to bring a plate to contribute to the table.

10. Be savvy with your energy

Use the dishwasher, washing machine and dryer at off-peak times. Switch off non-essential lights and power outlets when they're not in use.