How to save over $6,000 in 2019

How to save over $6,000 in 2019

Is your wallet feeling a little flat after the festive season? Do you have a savings goal in mind for your New Year’s resolution? Luckily, we’re here to help.

We know it might not seem like it now, but saving is possible, and it doesn’t have to be a slog.

Those pennies add up over the course of the year, and with a few handy life-hacks from your friends at RateCity, you could to save more than $6,000 before 2020.

That’s more than $500 a month, and you’ll barely notice the difference.

The five easiest ways to save money in 2019 are…

Change your bank account

Are you paying monthly fees on your bank account? Stop. If you have one or more bank accounts on which you pay monthly $5 fees, you’re going to end up shedding out hundreds of unnecessary dollars.

Top tip

While you’re at it, open up a savings account. Find one with a higher interest offer that’s suitable for your circumstances, and start putting your savings into this account. This way your money will make more money. Easy.


Potential savings: $120 p.a.

Pack a lunch

If you find that you’re spending $15-20 a day on buying lunch, it might be time to start bringing you own to work.

This doesn’t have to be a huge chore, and it doesn’t mean that you need to get up an hour earlier every day. Just start up-sizing your evening cooking. Cook more than you need to, and before you serve up, put aside enough for your lunch the following day.

Bonus point: It’s usually also a healthier option.

Potential savings: $3,900 p.a.

Save on your energy bill

The worst-offending appliances could be costing you as much as $1.50 per hour to use.

From switching off your appliances when they aren’t in use, to switching your energy provider to the cheapest provider, you could just be a few clicks away from saving on your bills.

Potential savings: $2,000 p.a. 

Consolidate your debt

Do you have multiple debts that are weighing you down? You could consolidate them all into one lower-interest-rate loan

Potential savings: $100 – $1,000 p.a. 

Quit the gym

This may sound like it goes against your New Year’s resolution plans, but hear us out. 

If you’re a real gym nut, who attends classes every day and uses all the equipment, you can skip this one. You’re getting the most out of your membership. Good for you.

But let’s be honest, that isn’t most of us. One alternative is to use YouTube – there are some great workouts online that you can watch that are totally free and that you can do at home.

You could also run on your lunch break, or even start walking to work (if you feasibly can) and save yourself even more money on travel.

Potential savings: $600 p.a.

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Learn more about savings accounts

How do I open a savings account?

Opening a savings account is a relatively simple process. If you’ve found an account with a suitable interest rate, you’ll just need to get in contact with your chosen lender via a branch, phone call or hop online to begin the process. 

You may be required to provide:

  • Personal details, including identification (driver’s license, passport etc.)
  • Tax file number
  • Employment details

Can you set up direct debits from a savings account?

It’s not usually possible to set up a direct debit from your savings account to cover ongoing expenses or bills, as savings accounts are structured around growing your wealth by earning interest on regular deposits, and discouraging withdrawals.

Some transaction accounts allow you to set up direct debits and also earn interest, though you may not enjoy as much flexibility as a dedicated transaction account, or get as high an interest rate as a dedicated savings account.

What is a good interest rate for a savings account?

A good rule of thumb to keep in mind with savings accounts is to look for a rate that is higher than the CPI inflation rate. This number is constantly changing, so check the Reserve Bank of Australia’s page. If you aren’t earning interest above this then the value of your money will go backwards over time.

How to make money with a savings account?

Savings accounts make you money by earning interest on your savings. The more money you deposit, the longer you leave it in the account, and the higher the account’s interest rate, the more interest you’ll be paid by the bank or financial institution, and the more your wealth will grow.

To make sure your savings account makes money and doesn’t lose money, it’s important to maintain a large enough minimum balance that the annual interest earned exceeds any annual fees charged on the account.

How much money should I have in my savings account?

A good rule of thumb when working out a minimum balance for your savings account is to make sure that you’ll earn more in annual interest on your savings than what you’ll be charged in annual fees.

If you’re saving with a specific goal in mind, prepare a budget so the interest you earn on your deposits will help you efficiently reach this goal. Online financial calculators may be helpful here.

What is a savings account?

A savings account is a type of bank account in which you earn interest on the money you deposit. This makes it one of the easiest and safest investment tools.

How can I get a $4000 loan approved?

While personal loans and medium amount loans don’t offer guaranteed approval, there are steps you can take to help increase the likelihood of your application being approved, including:

  • Fulfilling the eligibility criteria (providing ID, proof of residency, proof of income etc.)
  • Checking your credit history (you can order one free copy of your credit file per year, and make sure that there aren’t any errors that may be bringing down your credit score)
  • Comparing carefully before applying (making multiple loan applications can mean having your credit checked multiple times, which can look bad to some lenders and reduce your chances of being approved by them)

Who has the highest interest rates for savings accounts?

As banks frequently change their rates, the most accurate way to know who currently has the highest interest rate is to use a savings account comparison tool.

Can you set up a savings account online?

Yes. Several large and small banks offer online applications for savings accounts, and there are also online-only financial institutions to consider.

Online-only savings accounts are often less expensive than other savings accounts, though they may not offer the same flexibility, features, or face-to-face service as more traditional savings accounts.

Can you have a joint savings account?

Yes. Joint savings accounts can be useful for two or more people wanting to combine their savings to meet shared financial goals, including spouses, flatmates and business partners.

Some joint savings accounts require all parties to sign before they can access the money. While less convenient, this extra security can help encourage all parties to meet their shared financial goals.

Other joint savings accounts allow any of the account holders to access the money. These accounts can be convenient for financially responsible couples that trust one another implicitly. 

How to open a savings account for my child?

Some banks and financial institutions allow parents to open a bank account for their child as soon as it is born, and start depositing funds to go towards the child’s future.

Children’s savings accounts generally don’t have fees, and are structured to help develop positive financial habits by limiting withdrawals, encouraging regular deposits, and earning interest on the savings, similarly to standard savings accounts.

Can I overdraft my savings account?

A lot of savings accounts won’t let you overdraw. Some will allow this feature but you’ll need to apply first. It’s best to read the fine print and check with your lender whether this is a feature they offer. It can be a helpful addition, but as your lender can charge you a fee as well as interest for going into negative numbers, it’s best to avoid overdrafting when possible.

Can you direct deposit to a savings account?

Yes. You can make one off payments or set up regular direct deposits into a savings account. This can be organised easily through online banking or by making deposits in a branch. Talk to your lender to find out the easiest way for you to set up direct deposits.

What is the interest rate on savings accounts?

As banks frequently change their rates, the most accurate way to look at interest rates on savings accounts is to use a savings accounts comparison tool. When you look at the savings rate check what the maximum and minimum rates are. Often banks will offer you a promotional rate for the first few months which is competitive, but then revert back to a base rate which can sometimes be less than inflation. Ongoing bonus rates are often a safer bet as they will keep rewarding you with the maximum rate, provided you meet their criteria