Frugal hacks for smart savers 💰
Written by Glen James
Host of the Retire Right & money money money (formerly my millennial money) podcasts & author of The Quick-Start Guide to Investing.
I’m going to be honest, I’m not the frugal hacks type. But I know that in our community there are many people who love a good frugal hack! So of course I asked everyone to share their top frugal tips and here they are:
1. check your phone and internet bills​
​Michelle suggested taking a closer look at your phone and internet plans: ‘there is usually someone cheaper.’ Many of us stick with the same provider out of habit, but if you take a few minutes to compare deals, you might find a better offer. They also have a habit of creeping up pricing slowly over time, without changing or improving your service at all. Sometimes your current provider is offering a better deal to new customers so give them a call and ask for the same deal to be applied to you. Ask your current provider to match a competitor’s deal as well—often they’ll offer a discount to keep you. Give it a go—you’ve got nothing to lose!
2. use ChatGPT to plan meals with what you’ve got​
​This is genius and I need to try this one. Tara has a clever way to save money on groceries: ‘write a list of ingredients you have at home into ChatGPT and ask it to write you a recipe.’ If you’re not familiar with ChatGPT, it’s an AI tool that generates answers and ideas, including recipes (you can download the app or use it online). List what’s in your fridge, and it’ll give you meal ideas so nothing goes to waste. Plus, you're outsourcing the brain work. I’m bored of coming up with new meal ideas every single day, aren’t you?
3. compare insurance every year​
​Beth suggested checking your insurance costs regularly: ‘compare insurance costs every year.' Loyalty doesn’t always pay with insurance companies, so take a little time each year to compare rates for car, home, health, and even pet insurance. You might find a better deal and save hundreds. Insurance costs can creep up without you even noticing, so a quick annual check can save you serious cash. And don’t be afraid to negotiate with your provider—it’s your money, after all!
4. save on pet care with homemade food​
​Larni shared a great tip for pet owners: ‘I have two groodles, so I feed them quality dry food and add a scoop of homemade stew. Chicken necks from the butcher cost me $2.50-$4.00 a bag.’ Pets bring us so much joy, but they can be expensive. I’ve seen people spend thousands every year on their pets, so keeping an eye on costs is essential. Bulk-buying and adding homemade options like Larni does can make a big difference. Don't forget a lot of pet brands price-match as well.
5. ditch the car for your commute
​Todd’s hack is all about saving on transport costs. ‘I ride a scooter to work—it costs me $3 a day compared to $12 in the car.’ Petrol, parking, and car maintenance can really add up. If you’ve got a short commute, a scooter or public transport can save you heaps over time. This is such a simple but effective idea—those savings add up quickly. This might not be an option for everyone depending on what public transport is like where you live, but if it is an option do a quick calculation and see what you could save leaving the car at home.
6. use shower water for your garden​
​I’m sure there are a few green thumbs in our community! Barbara has a great water-saving tip: ‘buckets in the shower for garden watering.’ Instead of letting water go to waste, collect it and use it to water your plants. It’s an eco-friendly and cost-effective way to keep your garden green. Small changes like this can make a noticeable difference over time, especially with Australia’s dry climate. Plus, your plants will love that extra water, and you’ll feel good about not wasting a drop.
Thanks to everyone who shared their tips!
Community question
Olivia asks: If you have $1 million in super at age 60, with $500,000 in each account for a husband and wife, and you earn 8% in that year, will the $80,000 of investment income be taxable? Can you live off this tax-free?
Glen: Thanks for this Olivia! The earnings inside your super fund don’t affect your personal tax return, whether you’re in accumulation phase or pension phase. Your super fund handles tax lodgement on your behalf, so what you gain or lose on the investment side has no impact on your personal tax return. If you're over 60 and retired, most super funds in Australia allow you to withdraw money tax-free, which means that $80,000 from your super won’t be taxed.
However, if you’re still working and haven’t fully retired, you might still be in accumulation phase or a transition-to-retirement phase. In this case, the earnings in your super fund may be taxed at the super fund rate of 15%. This tax is entirely separate from your personal income tax, and the goal for most Australians is to move into pension phase when they retire, so that their super earnings and withdrawals are tax-free.
In general, it’s important to remember that once you move your super into pension phase, you can enjoy the benefit of a tax-free income stream. For most people, the key is to keep your superannuation within that tax-advantaged environment and plan ahead so you can maximise these benefits. Always review your financial situation to ensure your super is set up in a way that supports your lifestyle in retirement. If you're not sure, getting advice from a professional can help avoid costly mistakes.
