Top 5 Money saving tips from Michelle

If you're looking to save a little more cash and clear up your debts it might be time to look back at what you're spending your money on. 

Having the wrong home loan or car insurance and not paying your bills on time could all be contributing to that widening hole in your wallet.

But even smaller things like not writing a shopping list or buying lunch at work each day could also worsen your money woes.

Michelle Thompson-Laing knows all about how to save money - she runs a website on the subject – we spoke to her this week on the Daily Drive

1. HAVING THE WRONG HOME LOAN 

'If you’ve got a mortgage of $450,000 (the average Australian mortgage) then a 1.5 per cent drop in your interest rate could save you $6750 a year.

'Even changing to a mortgage that gives you a 0.5 per cent better interest rate could save you $2250,' Ms Thompson-Laing wrote.

If you're living in Sydney, and suffering alongside exorbitant house prices, you could be saving as much as $10,000 a year by altering your loan. 

2. NOT GETTING THE BEST INSURANCE

'Insurance prices change every year. If you’ve just been renewing for the last few years, without comparing your options, then chances are you are paying too much.

'On average I manage to save $20-$30 per month per insurance each year by shopping around (compared to the new quote I’m given by my current insurer). Often you can take a quote you’ve been given by a competitor back to your insurer and get them to match it,' Ms Thompson-Laing said.

But don't just check up on your car insurance. It's worth getting a quote for your home and health as well. 

'If you save $20 a month on three different polices (home, car, health) then that could add up to more than $700 a year. If it has been a while since you compared then my guess would be you’ll be able to save more than $1000,' she said.

3. SHOPPING WITHOUT A LIST

'If you head to the supermarket without a list each week then you can be guaranteed to buy stuff you don’t need (and forget stuff you do). You will also spend more,' she said.

'Meal plan and then shop with a list. Estimated saving: $50+ a week ($2600 a year),' she continued.

Another tip is to eat before entering the supermarket. If you shop on an empty stomach you're more likely going to buy snack foods you wish you were eating.

Another tip is to eat before entering the supermarket. If you shop on an empty stomach you're more likely going to buy snack foods you wish you were eating

4. BUYING LUNCH AT WORK  

'$10 a day on lunch, five days a week, adds up to $2600 a year. Even if you only make lunch three days a week, and buy two days, you’ll still save over $1500 in a year. 

'We just booked return flights to Fiji for four of us for less than that,' Ms Thompson-Laing said.

Meal prepping is a good way to avoid binging at work. If you have breakfast, lunch and dinner worked out on Sunday before your week begins you'll more likely stick to the schedule.

5. PAYING YOUR BILLS LATE 

'Many utility companies offer a discount of up to 10 per cent for paying your bill early or on time and most companies add a late fee or interest for paying late. The same applies to credit cards where missing your payment deadline can result in additional interest or late fees.

1. Changing your home loan: $6750

2. Altering insurance: $700

3. Shopping with a list: $2600

4. Making lunch at home: $2600

5. Paying bills on time: $600 

CLICK HERE TO LISTEN TO THE INTERVIEW WITH MICHELLE

CLICK HERE TO GO TO MICHELLE'S WEBSITE

Any advice given is general in nature and may not be right for you. If in doubt about the appropriateness of the advice, given your own objectives, financial situation and needs, you should seek personal advice