Energy Tips
How to Cut Monthly Expenses: 9 Clever Ways To Save
Start fresh by implementing these easy tips to help lower your monthly bills
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Important Points
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As the cost of living continues to increase, now’s a good time to re-evaluate your finances, especially if covering your usual bills is starting to feel a bit more difficult than it used to.
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Even with careful planning, many households are starting to notice that their budgets don’t go as far as they once did.
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Monthly budgeting matters more than ever, and understanding where your money goes can give you more breathing room.
It’s no secret that the cost of living in Australia keeps climbing, and the latest data from the Australian Bureau of Statistics (ABS) backs it up. Even though household spending dipped¹ slightly in March 2025, that small drop follows months of steady increases. In fact, Aussies are still spending more overall compared to last year, with expenses like insurance, health, food, and transport taking up larger portions of the average household budget.
Meanwhile, wages haven’t kept pace, interest rates remain high, and many families are feeling pressured to stretch every dollar. If it feels like your money isn’t going as far as it used to, you’re not the only one. That’s why now is the perfect time to take a closer look at your monthly expenses, and find realistic ways to cut back.
1. Build a Budget That Actually Works
If you’re serious about saving money and cutting monthly expenses, the first step is to take a closer look at where your money is going.
A budget isn’t just about tracking what you spend, it’s an invaluable tool for understanding your habits, your income vs expenses, and keeping your finances in check. Done right, a budget gives you a clear overview of your financial situation and helps draw out a visual roadmap of what your future financial goals are, whether it be saving for a vacation, paying off debt, or simply having a bit more breathing room each month.
Ironically, many people avoid budgeting because they think it’s too restrictive or time-consuming, but the reality is quite the opposite. The key is to create one that matches your lifestyle, not someone else’s. This means coming up with a practical system that works for you, whether that’s using a budgeting app, setting up automated transfers to your savings account, or even writing it out with pen and paper.
The most important part? Consistency. Making time to review your budget regularly, like every few months or after any big change like purchasing a new home or even downsizing, could help you spot areas of overspending so you can adjust your strategy. Remember, budgeting isn’t a one-time fix; it’s a long-term habit that can shape how you manage your money. Once you’ve laid this foundation, everything else, will gradually become much easier and more effective. Here are some common methods you can try out:
Envelope system
Use multiple bank accounts or budgeting apps to set up digital “envelopes” for your spending. Assign each one to a specific category, like groceries, bills, or entertainment, and transfer a set amount into each at the start of your budgeting cycle. Once a category runs low, you know it’s time to pause spending in that area until the next period. This method helps you stay on track without needing physical envelopes or cash.
Zero-based budgeting
Zero-Based Budgeting (ZBB) is a method where every dollar of your income is assigned a specific purpose, so that your income minus expenses equals zero by the end of the budgeting period. This approach requires you to justify all expenses for each new period, instead of basing budgets on previous spending.
Automated transfers
Automated transfer involve setting up regular, automatic transfers of funds from your checking account to savings or other designated accounts. By scheduling these transfers to coincide with your payday, thet portion of your income is saved before you have the opportunity to spend it, effectively “paying yourself first.”
Expert Tip
Instead of labelling your budget categories with dry, boring titles like “Utilities” or “Groceries,” rename them in a way that reminds you why you’re spending, like “Gas for the Week”, “Summer Vacation” or even “Monthly Treats”.
2. Make the 50/30/20 Rule Work for You
If you’re not sure where to start with budgeting, the 50/30/20 rule is an effective place to start. Here’s how it breaks down:
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50% of your income goes toward your core bills (think rent or mortgage, groceries, bills, and transport)
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30% is for the things you enjoy, like going out, streaming services, hobbies, or that weekend treat
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20% is for building your future (saving, investing, or paying down debt)
The great part? This rule gives you structure and flexibility. Not everyone’s budget fits neatly into these exact percentages, and that’s okay. If your rent is a bit higher, maybe you trim back the “fun” category. Or if your focus is on saving for a house or paying off a credit card, you might raise the savings portion instead.
The idea isn’t to follow it perfectly, it’s to help you see where your money is going and promote long-term savings. Make it work for your lifestyle, not the other way around.
23. Compare Energy Plans
According to the Australian Bureau of Statistics (ABS), all household types experienced increases in housing costs, primarily driven by rising electricity bills. For example, in Brisbane, most households have exhausted the $1,000 Queensland State Government electricity rebate, leading to higher out-of-pocket electricity expenses. Additionally, households in other states and territories faced electricity bill increases due to the timing of the 2024-25 Commonwealth Energy Bill Relief Fund rebate payments.
This is why it’s important to check your current energy plan to see if you’re overpaying. If you haven’t switched your plan recently, there’s a good chance you’re paying more than you should. According to the Australian Energy Regulator, a typical home could save up to $514 a year² by switching from a standing offer to the cheapest market offer.
Need a new connection or looking for a better deal? Enter your postcode to compare plans and providers in your area and get connected.
34.Slash Your Grocery Bill
We’ve all been there, standing in the supermarket aisle, shocked at how quickly prices have crept up on everyday goods. With grocery bills trending upwards, it’s easy to feel like your money doesn’t go as far as it used to.
Start by planning your meals around what’s on sale. It might sound simple, but basing your weekly meals on discounted prices can cut your costs by as much as 50%. Tools like Tiktok, or even good old-fashioned catalogues, can help you come up with easy, affordable ideas that align with your weekly or monthly budget. Trust us, once you get into the habit, it becomes second nature.
Buying in bulk, switching to generic brands, and making the most of loyalty points can also help you save more each week.
Expert Tip
If you really want to challenge yourself, try a “pantry challenge”: use up what’s already sitting in your fridge or cupboard before doing another big shop. Not only is it satisfying, it also cuts down on waste and surprises you with how much you already have on hand.
5. Cancel or Pause Subscriptions You Don’t Use
Let’s face it, we’ve all signed up for a “free trial” or monthly service that we meant to cancel, and then forgot about. While $5 or $10 a month might not feel like much, multiply that by several unused subscriptions and you could be spending hundreds each year without even realising it.
Doing a quick review of your subscriptions every few months can add up to a significant amount. Whether it’s streaming platforms, fitness apps, or services you barely remember signing up for, the savings can add up. It’s all about getting a grasp of what recurring charges are flying under the radar.
Here are a few easy ways to start:
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Cancel that gym membership you haven’t touched in months, especially if you’ve swapped workouts for walks or at-home options.
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Delete shopping and streaming apps that tempt you to spend impulsively.
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Check your bank statement for auto-renewals and unsubscribe from services you no longer use.
It might feel like a small step, but cutting back on all of the clutter can get you a bit more financial breathing room.
56. Limit Impulse Purchases
Impulse spending is one of those habits that can quietly eat away at your income without you noticing. From a spur-of-the-moment online order to grabbing takeaway on a night you planned to cook, these seemingly harmless purchases can quickly stack. In Australia’s current cost-of-living climate, being intentional with how you use your income is more important than ever.
Take a look at these shopping strategies and see if you can apply them to your lifestyle:
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Shop second-hand or join local Facebook groups and community pages to find free or discounted items.
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Take advantage of cashback websites, rewards programs, or loyalty points to earn back some money on your purchases.
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Wait on non-essential purchases by a few days; if the desire to purchase is still there after a week, then consider getting it.
7. Borrow Instead of Buy
Before you hit “add to cart” on that item you’ll only use once or twice, ask yourself: Can I borrow this instead?
From power tools and gardening gear to party supplies or even baby items, borrowing can be a budget-friendly alternative to buying brand new. If you only need something for a short time, like a high-pressure cleaner for your driveway or a cake stand for a party, chances are someone you know already has it collecting dust in a garage or cupboard.
Ask your friends, family, or neighbours. You’d be surprised how many people are happy to lend a hand (or a hedge trimmer). You can also join local community groups on Facebook where people give away, lend, or trade items within your area.
Did You Know? Some libraries now offer more than books, think sewing machines, board games, musical instruments, or even tools through local “library of things” programs.
78. Lower Your Housing Costs
For most Australians, housing is the single largest monthly expense, whether you’re renting, paying off a mortgage, or covering other household bills. And while it might seem like a fixed cost, there are actually several ways to free up some room in your budget.
A good place to start is by reassessing your current living situation. If you’re renting, are you paying above market rates for your area? It may be worth negotiating with your landlord, especially if you’ve been a reliable tenant. If you’re open to change, consider downsizing, finding a roommate, or looking into more affordable areas; even a modest shift in rent can make a huge difference.
If you’re a homeowner, it’s worth taking a look at your mortgage. With interest rates changing all the time, refinancing could get you a better deal and bring down your monthly repayments. And while you’re at it, don’t forget about your home insurance. Comparing policies once in a while might save you a good amount of money, without skimping on the protection you actually need.
89. Rethink Lifestyle Creep
As income grows, it’s easy to spend more without realising it, commonly known as lifestyle creep. Over time, small indulgences become everyday habits, and your expenses rise to match your income, which leaves little to no room for savings. Or worse, it puts you into debt.
If you’ve already created a budget, or are using one of the methods we’ve listed above, take some time to see where your money is really going and ask yourself whether those purchases are genuinely improving your quality of life.
Here are a few ways to stay in control:
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Identify expenses that don’t bring lasting value, like that daily $6 coffee or consistently getting takeout.
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Replace them with cost-effective alternatives, such as making your coffee at home, cooking or meal-prepping.
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Tackle simple DIY tasks instead of hiring someone, whether it’s painting, basic repairs, or yard work, you might save more than you think.
Final Thoughts
Managing your monthly expenses can feel overwhelming, especially when the cost of living keeps driving costs higher. But, you don’t have to overhaul your entire lifestyle to start seeing a difference. Even small, thoughtful changes, like reviewing your bills, planning meals, or switching providers, can help reduce the monthly pressures that are plaguing your finances.
Everyone’s situation is different, so it’s important to find what works best for you. Start with one or two ideas from the list and build from there. These aren’t quick fixes, but steps that can help you feel more in confident and control of your money.
Author
Benjamin TomBenjamin is a utility specialist passionate about creating informative content about the energy, internet, and solar markets. With extensive experience in the telecommunications industry, Benjamin drives our unique blog posts, articles, and reviews. He is focused on breaking down the technical jargon so our readers can better understand the telco market and industry. Whether he is comparing the latest internet deals or creating unique guides, Benjamin takes great pride in creating helpful, easy-to-read content.
Sources:
¹Australian Bureau of Statistics, Monthly Household Spending Indicator – March 2025. https://www.abs.gov.au/statistics/economy/finance/monthly-household-spending-indicator/mar-2025
²Retail energy market performance update for Quarter 2, 2024–25, Australian Energy Regulator (AER),
³https://www.aer.gov.au/publications/reports/performance/retail-energy-market-performance-update-quarter-2-2024-25
