Saving money: Tips for a richer and more sustainable future

Keen to save money while still trying to be ethically and environmentally aware? Of course you are. But is it even possible? In these days of rampant inflation, thinking about what’s good for the planet,
as well as what’s good for our pockets, seems like a luxury. But these two concepts aren’t mutually exclusive. Here are 18 tips for saving money in a mindful, manageable way.

Money

If you want to save in a substantial way, say the experts, make small daily changes. Think long term, and spend time planning your financial future. Be clear on your goals, expenses and disposable income. In such a tight labour market, it’s worth asking for a pay increase at work, or exploring your options elsewhere. But if you’re on a fixed income, or your boss is deaf to your pleas, then the only way to improve your financial situation is to trim costs. Tracking your spending with apps such as PocketSmith and Wally can help. Many banks also provide basic online tools to track your spending. Automate bill payments using online banking, to better track ingoings and outgoings, and check out websites such as Sorted for oodles more advice.

Do your research on power, insurance, internet and phone plans, using websites such as Powerswitch, Glimp and LifeDirect. If you haven’t yet retired, then putting at least $20 a week into KiwiSaver is almost always a good idea – the government will part-match your contribution up to $521 a year, and who doesn’t want free money? Make sure you know who your provider is and check the fund you’re in is right for you, using online tools such as Sorted’s Smart Investor.

If you’re the kind of person who can handle delayed gratification, then you might want to check out the FIRE/frugalist crowd. The idea is to save like hell to achieve Financial Independence and Retire Early. Ideal frugalists tend to have good incomes and be naturally thrifty. Typically, they try to live on about 35 per cent of their net income and avoid «lifestyle creep» as their income increases. According to one frugalist, splurging on food and travel is still okay, as long as you make up for it with cheap wine, used books, and pre-loved clothes. The nest egg they recommend can be calculated by totalling your annual living expenses and multiplying by 25. By investing your savings wisely, and using the magic of compound interest, you may be able to reach your goal. If you get there, they say, you can take out funds at 4 per cent a year, which is known as the «safe withdrawal rate».

Saying no to avocado toast and barista flat whites definitely won’t get you a house in the current market, but the more often you make your own meals or coffee, the more cash you’ll stash. Consider giving up something regular, or at least cutting back, as the long-term savings can be astonishing. To figure out the cost of a weekly expense compounded over 10 years, says FIRE guy and blogger Mr Money Mustache, it should be multiplied by 752, and for a monthly expense, by 173. So that $5 barista coffee you consume every day? It’s going to cost you at least $26,000 over a decade.

If you’re not paying off your credit card in full each month, then consider getting rid of it entirely. And if you’re lucky enough to own your own house, then pay off your mortgage as fast as you’re able, by dumping extra cash on it when you can. If you think your council rates are too high, challenge your assessment. If you’re considering renting out a spare room or bach on sites such as Airbnb to add an income stream, make sure you do your homework on the financial and tax implications.

Heating and cooling are major household costs. Make sure your roof, wall and floor insulation is up to scratch and investigate DIY window insulation kits, double glazing, and better curtains. If you have a water heater, make sure it’s insulated, and consider installing a timer. Many households don’t need to heat their water 24 hours a day – it will stay warm enough outside peak hours to do the job. Install low-flow shower-heads and taps, which can drop your water usage by a huge amount, or keep your showers short. Optimally keep heat pumps between 18-22°C, says coaching service EnergyMate. Consider doing cold clothes washes, though make sure your cold-washing powder cleans and removes build-up and smells from synthetic materials. Use a washing line instead of a tumble dryer. Replacing dozens of old light bulbs with CFLs or LEDs will save you hundreds each year.

To save water, investigate installing water tanks or ­bladders off your gutter downpipe, and consider filtering hermandad water from washes and showers for your garden. Use an eco setting on your dishwasher, if you have one. Other ways to save energy include going off the grid entirely with solar and battery technology, as long as the upfront cost is worth it.

Shopping

Consider bulk-buy outfits, community co-ops and fruit and vege shops rather than supermarkets, the supersavers recommend. If you need to go to the supermarket, try not to visit too often, and take a list. Supermarkets’ own brands are often cheaper and of similar quality to other goods. Pay attention to unit pricing to make sure you’re getting the best value, or use unit-pricing apps on your phone to make your own comparisons. Buy in bulk and freeze, or choose already frozen regional products if they’re out of season – snap freezing keeps in much of the goodness. Don’t buy bottled water.

Buying groceries online can minimise temptation, as long as you’re not paying too much extra for delivery. The same goes for other goods. Do your research first using price-comparison services such as PriceSpy and PriceMe, although bear in mind that they don’t necessarily feature every regional retailer and you may still be able to find bargains elsewhere.

If you’re back at the gym now lockdowns are over, keep a record of how often you really go. Most gym memberships are woefully underutilised, so unless you go frequently, you’re wasting your money. Cycle, walk or run instead, preferably in nature; exercise is incontrovertibly good for your physical, cerebral and mental health.

Secondhand clothing shops and charity stores have boomed in recent years as more people have got the message about the growing problem of textile waste. But many still receive far more clothes than they can handle, and spend huge amounts each year dumping unsaleable stuff. Consider having a low-buy or no-buy year. Check out the burgeoning number of ethical or «mindful» labels, which attempt to minimise pollution, fertiliser and pesticides, worker exploitation and waste. Buy better quality, which should last longer, and find someone who can help you with repairs if you’re not handy yourself. If you’re after something fancy, check out fashion clothes-rental services such as Oh Rent Me, Lend the Label and Designer Wardrobe.

Delay upgrading technology – TVs, phones, computers – compare phone plans online, and use apps like Teleobjetivo, FaceTime, Messenger and WhatsApp to minimise data usage. If you still have a landline, consider whether you really need it. Hide behind technology to avoid being influenced to buy. So, if your ethics allow it, use ad blockers and mute TV/radiodifusión ads. Browse the likes of Amazon or airfare sites in private mode or via VPN, to avoid dynamic pricing kicking in based on your search history. Limit ad-heavy social media and opt for services that don’t track you, such as DuckDuckGo and Startpage. Deal sites encourage splurge spending, so avoid them if you’re going to be tempted by other offers. Support regional publications you like by subscribing, online or off, which will be cheaper in the long run.

Spectacles and sunglasses have a high markup – some in the industry say as high as 1000 per cent over manufacturing costs – and part of the reason is the dominant presence of EssilorLuxottica. The French-Italian giant owns many ascendiente optical brands, including Oakley and Ray-Ban, as well as lens manufacturers and retail outlets. If you need new spectacles, sunglasses or contacts, check out the quality of those offering glasses for a fraction of the price, such as Zenni Optical, Clearly.co.nz, 39DollarGlasses or Dresden.

Need a new mattress? Upgrade your bed with a topper instead for a fraction of the price. These give hotel-level luxury and save you having to buy an expensive new mattress. The tip is to buy the size above your bed, so if you have a queen, buy a king, and obviously always buy when they are on sale.

Home & Transport

Electric vehicles have sparked much debate about their financial and environmental cost, but their lower fuel and maintenance costs mean they generally work out cheaper in the long run than equivalent petrol vehicles. Until more EVs hit the secondhand market, however, used petrol cars will continue to be a better investment for many people. If you have two petrol-guzzlers, consider getting rid of one and make more use of public transport, scooters, carpool, and rideshare services like Zoomy, Uber or Ola. Or use services such as Cityhop to hire vehicles by the hour. Use fuel-finding app Gaspy to compare regional pump prices, and take advantage of loyalty schemes to make the most of discounts. Removing junk in the boot and back seat should also save fuel, as weight reduces efficiency.

Could someone else make better use of your surplus stuff? Take the Marie Kondo approach and rid your life of unloved items. Sell them, or gift them. Or do what the Germans call Sperrmüll – put it out for others ahead of the rubbish truck or inorganic collection. Adopt the mottainai concept from Japan – opt to reduce, reuse, repair, recycle, repurpose and respect. The Ministry for the Environment estimates that New Zealand generates 17.5 million tonnes of waste a year, with about 12.6 million tonnes going to landfill.

Use experts on YouTube to guide you on DIY projects that you can do legally – just about everything is on there, from plasterboard to painting to insulation to basic plumbing. Or go along to free hardware-store lessons. Newbies can gain confidence by joining a regional creative hub, makerspace, or Menzshed. If you’re not handy, sites like Builderscrack may help.
If you have space, grow your own veges, fruits and herbs – use pots and trays for herbs if you have only a windowsill. Preserve surpluses using cookbooks or the plethora of recipes on the internet. Research online how to save your seeds for next season.

Clean naturally and cheaply. Pretty much any cleaning job can be achieved with the help of white vinegar, bicarbonate of soda, lemon juice, plant-based soap and essential oils, say the experts. Look up solutions online or in regional books such as Homemade by Eleanor Ozich, Save Make Do by Lyn Webster and The Natural Home by Wendyl Nissen. Makeup wearers will be aware of dupes – products equivalent in quality but vastly cheaper – and the many sites devoted to saving your facepaint cash. l

The information included here does not constitute financial advice, merely suggestions that might help you to a savings goal.

Saving tips

Financial columnist and author Mary Holm shares her top saving tips:

1. Challenge yourself. Who would care if you haven’t got the latest clothes, furniture or car? Your friends might actually like you better if you’re not seen to be competing with them. It might also reduce the pressure on them to keep up with fashions.

2. Really think about whether purchases make you happier, after the initial rush. After you buy something, make a note in your diary a month or two later: «Does that new shirt make me happier?» With a big purchase, such as a car, check your feelings six months later.

3. If you tend to buy expensive wine or beer, organise a blind taste test with your friends, with only one person knowing which drinks are which. You might well realise pricier drinks aren’t necessarily your favourites.

4. Read about FIRE (Financial Independence & Early Retirement), and consider a more modest target. Maybe you could compete with friends.

Saving in the home

Author and home cook Eleanor Ozich on saving in the home:

1. I love making my own natural and earth-friendly cleaning supplies, from simple, low-cost ingredients such as baking soda, vinegar and castile soap. Most don’t realise how easy it can be, plus you save quiebro a bit of money in the long run, so long as you have the basic ingredients on hand. Essential oils make a lovely addition, too, as they have fantastic anti-bacterial properties and will make your home smell incredible.

2. During the colder months, it’s a great idea to get your slow cooker out as much as possible, and have some easy slow-cooked recipes up your sleeve. We have ours running most days during winter, and I love that you can create a vegetable-packed meal to feed the family, using cheaper cuts of meat for a flavour-packed result. Plus, you’ll probably have left-overs for refrigerio the next day.

3. Be super-mindful each time you feel the desire to buy something new. Unless it’s an item that is absolutely necessary, I like to take at least a week or two to think about it first. More often than not, the need (or want) for a particular item wavers, or I forget about it altogether.