Money & Banking

4 “obscure” ways to save money according to an Aussie finance guru

4 “obscure” ways to save money according to an Aussie finance guru

A 26-year-old entrepreneur by the name of Dominic Aarsen has been using some simple money hacks for years now and they’ve reportedly saved him $50,000.

Some of these steps are “easy” and he claims they will save the average Australian $15,000 a year.

1. Literally cut up your credit cards

Aarsen says this is the step that surprises most people, but it’s the most effective.

“Open your wallet and cut up every card except your key card. Every person I speak to sounds outraged (by the hack), but if people don’t have access to credit, they won't use it,” he said to news.com.au.

“If you’re not good with money, I guarantee switching from card to cash will save you a thousand dollars in the first two months.”

2. The “two-minute trick”

“It doesn’t matter what you buy — whether it’s food or if you’re shopping for clothes — hold it in your hand, set the timer on your phone and wait for two minutes, and you’ll find that more than half the time you don’t actually buy it,” he said.

“It’s a psychological trick that retrains your brain. Most of the time they’re not big purchases — usually under $10 — but lots of $10 adds up quickly.”

3. The “Coke bottle hack”

This hack involves putting every spare $2 coin you find into a 600ml drink bottle which will add up to $1,000 when full.

Aarsen said that collectively, Australians throw away or lose more than $350 million a year, with coins falling down the couch or accidentally thrown in the bin.

4. “Locking” your bank account over the weekend

Aarsen believes that you should “lock” your bank account during times you might be tempted to overspend, such as on weekends.

“Most people don’t know you can call your bank and lock your account, which means you can log into your app but you can’t transfer your money,” he explained.

“All it takes is 30 seconds and it’s not like the money disappears, you just can’t get to it.”

However, Aarsen is aware that his tactics are easy but extreme.

“If I asked you if you wanted to save $15,000 you would say yes, absolutely, but if I said, ‘Here’s one thing that will save you $500’, you might be less inclined to do it,” he said.

“But $500 here and there will actually make a massive difference, but unless it’s right in front of your face, a lot of people won’t do it.”