Smart Ways You Can Save Money This Financial Year

Many successful entrepreneurs will use tax time to undergo a financial health check. It’s the perfect time to review business expenses and ensure you’re getting the most value out of every dollar. Tracking where money is going, what debts needs to be paid off and looking for new ways to save money for the next financial year are all vital. The end of the financial year has just been and planning starts now.

Financial planning is one of those things that’s easy to avoid. It can be a hair-pulling time managing expenses and working on tax returns. Most people usually find facing their financial checks intimidating. But getting on top of it early and finding smart ways to manage your money is one of the best ways to drive business success. When it comes down to the crunch, we’re all looking for ways to eliminate expenses and boost our finances. Here are a few ways you can be saving money in preparation for the next financial year:

1. Track Your Expenses

To gain a better understanding of where your money is going, it’s important to track expenses. It’s near impossible to make a financial plan that makes sense when you don’t know what you’re spending. Track expenses through an online spreadsheet, smartphone app or a financial diary. Start by making a list of all your outlays in order of the amount spent, with your biggest spend at the top. Review each expense and determine ways you can cut down these costs. Another quick way to do this is to review the last 3 months of your bank account and credit card statements. Export these to a spreadsheet and categorise them. This will give you a concise breakdown of where you are spending money.

In most cases, the highest spend will likely be on your home loan. Talk to a broker about how you could save money for this expense. If you’re able to save 0.5%, for example, this could save you $500 a year per $100,000 loaned. If you have a home loan of $350,000, this would amount to $1,750 savings.

2. Salary Package Your Car to Reduce Tax

Salary packaging your car makes your money go further by reducing your tax liability. More business owners and employees are taking advantage of this opportunity because of the tremendous benefits for both parties. Whilst the ‘financing option’ might scare people off, salary packing is one of the smartest ways to finance and purchase a new car.

A novated lease, which salary packaging can be referred too, sets businesses and employees up with a reliable car, suitable for the job at hand. It eliminates the need to save up for a deposit on the vehicle and helps to cut down on maintenance costs, which we can all agree add up with cars. By “sacrificing” part of your salary each month to finance the car, you end up reducing your taxable income. With this comes significant savings. Generally, you can save $3,000 per year in tax per vehicle that you package. By making a few simple tweaks, it’s possible to get an extra months’ worth of salary.

3. Take Advantage of a Fleet Company

Whether you’re looking to take out a salary packaging arrangement for your car or not, reaping the rewards of a fleet company is a smart decision. Fleet companies can manage your personal/work vehicle which can save an excess of $500 a year. Good fleet management will be transparent about the costs involved well in advance. You will know the cost of maintaining the car and therefore can budget for it accordingly. Trusting a fleet company to manage your car will also eliminate petrol-guzzling vehicles out of the equation. You will be in a better position to get a car that suits your needs better, with trustworthy standards.

4. Address Your Debt

Debt – the elephant in the room we always try to avoid in hope that it’ll magically go away. Unfortunately, it doesn’t. And the longer we leave it sitting there begging to be dealt with, the more money we’re wasting.  For many people, debt is inevitable, but it doesn’t mean it can’t be managed in a way that eliminates additional costs and headaches. Address the issue by paying off your high-interest debt first. This one will be what’s chewing through your sanity and funds the most. Generally, credit card interest is 20%, but a home loan will be single digits. A $5,000 debt is going to cost you $1,000 per year on a credit card. On a mortgage, it will cost you $250 (assuming you have a 5% mortgage).

The best way to avoid mortgage debts is to take out an offset account. Offsetting is a strategy that saves mortgage holders a lot of money throughout the life of a loan, without the need to make any extra repayments. Offset accounts are designed to allow access to funds, but reduce the amount deposited against the total amount of the mortgage.  By paying off the card debt with Offset money, you can save an additional $750, based on the above example.

5. Be Smart About How You Use Your Tax Money

With tax time just around the corner, most people might be planning a quick getaway or shopping spree to celebrate. Others will use it to buy a few essential items or stock up that dull looking savings account. If you’re smart about the way you use your tax money, it can end up saving you a tonne for next financial year. Consider purchasing work related equipment you can deduct next year. Think big ticket items like a new computer. Work related expenses that cost over $300 make for a better deduction on next year’s return.  Whilst it’s more fun to spend tax returns on holidays, using it to pay off credit card debts or loans is more cost-effective. Put tax money every now and then into a mortgage offset account or to top off your super and see what difference it can make.

Implementing a handful of these money-saving strategies will offer big improvements in cash flow. You could save $1,750 on your mortgage, $3,000 by salary packaging your car, $500 on your vehicle by using a fleet manager and $750 by managing your credit card. That’s a whopping $6,000 you can effectively save, which is 1 ½ months’ net salary – or in other terms, you’ve just gained 6 weeks of pay. Winning, right? 


Excellent and simple guide for saving money. Tracking expenses is best thing we can do to our hard earned money. Everyone should make use of tech tools to effectively manage his/her expenses. Every app/website will offer unique solution which may or may not fit to everyone, so check out your specific needs and start using the best fit app. FinArt is one such app that helps in tracking expenses and bills automatically based on service SMS. It offers strong security and data privacy controls, which are very important in these times when 'data' is 'money.

I just wanted to add that for money management I use Geltbox Money - simple to use, quick and intuitive. automatic download from any website (banks,credit cards), high level of security (financial data is securely stored and encrypted only in your personal computer).Geltbox Money doesn't use any third party aggregation site. Moreover, Geltbox has the ability to work with any financial institution in the world.

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