20 Easy Ways to Save LOTS on Household Bills

Under-insuring is not the solution, but many insurance policies overcharge when better deals can be found by shopping around for what you do. Our article in The Spinoff covers the basics of what you can look at eliminating.

For life insurance and income insurance, you may be paying too much. You’ll have more room to get a discount (and/or get a better policy) if you visit a trusted insurance broker rather than talk to your existing insurer directly. We’re not advocating cancelling insurance; instead, challenging what you pay and getting a better deal is the only way to avoid a ‘loyalty tax’ by not shopping around.

Top tip – during the process, make ALL the required disclosures so you can’t be accused of having a pre-existing condition. If you’re undergoing medical treatment, don’t switch insurance as claiming will be near-impossible.

​Estimated savings: Up to $1,000 a year if you have existing life, income protection, trauma and related cover and no underlying health conditions.

MoneyHub research proves both car insurance and home insurance have a big range when it comes to the cost of policies despite the benefits being the same or very similar. Trusted challenger brands like Cove and Trade Me (car insurance) and Initio (home) mean you can get better details by switching to a new provider. Our price comparison guides to car insurance and home insurance have more details.

Estimated savings: Up to $500 a year on car insurance if you have a good driving history, and up to $400 on home insurance existing life, income protection, trauma and related cover and no underlying health conditions.

Content insurance is costly if you don’t own much of value. The test is this - if you would struggle no longer having a laptop, TV, musical instrument, linen, cutlery, even clothing, and wouldn’t have the money to replace your possessions, then contents insurance is probably a good idea. However, if instead you’re paying for a policy and don’t own many items of significant value, you could consider cancelling the policy altogether. Best of all, if you’ve prepaid for 12 months, you’ll get the remaining months you don’t need refunded.

Know This: If you are concerned about being liable for accidentally damaging the home you rent and want insurance for that, things have changed considerably. Our guide to renters insurance has more details.

Estimated savings: If you cancel contents insurance you don’t need, you can save up to $750 a year.

If you pay $150 per year for a credit card and then 20%+ interest on balances, there are cheaper options available. A low-interest and low-fee credit card is a good starting point to save every month on outstanding balances - our guide lists all the cards currently on offer.

Estimated savings: $1,000 a year for anyone with a gold/platinum card carrying a balance of $3,000 to $5,000 month-to-month.

A $5,000 credit card balance at a 20% p.a. interest rate is incurring $1,000+ in interest costs which is completely unnecessary. Savvy savers find a balance transfer deal, switch the debt to a 0% (or very low-interest) deal and cut the existing card up. Over the length of the low-interest period, you make repayments to clear the debt and avoid using the card for new purchases. It’s the cheapest and most-effective way to save on interest costs and move towards becoming debt-free.

Estimated savings: $1,000 a year based on a $5,000 month-to-month balance.

Only two cards, the Wise Debit Card and Flight Centre Mastercard, eliminate the foreign currency fees all the banks love charging. If you shop online and pay with foreign currencies or travel overseas, your bank will charge you a fee for ‘translating’ the currency. The good news is there’s no need to pay it – the Wise debit card is free, gives you the best exchange rate and doesn’t charge any such fees. If you want a credit card, Flight Centre’s offering gives a number of benefits as well as 0% FX fees. Our guide to overseas credit card bank fees explains more.

Estimated savings: 2% to 3% on whatever you spend. If you’d normally spend around $5,000 a year on purchases made in non-NZD currencies, you’ll save at least $100 to $150. Better yet, with the Wise Debit Card and Flight Centre Mastercard, you’ll get the best currency exchange rate and save even more.

Overdraft interest rates and fees are huge, and being in overdraft for an average of $2,000 a year can cost up to $500 in interest and fees and charges. Our guide to bank overdrafts shows that charges differ massively; some charge 10%, others as high as 23%.  The good news is that joining a new bank offering a low-interest overdraft is easy and painless and will certainly help you save money right away.

Our guide to cutting overdraft costs compares the best (and worst) bank deals available right now.

Estimated savings: $200 to $300 per year. This is based on your overdraft interest rate falling from around 20% to 10% and an average overdrawn balance of $2,000 to $3,000. If your overdraft is often more, your savings will be higher.

The Official Cash Rate has never been lower; if your mortgage term is about to expire (or not too far away), start looking for a better deal. The lower interest rate means your mortgage will be significantly cheaper and help with your finances. The cheaper the deal, the better things will be. Our home loans guide lists the best mortgage rates available right now.

Estimated savings: A 2% lower interest rate (i.e. 4.99% to 2.99%) will save $10,000 per year on a $500,000 mortgage balance.

In this new economy, cash is king, and we never know what’s around the corner. Paying for a hair appointment at $50 a week for six weeks, or $75 a week for four weeks for an impulse shopping trip, feels a bit 'yesterday'. These apps rely on continuous consumer spending and add another complication to keeping your money under control. If you really want it, saving up for it and paying for it in cash is fast becoming the new normal.

Estimated savings: Anything from $100 to up to $5,000 a year (if you’re a regular user and stop purchasing on non-essentials).

Consumer’s PowerSwitch is a free to use tool which takes a few minutes to reveal cheaper electricity deals. All you need to do is answer a few questions about your home, view and compare prices and choose the best plan for your home. With many electricity retailers offering joining discounts and competitive tariffs, shopping around and switching is likely to save you money month after month.

Estimated savings: Up to $1,000 a year if you’re a moderate to heavy electricity use.

If you have children, there are lots of free things you and your family can do together. Our guide to 100+ free activities in Auckland has the most comprehensive list, but you can also find relevant options in our school holiday guide for Wellington and Christchurch. Outside activities are, arguably, more healthy and memorable – New Zealand’s nature and scenery are free, so it’s a win-win for everyone.

Estimated savings: Around $1,000 a year (if you’d otherwise spend $20+ a week).

Despite the cost of oil being low, prices at the pump are still around $2 a litre, which makes using a car expensive. Our extensive list of 20 Tips to Cut Your Driving Costs covers everything from avoiding premium unleaded for standard cars, saving on fuel your petrol bills by changing your driving, bargaining down the price of tyres and repairs and other helpful easy-to-action tips.

Estimated savings: Up to $1,000 a year​.

If you’re struggling with the costs of driving, selling your car altogether is worth considering. Or, if your family has two cars, would you be OK with one? When you sell a car, you’ll not only get a sum of money, but you’ll save a lot of ongoing costs. There will be no more WOF, repairs costs, insurance and petrol station bills. If you’re a young family and one parent is commuting by public transport anyway, it’s worth looking into. Retired couples may also benefit from single car ownership.

​Trade Me Motors is a great starting point to find out the value of your car, and see if it makes financial sense to sell up.

​Estimated savings: $1,000 a year in road costs, $1,000+ a year in finance costs (if applicable) and $500+ a year in insurance costs.​

When New Zealand closed its borders in March 2020, ex AirBnB homes became rental properties overnight in areas all over the country. Because of the increased selection available, it's perfectly reasonable to negotiate on rent given the market conditions. This is somewhat unfamiliar territory for many long-time New Zealand renters, but it's worth having the conversation with the property manager or landlord. If you've been a reliable tenant and want to stay on, you're in an even stronger position.

​Estimated savings: It varies, but even $30/week adds up to $1,500 a year. 

This simple tip can add up to a lot of savings over a year. If the average lunch costs around $10, making a sandwich or packing something even more exciting can easily save you over $2,000 a year. 

MoneyHub founder Christopher says:
"When I was about to leave my investment bank career, I knew every lunch I took to work was financing my future. My workmates would easily spend $40 to $50 a day on lunch, but in the last few months, I sat it out and chowed down on a tasty homemade sandwich. I estimate I probably saved about $3,000 and felt better as a result, and had more time to work on my business plans during the lunch break." 

Estimated Savings: $1,000 to $2,500 a year (depending on what you spend making your lunch).​

When 2020 hit, many people lost their income overnight and had no money in the bank to cushion them without government aid. To help prevent financial stress and sleepless nights, make the decision to save up for purchases and pay for them in cash. This may be an unfamiliar approach, but it's guaranteed to reduce expenses and debt in the long-term. If you're not prepared to save for it, you probably don't want it as much as you think.

Top Tip: To help reduce the risk of spending unnecessarily, try leaving your EFTPOS or credit cards at home when you go out. Instead, carry cash - you won't be able to make impulse buys if you know the money has to last. 

Estimated Savings: At least $1,000 a year, but likely to be considerably more. Impulse purchasing is a major cost, so eliminating it will boost your savings and help you create a rainy day fund.