Australian households are boosting savings faster than they have in years. Here’s how to build on that momentum and save smarter.
Australian households are finally breathing a little easier and starting to seriously boost their savings. New data from the ABS shows the average household saved 5.2% of their income in the March 2025 quarter, up from 3.8% in December. It is the highest savings ratio since 2022 and a sign that people are putting more aside while cutting back on non-essential spending.
While this lift in savings is welcome, it comes during a period of economic uncertainty. GDP per capita fell 0.4% through the March quarter and if the next quarter shows another fall, Australia could be back in a per capita recession.
The good news is that small financial wins are starting to add up for many households. Variable-rate borrowers have benefited from the February rate cut and gross disposable income rose 2.4%, while household spending only lifted 1%. For many people, this means they are choosing to save, rather than being forced to spend less.
With that in mind, now is the perfect time to build better financial habits. Below are ten practical tips that can help you take advantage of this moment and set yourself up for long-term success.
1. Refinance your home loan to a better rate
Home loan repayments are often the biggest expense for households. If you have not reviewed your rate recently, you could be paying too much. Refinancing to a lower rate, consolidating debt, or restructuring your loan could free up hundreds each month.
Talk to us to check if your borrowing power has changed due to your recent savings or to explore how refinancing could help you save more.
2. Set up a separate savings account
Open an account that is not linked to your everyday spending and schedule regular transfers to build your savings without thinking about it.
3. Cancel unused subscriptions
Many people are still paying for streaming services, apps, or gym memberships they rarely use. Do a quick audit and cancel what you do not need.
4. Cook more at home
Plan your meals for the week, shop with a list, and avoid food waste. Cutting back on takeaway is one of the fastest ways to save.
5. Ask for better deals on bills
From energy to insurance, a quick phone call can often result in lower prices. Loyalty is rarely rewarded, so it pays to compare and negotiate.
6. Have a clear savings goal
Whether you are saving for a holiday, a house, or a rainy day, setting a target gives your savings purpose and keeps you on track.
7. Use rewards and cashback options
Make the most of everyday spending by using cards or apps that offer cashback or points. Just make sure you pay off your card in full each month.
8. Buy second-hand where possible
For items like furniture, tools, or kids’ clothing, check online marketplaces or local groups before buying new. You will often find quality at a fraction of the price.
9. Consolidate debts
If you are juggling multiple debts, consider rolling them into one with a lower rate. This can reduce the interest you pay and simplify your finances.
10. Be ready for future rate cuts
With another RBA cut widely expected in July, now is a smart time to act. Getting ahead of the next shift could help you lock in a better deal and save even more.
Building your savings doesn’t have to mean cutting out everything you enjoy. It’s about making smarter decisions with your money, and that starts with understanding your options.
Let’s discuss your loan and savings strategy. Whether you’ve recently built up some savings or want to reduce your monthly costs, we can help you review your home loan, check your borrowing power, and discuss ways to get ahead financially.
Contact us today to check if your borrowing power has improved or to talk about ways to reduce your costs through refinancing or debt consolidation.
