Five simple steps to saving cash (while still having a life)

With cost-of-living pressures, everyone could do with some extra cash right now. 

One straightforward option is to stop cash leaving your account in the first place.

In other words, check you're not frittering away your hard-earned money by paying more than needed on your bills. And by bills, I mean everything you spend regularly.

Your mortgage, insurance and electricity accounts are all fair game, as are streaming subscriptions.

This is not about beating yourself up. It's also not about depriving yourself of all sources of joy.

Research-backed models show a little pleasure is essential for financial wellbeing. You can still spend money on fun stuff; you just want to make sure your spending is effective.

Whether you tackle this all at once or schedule 15 minutes a week for the next few months in your calendar, you can follow five simple steps to help reduce money wasted on bills.

Step 1: Triage

You want the biggest bang for your buck, right? So you need to know where your money's going.

Collate your spending records for the past 12 months and rank what you've spent in some kind of order to decide what you'd like to focus on first.

You may find your online banking system can do the analysis for you. Or perhaps you might ask AI to do it, noting it's best not to give them access to your bank account directly.

You could also use an app, though please check you don't breach your banking terms if you choose that option.

I prefer the old-school approach: downloading a spreadsheet or "export" from your bank (via internet banking) and sorting what you're spending by searching via the "description" field (i.e. biller).

The goal is to look for:

• Your biggest bills. Usually they'll be essentials like housing (rent, mortgage), debt repayments, electricity, groceries and insurance.
• Recurring items. Often weekly, monthly or quarterly subscriptions that mount up, e.g. gym memberships or streaming services.

Step 2: Decide

Make a conscious choice. Is this still the best use of your money?

For most essentials, the answer will be an automatic "yes". But for discretionary items or duplicates, you might realise you haven't used it enough in the past year to justify continuing. In which case, your next move is to cancel that spend.

If you're convinced it's worth keeping, next you can …

Step 3: Shop around

Shopping around on rent is probably a waste of time in today's housing market, but it makes sense to check almost everything else, even if it's just reassurance you're getting a good price.

If you're sticking with the same provider year after year without asking for a better deal, you're probably paying a loyalty tax.

For example, some companies offer deals for new customers and don't routinely share them with existing ones. Sneaky, right? Check what your current provider has on their website, especially their "introductory" offers.

If there's nothing better available with your current provider, could you get a better package or price elsewhere? Start looking around, though please be cautious using comparison sites.

Some are pay-to-play, so you don't see all the best options available, just the ones that paid to be listed. 

Also (and I speak from experience here), you risk signing up for marketing hell when you put in your contact details to get the "best" deals. Consider using a burner email.

Where possible, opt for independent sites like:

• The Commonwealth Ombudsman's private health insurance information for comparisons
• The Australian Government's energy comparison site or the Victorian Government's version for your power bills

And when it comes to streaming and media services particularly, don't forget the free options. ABC iView, SBS on Demand, Kanopy and Press Reader via your local library can be excellent alternatives.

Step 4: Ask for a better deal

Your provider spent money to win your business. They want to keep it. If you're happy with the terms and quality of your current provider, you can ask them to give you the deal they're offering new customers, or to match the competitor you've found.

If you have a mortgage, asking for an interest rate discount is an annual must. Because the interest reduction applies for the life of the loan. It's the quickest way to 'make' $20,000 without much heavy lifting.

Of course, even if you ask (nicely) they might still say no. If they won't come to the party, it's time to consider…

Step 5: Switching

If you've found a better deal and you're happy with the terms and conditions, it might be time to jump across to a new provider. Check you don't have any contractual obligations to stay and whether you'll be charged any fees or penalties to move.

If all looks well, vote with your feet and switch to someone who better appreciates you.

If you're not sure where to start or you're worried about your bills, please get (free) help from one of Australia's unsung heroes: a financial counsellor.

And remember...

It might feel uncomfortable at first, but asking for better deals is a useful life skill. It helps make the most of the money you have, and you can use it to negotiate on big-ticket items like buying a car or your salary.

The golden rule is: "Don't ask, don't get". So, please, ask.

Lacey Filipich is a financial educator and the author of Money School.

This article contains general information only. You should consider obtaining independent professional advice in relation to your particular circumstances.