Money saved is money earned goes the adage.
And personal finance experts say that an effective way to save money amid Australia's cost of living crunch is shopping around for better deals on basic utilities.
Why it pays to shop around
Financial comparison website Canstar Blue studies Australian consumer spending behaviour to identify financial pain points, saving habits and the impact of cost-of-living pressures, among other things.
"Our research tends to find that the majority of consumers who switch say it was a good financial decision, and our data repeatedly show that even if you're paying an average price for a plan or policy, there’s potential to save tens or hundreds of dollars by moving to the cheapest comparable plan or policy, said Christine Seib, Canstar Blue's editor-in-chief.
Seib said service providers often incentivise signing up with cashback offers, gift cards or loyalty points.
But she advised consumers to "note whether there are conditions, such as a requirement to pay online or deposit a minimum sum per month, attached to an attractive price or rate because you may miss out if you don't meet the conditions".
How can you save on electricity and gas?
If you want to save on utility bills, energy retailer comparison tools can be a good place to start.
, an online comparison tool run by the Australian Energy Regulator, helps consumers in NSW, Queensland, South Australia, Tasmania and the ACT compare electricity and gas plans.
Residents of WA could visit the webpage of the state government's website. For those in the NT, the website can be a useful resource.
You can save by switching to a more affordable plan provided by a retailer within the distributor network that services your area.
The amount you can save will depend on not just the retailer, but also the distribution area in which you live. The cost of providing electricity and gas varies by geography, so prices vary across distribution zones.
The tables below show what some consumers serviced by different gas and electricity distributors could save if they moved to the lowest-cost energy retailer in their area, according to Canstar.
Residents of the ACT can expect to save $490 on electricity and $297 on gas by switching retailers.
If your area isn't covered in these tables, check out a comparison website to see if you could be getting a better deal on gas and electricity.
Comparisons for all states and territories can't be provided because some states and territories set regulated rates or have a single distributor, which in effect limits residents to a single option in either gas or electricity provision.
Western Australian residents have a choice between providers for gas but not electricity. Tasmania residents have a choice of providers for electricity but not gas. NT residents have a single provider for both gas and electricity.
How can you save on insurance?
Insurance premiums can be a considerable expense, especially for those who have taken out health, home and contents, and car insurance policies.
When it comes to switching insurers, experts say a good starting point could be a phone call to get quotes and compare them. You could call your current insurer to ask for a better deal, or a competitor to check for better pricing, benefits, or incentives if you took out a policy with them instead.
But insurance is a more complex area when compared to energy because insurance exclusions and excess can vary. Experts say it's important that consumers do their research, and that might involve comparing product disclosure statements, or calling insurers directly and asking questions.
Canstar found that those paying the average cost for a silver private health insurance policy for families, home and contents insurance, and comprehensive car insurance could save about $2,000 a year if they moved to the lowest-cost policies.
Insurance savings, plus those for electricity and gas, could mean some Australians paying average costs for these could save upwards of $2,000 a year, according to Canstar.
How to get a savings interest boost?
Canstar found that some customers who hold savings accounts with an average interest rate of 2.49 per cent could gain another $170 a year if they switched to a savings account with higher interest.
This could be achieved in a savings account where a customer is not required to meet certain conditions to have extra interest paid. But Canstar found even more interest could be paid on some accounts that do require this.
These are called bonus savers, and typically require customers to meet certain conditions such as a minimum monthly deposit in order for a higher rate of interest to be paid. If they are not met, a smaller base rate of interest is paid.
Customers can also receive introductory rates, which are the rates of interest you earn for the first few months of opening the account with a bank.
"To get the best out of your money with a savings account, savers have to shop around," Canstar finance expert Steve Mickenbecker said.
What's stopping people from shopping around?
Seib said people are often hesitant to shop around.
"There are two main perceptions that stop many consumers comparing financial services or utilities products as a way of managing costs: that 'they’re all the same price' and that comparing is difficult," she said
"It’s fair to say that comparing insurance does take some phoning around because individual insurers may consider your individual risk factors differently. Energy is usually easier because all companies provide what's called a reference price that lets you compare like for like."
"But broadly speaking, putting aside time to compare and switch if you find a better product does offer the potential to save and, in some sectors, isn’t hugely complex because there are many free comparison sites that will do much of the work for you."
Seib said even if you don’t immediately find a cheaper plan or policy or a higher interest rate, there are two benefits to comparing regularly.
"It keeps you engaged with parts of your finances that might be otherwise easy to set and forget. Once you’re focused on them, you might come up with other ways to save or earn."
"Plus, it acts as a reminder to contact your current provider to ask what additional value they can offer on your existing plan, policy or account."
"As a rule of thumb, if you can’t remember the last time you compared prices or rates on a policy or plan, it may be a good idea to do so."
"Treating it like an annual stocktake that you do at the same time every year could be a good way to get into the comparing habit. Or you could use every price increase or rate decrease on a product as a prompt to compare in that sector."
The information in this article is general in nature and is not intended as financial advice; you should consult with a licensed professional to make the decisions that are right for you.
