‘Touch and go’ payments may be increasing, but for many small purchases most of us still rely on good old cash. And because it’s easier to hand over a note for each purchase than to scramble in our pockets or purses for the correct change, by the end of the week we often end up with a hefty pile of low value coins. The perceived value of these coins is so low that, according to one survey, 93% of respondents admitted to throwing away five cent pieces, with 29% even ditching ten cent pieces.

Okay, so tossing away a dollar’s worth of small change each week won’t put much of a dent in your future wealth, but at least consider dropping those coins into a donation box. Combined with thousands of other donations your spare change can make a real difference to people in need.

There are, however, other areas where we effectively throw away money, and in amounts that can truly add up:

• Food: on average Australians throw away around one third of the food we buy.
• Gas and electricity: shopping around for a better deal on your gas and electricity bills could save you hundreds of dollars a year.
• Gift cards: often end up at the back of a drawer until they expire.
• Impulse buying: for clothes you won’t wear and things you don’t use.
• Lunches: a takeaway lunch costs much more than one you make yourself.

In most of these cases the solutions are pretty obvious:

• Only buy the food you will use. A few loose carrots and apples might be a better buy than the kilo bags that start to rot in the crisper. If you regularly have a surplus of some foods find recipes that use them. Soups and casseroles are a great way to use up lots of ingredients.
• Compare what other gas and electricity retailers are offering.
• Have a good look at your credit card statement - were all your purchases necessary? Be honest!
• Place your gift cards in front of your credit cards to remind you to use them instead.
• Make your own lunch. Many people can easily save $10 or $15 dollars per day with very little effort.

Once any impulse buying habits are under control, they could be the supercharger for your savings. Check out our budget planner tool to see where you can start making savings today.

Will implementing these changes make a real difference? Let’s see.

Imagine that you adopt some of these suggestions and as a result save an average of $60 per week via salary sacrifice. Stashed away in your super account that provides an average return of 7% pa and you could be looking at having an extra $86,000 in 20 years’ time*.

Now that’s a thought worth holding on to.

Step It Up with next-level super advice

Want some more budgeting help? An Adviser from the TelstraSuper Financial Planning team can help you make the most of the money you don’t throw away and get your budget on track. Call 1300 033 166 or fill out this form to get in contact with an Adviser from TelstraSuper Financial Planning.

• Example was done in the Retirement income projector  based on being invested in the Growth investment option
• An investment return is net of fees, taxes and other costs
• Balanced is projected in today’s dollars.

Past performance is not a reliable indicator of future performance.

This presentation contains factual information and general advice only. It has been prepared without taking into account your objectives, financial situation and needs. You should consider whether it is appropriate having regard to your personal circumstances before making any financial decisions. If you are considering acquiring a financial product you should obtain the relevant product disclosure statement before making any decision.