Top 5 ways to save money in the digital age

Estimated reading time
 7 min

Learn all about

• Australia becoming a cashless society
• The safety of digital payments
• 5 effective tips to save money

In today’s day and age, the act of counting out your change for a coffee is (almost) gone.

Card transactions have fast become the payment of choice, and it’s not uncommon to see phone tapping and watch waving at your local café, supermarket or even dentist.

And be prepared to pick your jaw up off the floor when someone pays for their coffee with their coffee cup. This one’s real – trust us.

However, some shoppers still swear by cold, hard cash, saying it’s easier to manage and keep track. Many budgeting philosophers also believe in its power to keep your spending in line. But as we’re slowly inching towards a cashless society, it’s likely the swipers and tappers will win out.

Is Australia going cashless?

Like much of the world, we’re moving toward a (mostly) cashless society. According to the Reserve Bank of Australia, 72% of Australians were classified as ‘low cash users’ in 2022. And while there aren’t any immediate plans to completely scrap the physical currency, its use is becoming less common.

  Brain hack

When it comes to spending, it’s become dangerously easy to pay for something (no matter the price) if we don’t use physical money. This is called the cashless effect and works because the money we’re using is essentially out of sight and out of mind. Another reason why this works is because the value of cash seems greater than a plastic debit card, even though they’re the same (thanks mental accounting!). To avoid this way of thinking, you don’t need to hoard all the cash in the world – you just need to be smart about your spending. Create a budget, set spending limits, or do both to keep your spending in check when you go shopping.

Are digital payments safe?

While the nature of the digital world comes with some risk of fraud, there are lots of safeguards in place (and additional measures you can take) to ensure your online activity is as secure as can be. Protections like multi-factor authentication allow you to shop digital, safely and securely. No matter where you bank, you can rest assured that you’re being protected from fraudsters who want to spend your hard-earned money.

How to avoid a scam

When it comes to your digital life – whether it's websites, purchases, emails, or social media – if it seems too good to be true, it usually is. If you’re unsure about something, take the time to research or call an official number from their website to verify that offers or messages are legitimate before clicking or acting.

By getting into the habit of regularly checking your spending in your bank account, you can spot any inconsistencies that might signal a scammer has access to your hard-earned dough. And the earlier you can spot a scam, the safer you’ll be.

5 simple cash hacks to help you save in the digital age

So how do you retain those clever cash habits, even if you're a card-only convert living in a digital world? Here are our top five lessons that cash taught us (cleverly updated for the cashless world):

1. The $5 savings trick

Cash aficionados have a whole lot of tricks and money-saving ideas up their sleeves, one of which is to save every $5 note they come across. It’s a small enough investment that you don’t notice it’s gone, but over time all those fivers amount to a thick wad of cash. In a cashless world, you can round up your online spending and put the spare change in your savings account, or you can match every purchase below $5 with a quick deposit into your digital piggy bank.

  Money-saving tip:

Deposit $5 (or whatever amount you like) into your savings every time you go on an online shopping spree.

2. Set a spending allowance

The limit does, in fact, exist. But it’s easier to stick to a spending goal when your budget is just the cash you have in hand. Once you run out of physical dollars, that’s the end of the splurge. So, if you feel prone to overspending or losing track of your goals in a cashless world, it might be useful to use a dedicated tracking app or have a weekly date with a spreadsheet. Most banks have a spend-tracking feature built into their app that can help you save money – such as ANZ Spendi in the ANZ App.

  Money-saving tip:

Set a spending limit and track your spending with an app, spreadsheet or a note on your phone.

3. The cash envelope system

Some cashed-up people use physical envelopes for each spending category to avoid overspending in one area. You can do this, sans the paperwork, by creating separate accounts and naming them in the ANZ app – like ‘household expenses’ or ‘entertainment’. The virtual envelopes or buckets keep track of your money, and you’ll feel the freedom to spend what you like within each limit.

  Money-saving tip:

Make a budget and bucket your money with the 50/30/20 budget calculator.

4. Save your leftovers

Spare cash in your wallet at the end of the month? Often, that would have gone into a piggy bank. If you’re keeping a solid budget and are on top of your spending habits, you can do the same even if you’ve gone digital. Try seeing your leftover monthly budget as small change to store in a savings account or to pay off your debt. Call your savings account ‘piggy’ if you must.

  Money-saving tip:

Transfer any leftover money from your monthly budget into your savings.

5. Keep track

One of the benefits of cashless banking is that you don’t have to count your money any time you want to know how much you have. There’s a bank balance at the click of a button. In theory, this access to immediate figures should help you keep better track of how much is going out and coming in. No piles of dollars needed. This is why we've created ANZ Spendi in the ANZ App. Set a daily budget on an account, then ANZ Spendi will show your spending at a glance.

  Money-saving tip:

Use your bank’s app to set a budget and stay on top of your daily spending.