Imagine always having spare income to add to your investment so that your money is constantly working harder for you? According to Simple Savings’ Jackie Gower, it’s not a pipe dream with these common sense tips for cutting expenses.

Curtailing your spending is no easy feat, especially if you have a family. But there are some simple ways to cut back that may mean a bigger investment portfolio.

Food 

Usually the biggest bill in any household, but luckily, it’s one of the easiest to diminish. As the TV chefs always say, cooking at home is the key. “We know of families who’ve reduced their weekly food bill by as much as 50% as a result of menu planning,” Jackie reveals. Also, look beyond the supermarket. “Taking the time to shop around your local butcher and greengrocer can result in valuable savings.

Utilities 

The answer to saving here, Jackie says, is to review and compare. Do your research and check out deals from different providers. This is not the most exciting task, but Jackie estimates one to two hours on the phone or online could save you several hundred dollars a year.

Petrol 

Potentially another large household expense. “The best way to cut-back on petrol is not to use it. Walk, ride or use public transport whenever possible. Car-pooling is also a great cost-saver. Make a list of your errands over a fortnight and try to get them done in the same area at once.

Entertainment 

Everyone automatically reaches for their wallet here, but fun can be reasonably priced, or even free. Check out exhibitions, markets, walks and local fairs. Host a movie or games night, or pack a picnic and head to the beach or a national park. And, instead of buying new toys, join the local library or toy bank if available. The kids can play with exciting ‘new’ toys as often as they like – for free,” she adds.

More thrifty hints… 

If you’re terrible with money, downloading an app to track spending could be your salvation. “One tried-and-true app is Track My Spend” our expert says.

Finally, if you really struggle with self-control, many banks offer accounts with online-only access, or require you to go in to make a withdrawal. This can prevent you going on mad sprees with your EFTPOS or credit card.

The important thing is to take the first step, as Jackie affirms, “Aim as big or small as you like. Any saving is a good saving.”

But the flipside of this chemistry can prove a real financial problem. Say you’ve come home from work after a long and unrewarding day, feeling sluggish and depressed. In this dopamine- deprived state, many people reach for their credit card for some online retail therapy.

Consumer behaviour experts call it a ‘spending trigger’, and only a new set of Callaway golf clubs or a pair of Jimmy Choo pumps will put things right. Ordinarily, a trip to the nearest shopping centre isn’t realistic at 10pm – a fact that online retailers know only too well as they now meet the demand of this new shopping ‘happy hour’.

Online spending numbers are staggering. The NAB Online Retail Sales Index showed that for the year to July 2013, Australians spent around AUD 14 billion on online retail. This level is equivalent to 6.3 per cent of spending with traditional bricks and mortar retailers across the same sectors.

Sales are dominated by ‘pureplay’ retailers (online only retailers), who account for 70 per cent of total sales, and dominate sectors including daily deals and media (movies, books and music). ‘Bricks and clicks’ retailers (traditional retailers with an online presence) still lead the way in groceries/liquor, homewares/ appliances and games/toys.

To combat the temptation to overspend online, put a barrier between you and whatever you tend to overbuy. For instance, try noting things you want but wait until later to see if you really need them. If you log on for a Web-only sample sale and find your favourite item is already sold out, tell yourself, “try again tomorrow,” and log-off.

It’s also important to not keep your credit card on file by opting to enter your payment information each time. Delete cookies in your browser’s preferences from time to time to deny retailers information to coax you into purchasing their ‘recommendations’. In short, don’t let dopamine turn you into an online shopping dope!

If overspending online is becoming a serious issue, your financial adviser can help you with budgeting strategies to get your finances back on track.