The arrival of the new financial year is the perfect time to review your financial health and potentially cut a raft of unnecessary costs.

Abigail Koch, from comparethemarket.com.au, has come up with a list of ways to save you more than $4200 over the next 12 months.

“The simplest things can save a huge amount of money over a year,” Ms Koch said.

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“We encourage Australians to compare all of their providers – from energy, insurance, telcos and credit card companies – at least every 12 months to select the most cost-effective and appropriate plans to meet your individual needs.”

Energy to burn? Save $1315 on energy usage alone. 

1. Second fridge insanity 

Do you really need that second fridge in the garage keeping a couple of bottles of beer cool? Sell the fridge and save about $170 per year in energy bills.

Potential annual saving: $170 plus about $100 for the fridge itself.

2. Turn down the heat

Turning down the heat can save you money. Photo: Shutterstock

Reduce the temperature on your reverse-cycle air conditioner by one degree and cut your electricity bill by about 10 per cent.

You are likely to spend about $294 during the winter months to heat two large rooms to 20 degrees (for four hours a day, three months of the year.)

Drop this to 19 degrees to cut costs.

Potential annual saving: $29.

3. Make the most of energy discounts

Energy companies are offering as much as 35 per cent off of their energy usage costs in an attempt to win more business.

Online comparison services can help you find the cheapest energy plan in your area. Even if you have to pay early exit fees, it could be worth switching to save hundreds of dollars over the year.

Potential annual saving: $672, based on a 35 per cent saving on an annual electricity bill for a householder in Melbourne.

4. Turn it off at the switch

Laptops, stereos, speakers, TVs and set-top boxes are the biggest contributors to your ‘stand-by power bill’.

Turn off your stereo, games console, TV, printer, washing machine, pay TV or set-top box at the wall to achieve a saving.

Potential annual saving: $78.

5. Turn your back on the dryer

Ditch your dryer and use the clothes line to dry your clothes.

Potential annual saving: $266 on your electricity bill.

Exercise caution and save $1540.

6. Trial offers

Circulate between gyms, yoga studios and classes by using their introductory offers.

Many yoga studios have $50 for one month of unlimited classes, compared to membership of around $80 per month. Try a few studios to find the one you like best.

Ditch the gym fees and exercise outdoors. Photo: Shutterstock

Potential annual saving: $90 for three months of yoga trials.

7. Start a walking or running group

Exercise for free and receive motivation from your group.

Potential annual saving: $1000 (you don’t have to spend on a gym membership).

8. Continuing a gym membership despite never going

It seemed a good idea to waive that joining fee in exchange for an 18-month membership – but with six months to go, you’re not using the gym.

The solution is to sell your contract to a friend who can avoid joining fees and take up the remaining payments.

Potential annual saving: $450 (based on fees of $75 per month).

Card tricks to save $318 

9. Smart Traveller

When abroad always pay in the local currency when you’re offered the choice of Australian dollars or Euros, for example.

If you choose Australian dollars – which most of us automatically do – then the little-known Dynamic Currency Conversion fee will kick in costing you 5.5 per cent on top of your purchase.

Potential annual saving: $110 based on $2000 on purchases during two overseas holidays.

10. Don’t use your card to pay your cab fare

PayPass is an easy way to pay that Saturday night cab fare, but a 10 per cent surcharge applies. Take cash for your taxi trip home.

Some stores also have a tap-and-go charge – Aldi charges 0.5 per cent for this form of payment.

Potential annual saving: $208 (Based on two $20 cab fares per week).

Daily life hacks to save $1032

11. Shop online but collect yourself

Date night doesn’t always have to be costly. Photo: Shutterstock

Do you grocery shop online but collect from the store checkout free of charge and save up to $13 a pop.

If you have to opt for delivery, try choosing an off-peak delivery time for a cheaper fee.

Potential annual saving: $676 (based on a $13 weekly delivery fee).

12. Make the most of health insurance discounts

Keep your eyes peeled for health insurance funds that offer a discount if you pay by direct debit as some offer up to four per cent off your annual premiums.

If you’re on a family policy paying an average $3500 per year, this saving can make a big difference.

Potential annual saving: $140.

13. Paying full price on date night

Sure, it’s fun to do something special with your partner every week, however it’s easy to spend $100 on a night out.

If you love midweek date nights, try sourcing a phone or energy supplier that offers rewards such as discounted cinema tickets.

Telstra offers $11 movie tickets to its customers plus 10 friends.

Potential annual saving: $216 (based on $9 savings on two cinema tickets, every four weeks).