"The first step is the most important step," he told news.com.au. "Have a look at your money, have a look at your finances and understand where it goes.
"Then you can start to understand where are the problems in your lifestyle and where you can make a change."
Then start to make changes from the top down: refinance your home loan or shop around for a better rate and dissect each and every utility bill, comparing them to others on the market.
"Guaranteed you can get savings in this area, it's highly unlikely that we've all got the best deal," Gumbley said.
"Start with the big items and work your way down the list, and maybe just tackle one a month rather than trying to do it all in January."
Not all of us have economics degrees, so to understand the best way to negiotate compound interest and how to maximise tax reductions, improve your financial literacy through easily digestible channels such as podcasts, YouTube videos and books such as Scott Pape's Barefoot Investor.
Once you know where your money goes and how best to save it, you can then start to get creative with swapping out unnecessary items.
Gumbley is the chief executive and founder of smartphone application Frollo, which tracks spending and shares savings tips with other users.
Substituting meats for a vegetarian option one night a week or making your own body scrub are just a couple of ways to save hundreds of dollars.
According to Gumbley, someone on an A$80,000 ($84,442) salary can save A$18,380 from just 14 spending swaps. All figures are approximate averages and based on a one-person Australian household.
Homemade lunches
Cost before: A$12/lunch x 261 work days = A$3132
Cost after: A$5/lunch x 261 work days = A$1305
Total annual savings: A$1827
Meatless Mondays
Cost before: A$15/1lb meat x 52 Mondays = A$780
Cost after: A$3/1lb tofu x 52 workdays = A$156
Total annual savings: A$624
One fewer bottle of wine per month
Cost before: A$20/bottle x 12 months = A$240
Cost after: 0 bottles = $0
Total annual savings: A$240
Weekly potlucks with mates vs restaurant dinners
Cost before: A$50/restaurant dinner x 52 weeks = A$2600
Cost after: A$20/homemade dinner x 52 weeks = A$1040
Total annual savings: A$1560
First-year special offers: Credit card
Cost before: A$100/year = A$100
Cost after: $0/year = $0
Total annual savings: A$100
Library card vs buying books audiobooks
Cost before: A$20/book/month x 12 months = A$240
Cost after: $0/unlimited books = $0
Total annual savings: A$240
Public Transit vs Car ownership (payments, petrol, insurance, maintenance)
Cost before: A$200/week x 52 weeks = A$10,400
Cost after: A$60/week x 52 = A$3120
Total annual savings: A$7,280
Swap Sell vs Purchasing new clothes
Cost before: A$100/month = A$1,200
Cost after: $0/year = $0
Total annual savings: A$1,200
Make-your-own body scrub vs Purchasing name-brand bdy scrub
Cost before: A$20/single-use scrub x 12 months = A$240
Cost after: A$40/1 tub coconut oil 1 bag of brown sugar = A$40
Total annual savings: A$200
Think before your buy groceries and reduce waste
Cost before: A$900/year = A$900
Cost after: A$450/year = A$450
Total annual savings: A$450
Cheap Monday movies vs Full-Price Saturday movies
Cost before: A$20/film x 15 films/year = A$300
Cost after: A$10/film x 15 films/year = A$150
Total annual savings: A$150
Tap water vs Bottled water
Cost before: A$2.75/L x 365L/year = A$1004
Cost after: $0/unlimited litres = $0
Total annual savings: A$1004
Home-brewed coffee vs Coffee shop
Cost before: A$3.50/coffee/day x 365 = A$1277
Cost after: A$0.75/coffee/day x 365 = A$274
Total annual savings: A$1003
Refinance your home to a better rate
Cost before: A$500,000 mortgage at 4 per cent interest = A$20,000
Cost after: A$500,000 mortgage at 3.5 per cent = A$17,500
Total annual savings: A$2500
