That's the staggering amount of food waste we generate each year - three million tonnes of it - and experts say that if you want to save money, the kitchen is a good place to start.

More conscientious shopping, cooking and storage of food could save Australian families $6 billion a year.

In 2005, the Australian Institute looked at what we throw out: $2.9 billion worth of fresh fruit and vegetables, $876 million in leftovers and $630 million worth of uneaten takeaway food topped the list.

According to the latest figures from the Bureau of Statistics, food costs are also up by four per cent across the board, so food waste makes no sense in the present climate.

The Foodwise website has a lot of handy hints on what to do with food you may normally throw out, leftovers, planning meals better and shopping on a budget.

While I'm not talking about washing mouldy meat or ignoring the smell of an expired carton of milk, there's plenty of ways you can make a little go a long way in the kitchen.

It all starts with planning. Shopping with a grocery list means you are likely to buy only what you need and avoid impulse purchases.

It also means you'll buy the essentials then and there and avoid getting home to realise you've forgotten the bread - hence trekking back to the supermarket where you are more likely to buy more than just the loaf required.

And while the popularity of people "going green'' is on the rise it's worthwhile considering what you can grow and produce at home yourself.

Every square centimetre of soil in your backyard can be made productive - use it for a vegetable patch, growing a fruit tree, or make it home to a few chooks.

And it goes without saying that you can then cross eggs off your shopping list.

The decomposition of organic matter such as food waste in landfill is a major contributor to the generation of the highly damaging greenhouse gas methane.

So while we're talking about saving money, you may also be going a long way to saving the environment by starting your own compost bin or by feeding the chooks.

*Sara Morrison is the business development manager at South West Credit.