50
ways to save money !!!
1.
Change your attitude to your mortgage
The most expensive item you are ever likely to buy is your
home. If you're not in the privileged position to pay cash,
make sure the loan you use to finance it is the best available.
For example, if you are paying your lender's full standard
variable rate (SVR) you are probably paying hundreds of
pounds a year more than you need to. There are thousands
of deals to choose from and while it is vital to check the
small print for hidden catches, this is a relatively easy
way to save a lot of money. Remember: loyalty to your bank
benefits your bank, not you. Even better, if you can afford
to make overpayments on your mortgage, you'll clear your
debt several years early and make massive savings. For example,
if you borrow £100,000 at 6% over 25 years, you'll
pay it back at £643 a month. The total charge for
credit will be £93,000. But if you can overpay by
£100 a month you'll clear the loan in less than 19
years, giving you 6 years of mortgage-free living and saving
a staggering £25,000 in interest.
Saving: £1,000s
2.
Clear your credit card debt
One of the golden rules of financial planning is to clear
your most expensive debts first, in other words your credit
cards. OK, credit cards offer a convenient way to pay for
goods and services but if you can't clear the balance every
month, consider a low-cost loan as an alternative. Do the
sums: a credit card debt (APR 15%) of £2,200 over
three years will cost £545 in interest. A loan at
6% will cost £209. A saving of £336.
Saving: £100s
3.
Cut the cost of your fuel bills
As the global demand for power threatens to outstrip supply,
prices are rising. But that doesn't mean you need to be
ripped off. The domestic market for fuel is a competitive
one and you can change supplier with a few clicks of the
mouse. Your new supplier will take care of the formalities
- you just pay less every month.
Saving: £100
4.
Consider installing a water meter
We take our tap water for granted. And why not? The companies
behind the supply exist to make a profit, we pay them to
supply water and have every right to expect it to flow from
our taps. But if it doesn't rain, supply runs dry and the
price goes up. So you may want to consider the possibility
of installing a meter. If you have a big home with few occupants
you may be surprised to learn you could halve your annual
bill.
Saving: £100s
5.
Cut your home phone bills
BT may seem to behave like a monopoly but it most definitely
is not one. If you must use your phone there are scores
of cheaper alternatives from cable companies that package
your telephone, television and even broadband internet access
to low-cost dial-up services that give you access to cheaper
calls using your existing BT line.
Saving: £100
6.
Consider a pay-as-you go mobile
Ask yourself this: is your mobile phone absolutely necessary?
If the answer is yes, then ask yourself whether you really
need all those minutes and texts that come as part of your
package. If you hand over £50 a month to your mobile
phone company, that's £600 a year – or around
£1,000 of your gross salary. But you can buy a pay-as-you-go
phone for as little as £30 and only pay for the odd
call as and when you need to.
Saving: £100s
7.
Make a shopping list
Food shopping forms a significant part of our monthly outgoings
and the supermarket is where the bulk of the money is spent.
Tesco takes £1 in every £8 spent by UK shoppers.
But be warned, stores spend a small fortune studying ways
of making us part with more of our money than we would otherwise
intend to. Have you ever wondered why your favourite song
is playing in the background as you navigate the aisles?
Have you even noticed the background music? Possibly not,
but you will have noticed at the checkout that the bill
is often more than expected. To circumvent this, simply
make a shopping list. Dig out the cookery books, plan a
few meals and only buy what you need.
Saving: £10 a week = £520 a year
8.
When was the last time you went to the market?
One way to beat the supermarkets - that is, to eat healthily
for less - is to use your local market stall. Lower overheads
should mean lower prices. At the time of writing, cherries
were on sale in Asda for £2.99 for 400g, the equivalent
at the local market was going for just over £1.
Saving: £100+
9.
Consider own-brand goods
You can buy a tin of Asda own-brand baked beans for 14p
and a loaf bread at Asda, Tesco or Sainsbury's for 19p.
Enough said.
Saving: £100
10.
Don't buy designer labels
Celebrities are given expensive clothes to wear. You're
not. At the end of the day, and let's face it you may only
wear the outfit once, can you justify paying hundreds of
pounds over the odds because a top designer has had his
or her name sewn on the label? And can you honestly say
you can tell the difference at a distance between a £600
designer bag and a £9.99 one from the market? Think
about it.
Saving: £100s
11.
Sell your clutter on eBay
Take this quick test: You're at home. Open a cupboard. Look
inside. If it's full of clothes you haven't worn, or 'good
ideas a the time' you haven't used, for, let's say, three
years - you don't need them. So why not sell them to someone
else who does? Ebay, the online auction house, has opened
individual sellers to a world of buyers. And you can flog
anything for the cost of a small commission. Tip: you may
want to buy a few items first to build up your rating as
a respectable eBayer before you start selling.
Income: Will depend on what's in your cupboard
12.
Use your talent to earn extra cash
Let's face it, if you're not a pop star by the time you
reach your 20s you're never going to be. But you may be
able to use your talent as a guitarist to teach other wannabes
the rudiments of the 12-bar blues.
Income: It's not unreasonable to charge £20 an hour
13.
Do DIY
We're a nation of obsessive DIYers and for around £100
you can take a course at your local adult education college
to improve the skills needed to tackle most household repairs.
If the college runs plumbing courses you could soon be on
track to wiping out costly call-out charges and extra insurance
policies once and for all.
Saving: £100+
14.
Shop around for the cheapest household insurance
Unless you drive – car insurance is mandatory - you
don't need insurance. But it's strongly advisable. Can you
afford to foot the bill if your house burns down? Probably
not. Similarly, can you afford to pay over the odds for
the same policy available elsewhere because you can't be
bothered to shop around? Possibly, but it's not advisable.
The internet has made finding cheaper insurance easy and
you can compare hundreds of policies in minutes.
Saving: £100s
15.
Don't automatically renew annual travel insurance
If your annual holiday insurance policy is about to expire
and you don't have a holiday booked, DON'T renew the policy.
You're handing your money over to cover an eventuality that
won't happen. You wouldn't have car insurance if you didn't
own a car. Simply restart the cover again the next time
you book a trip.
Saving: £50
16.
Choose cheaper breakdown insurance
The breakdown sector is dominated by big names such as the
AA and RAC. But being towed home if your car breaks down
is just another form of insurance like any other and there
are scores of cheaper alternatives.
Saving: Up to £100 a year
17.
Are you paying too much for your life insurance?
We're living longer. As a result the cost of insuring the
unthinkable is getting cheaper all the time. If you were
sold a policy when you took out or mortgage you may have
been under too much stress to shop around. You could be
missing a trick.
Saving: £100
18.
Book early
Low-cost airlines have created a market in holidays for
people prepared to fly to any destination provided it's
cheap. You can benefit from this too. Just remember, only
a few seats on each flight are sold at bargain-basement
prices and once they're sold, the prices rise. So book early.
Saving: £100
19.
Book your own 'package' holiday online
The popularity of High Street travel agents is waning as
more and more people warm to the benefits of researching
and putting together their own holidays on the internet.
If your holiday consists of flights, accommodation, transfers
and possibly car hire, then take this test. Order a brochure
from a leading holiday company and work out the price of
your holiday including all the complicated supplements.
Now go online and, starting with the flights, try to put
the same package together.
Saving: £100+
20.
Learn to say 'no'
It's easy to capitulate to the demands of a screaming child
in a packed Woolworths on a Saturday afternoon. But don't
do it. Similarly, how often does a 'swift half' after work
turn into a £40 drinking session? Saying 'no' a few
times a year will do wonders for your bank account.
Saving: £100
23.
Don't pay full price for theatre or theme park tickets
If you are prepared to tolerate the unwieldy website and
hit-and-miss customer service, lastminute.com regularly
boasts some amazing deals for London's theatres and the
nation's theme parks. At the time of writing you can see
top West End show The Producers plus a two-course meal for
less than £20 a head, a saving of £60 per person,
and tickets for Chessington World of Adventures cost from
£12, a saving of nearly £50 for a day out for
a family of four.
Saving: £100s
24.
Beat the ticket touts
Ticket touts earn their living by getting hold of tickets
that are 'otherwise unavailable'. Well, here's the news:
they are available to everyone when they first go on sale.
You just need to know when they go on sale. Simply sign
up to for the free ticket alert newsletters from the main
agents to ensure that you're first in the queue.
Saving: £100s
25.
Stop trying to keep up with the Joneses
Trying to keep up appearances is little more than a costly
illness. Remember, you cannot judge someone by what they
have because you don't know how they got it. Chances are
they're in more debt than you are.
Saving: £1,000s
26.
Trade down your car
So, you bought an American sports utility vehicle (SUV)
that nets 15 miles to the gallon on a whim. Obviously we're
all very impressed – especially by the personalised
number plate. But can you honestly justify the ongoing expense?
If not, get rid of it. Then visit a car supermarket, where
you can choose from thousands of cars at knock-down prices.
If you're a true money saver, consider an ex-rental model
which you can pick up for a fraction of the cost of a new
one.
Saving: £1,000s
27.
Ask yourself: do I really need this?
Imagine the scenario. It's lunchtime and you've got an hour
to kill. You find yourself in a department store and there's
a sale on. You pick up a beautifully packaged selection
of barbecue tools and associated garden paraphernalia. And
it's half price. Now, stop! Ask yourself: Do I really need
this? Exactly. Now, put it down and walk away.
Saving: £100
28.
Walk/cycle to the station/work
It maybe a bit of hippie notion to many people but it's
free.
Saving: £100
29.
Get off the station before your usual stop and walk
We may be creatures of habit but isn't it worth tinkering
with the routine if it's costing more than £50 a month
in unnecessary fares?
Saving: £100
30.
Cut down your drinking
A few beers after work a few nights a week is a financially
debilitating state of affairs. Set limits and stick to them.
Saving: £100s
31.
Pack up smoking
Never mind the health implications, the guilt and the smell,
your 20-a-day habit is costing you nearly £2,000 a
year. Pack it in.
Saving: Nearly £2,000
32.
Cancel your gym membership
If you pay your £40 a month by direct debit and you
use the gym three times a week, great. If not, cancel your
membership immediately. You'll soon save enough to buy your
own bike and, if you're so inclined, a rowing machine. Consider
running home from work three times a week. It's free.
Saving: £100s
33.
Use your library
The local library is a mecca for the money saver. You'll
never need to buy another cookbook, guidebook or lifestyle
manual again and if you can bear to wait a few weeks in
the queue for the latest blockbuster, you never need to
buy books again. CDs and videos are great value too.
Saving: £100
34.
The three-for-two trick
Now, there's a lot to be said for buy-one-get-one-free deals,
especially if they pass the 'Do I really need this?' test.
Then there's three-for-twos; a particularly cynical way
of stores to entice shoppers to buy an extra item they would
not otherwise buy. The 'offer' is always priced into the
deal so do your sums and shop around.
Saving: It's a principle at stake here
35.
Buy clothes and presents in the sales
So you need a new suit and the one you like comes in at
a cool £300. Wait! The chances are that you can pick
it up in the sale – and there's always a sale just
around the corner – for £150. The same applies
for birthday and Christmas presents. Buy in bulk in the
sales and you not only save money, but you enjoy stress-free
pre-Christmases and no last-minute birthday worries.
Saving: £100s
37.
The Christmas lottery
Instead of trying to buy a present for every relative in
your family, consider getting together beforehand and picking
one name from the hat. You then buy one thoughtful gift
for that one person rather than attempting to please everyone
at considerable cost. Everyone gets a present, everyone
saves money.
Saving: £100
38.
The National Lottery – it won't be you!
The odds of winning the Lotto jackpot are stacked 14m to
1 against each ticket. Some highly organised syndicates
buy 14,000 tickets a week, which reduces the odds to 1,000
to 1 - but that's no guarantee of a win. For the rest of
us, the difference to the odds between buying, say, 10 tickets
and one is so insignificant that you should limit yourself
to the one and save the extra money in a Cash mini Isa.
Saving: £100
39.
Use your Isa allowances
If you're not already aware, you can save up to £3,000
a year in a tax-free savings account called an Isa (for
the more financially savvy there's also a stocks and shares
Isa). It means you don't pay any tax on the interest accrued
so, if you have spare cash in your current account, this
is the difference between earning next to no interest and
up to £150 a year.
Saving: £100+
40.
Claim your benefits and tax credits
There was once a certain stigma in Britain attached to claiming
benefits. Well, not any more. The Government has put benefits
at the heart of the family budget and it's your money so
make sure you're claiming it. That includes Child Benefit,
Working Tax Credit, Child Tax Credit and other employee-related
tax benefits.
Saving: £100s
41.
How saving £50 a month now can save you £120
next year
Do you pay your insurance premiums by monthly instalments?
If you do, then consider this: you are probably being charged
a premium of between 15% and 20% for the privilege. In other
words, if your home and car insurance bill for the year
is £600, you're paying up to £120 a year in
interest by paying monthly. If you are in a position this
year to save up for next year's premiums in advance, you
can save money by paying the whole lot in one go.
Saving: £100+
42.
Do you need all those TV channels?
Britain is switching to digital-only television and time
is running out for you to choose your new digital TV provider.
The choice is already bewildering and with telephone-based
services now being launched it's going to get more complicated.
Packages range from full the monty, including every sports
and movie channel costing around £50 a month, down
to Freeview, which is free. Choose wisely.
Saving: £100+
43.
Bin the ready meals
If TV chefs such as Ainsley Harriott can knock up a meal
from a bag of random groceries including an aubergine and
a packet of sultanas – so can you. Ready meals may
be convenient, but preparing your own food saves money.
A visit to your library will reveal scores of books dedicated
to cooking proper meals in minutes.
Saving: £100+
44.
Take up a money-saving hobby
Hobbies not only open your mind to new experiences but they
also take up your time – important if you would otherwise
spend it in the pub drinking away your hard-earned money.
If a painting takes 20 hours to complete, and you normally
get through a pint an hour. That's a saving of a least 40
quid a picture. Think about it. Get painting. Go fishing.
Saving: £100+
45.
Avoid the payment protection racket
Banks and other lenders are selling expensive insurance
policies to cover loan repayments to people who don't need
it. Don't be a victim of the hard-sell.
Saving: £100
46.
Avoid extended warranties
Electrical goods are more reliable than ever. If your new
radio won't last three years perhaps it's not worth buying
in the first place. Think about it: how many times has your
fridge broken down in the last five years? And do you really
need the hassle of claiming for repairs to a £15 toaster?
Saving: £100
Link: Read our guide to extended warranties
47.
Shop online
The internet is gradually taking over. Online grocery shopping
is getting better all the time and there are plenty of comparison
websites to help find the best prices for bigger items.
Give it a try, unless of course you like fighting your way
through supermarket crowds.
Saving: Your sanity
Links: Online grocery service rated; PriceRunner - price
comparison site
48.
The Citizen's Advice Bureau is your friend
If your debts are out of control please seek help immediately
from your local CAB – their advisers can help you
work out a sensible strategy to get you back on your feet.
Saving: It could save your life
49.
Have I missed any money-saving ideas?
You can now add your comments to the Money Saving Overflow
50.
Save this article or send it to a friend
Use the links at the bottom of the page to send these money-saving
tips to a friend or save it for yourself for later.
Source:
www.thisismoney.co.uk
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