Money saving tips
Trying to make sure we have enough money to pay for all the
things we need to in life is one of the biggest challenges that
most of us face. But, by looking closely at where our money goes
and learning to become thrifty, it is possible to stretch money
further.
Step 1: Keeping household bills under control
- If you have a bank account, paying your utilities bills by
direct debit could save you money, as you generally will be given a
discount for paying this way.
- You do not have to stay with the same gas, electricity or
telephone suppliers and as long as you have not signed up to a
contract over a certain period of time, you do not have to pay to
switch. Shopping around could help cut your bills. There are quite
a few price comparison websites on the internet that can help you
work out the best deals. For instance, Consumer Focus (link opens in a
new window), the statutory organisation campaigning for a fair
deal for consumers in England, Wales and Scotland and, for postal
services, Northern Ireland, has a comprehensive website with
information to help you get the best energy deals, apply for
energy-related grants and discounts, make energy efficient
improvements and much more.
- Prepayment meters are more expensive than paying for utilities
by bill, so if you have one and can switch, you should save
yourself some money.
- Cut electricity bills by remembering to switch off appliances
rather than leaving them on standby, switch off lights when you’re
not using them and only boil as much water as you need. Using a
washing line instead of a dryer will also help keep cut your
electricity bill.
- Turning down your thermostat by one degree may help you to
reduce your heating bills.
- Grants are sometimes available to help you carry out
energy saving improvements (link opens in a new window) to your
home. The Energy Savings Trust (link
opens in a new window) has a search facility on its
website.
Step 2: Eat wisely
- Take advantage of money saving offers on food but only buy what
you need. Most of us end up throwing food away, which is a waste of
money. Also see if you can switch to less expensive brands.
- Making a shopping list and sticking to it can help keep down
food bills. Many people recommend planning meals ahead so you buy
exactly what you need.
- Taking sandwiches to work or on days out, instead of buying
from cafes, will save you plenty of money, as will cutting out
takeaway coffees and bottles of water.
- Takeaways and ready made meals are convenient, but they cost
more than cooking from scratch.
Step 3: Cutting travel costs
- Do you have to take the car? Sharing journeys, switching to
public transport or walking will help save you money.
- If you are travelling by train, booking in advance is usually
cheaper and you may find there are rail passes that help cut costs
further.
- Coaches are usually cheaper than trains.
- Travelling on public transport outside peak hours usually helps
keep costs down.
Step 4: Insurance
- Are you paying more than you need to for your house and car
insurance? There can be a wide variation in the cost of policies
that offer similar cover so it’s well worth shopping around to save
yourself money. You can do this by asking different insurance
companies to give you quotes or by using one of the comparison
websites on the internet.
- Do you need all the insurance you have? Some insurance, such as
car insurance, is compulsory and others like travel insurance is
extremely wise but there are many optional insurance policies that
may not be right for you. See Insurance
Step 5: Handling money
- Are you claiming all the benefits you’re entitled to? You can
use the Turn2us Benefits Checker to find out.
- Can you get a better deal on any money you have borrowed, for
example by remortgaging your home or switching credit cards? If you
are paying less interest, you will see your money go further.
- If you have debts on credit or store cards, try to pay off
those with the highest interest rates first.
- If you have enough money to save, are you using your Instant
Savings Accounts (ISAs) allowances? Having an ISA allows us to save
a certain amount of money every year without paying tax on the
interest, which helps our savings grow faster. If you’ve used up
your ISA allowances, are your savings in an account with the best
interest rate? See Saving and investing
Step 6: Free time
- Are you one of the many who pays a regular subscription to a
gym that you do not go to very often, for television channels that
go unwatched or buys clothes you do not wear? Think carefully
before spending your money and it will go further.
- Cinemas, galleries and theatres often have cheaper days so
check before buying tickets.
- Use the internet to find out about free events in your local
area.
- Make the most of your local library. As well books that you can
borrow, libraries have free internet access and there are often
activities for children.
Step 7: Further information
Last updated: 17 June 2011
Turn2us - to access benefits & grants.
