Loading ...
(No Ratings Yet)
Loading ...Yearly Ways to Save Money
Posted:Abigail Andrews – Saturday, May 26th, 2007
Here follows a list of ways you can save money every year. You would be surprised how much it could add up with very little effort.
Save Money Every Year
Give up Smoking to Save money
I know you don't want to hear this, but it is one of the best ways to save money. I am not going to lecture on the health benefits, you know what they are, just a simple mathematical calculation will suffice. We have all seen these calculations before, but here we go again, try and think what you could do with this money. If a packet of 20 cigs cost ﾂ｣5.50 and you smoke on average 20 a day, the total for the year is ﾂ｣2002, WOW! Besides from July 2007 you will not be able to smoke in public places. Before you know it you will not be able to smoke anywhere but your own home. It will be a real hassle to smoke, so think about giving up now and make massive savings at the same time.
Useful sites:
Cancel Gym Membership
If it isn't you, I bet at least one of your friends and family signed up for the gym at the beginning of the year, only went for the first 3 weeks and then continued to pay membership fees every month since. As you are starting your healthy eating and fitness plan again next week you don't want to cancel. Do yourself a favour, if you're really going to use it regularly then good, keep it. However, if you pay ﾂ｣50 a month for gym membership and then don't use it, that's ﾂ｣600 a year wasted. Cancel your membership and you'll soon save enough to buy your own bike, a rowing machine or a running machine. Also, consider walking or running home from work three times a week. It's free.
Find Cheaper Travel Insurance
First step, don't buy from the travel agent or the tour operator, it is so much more expensive. Furthermore, don't renew an annual policy until you have a trip planned.
Useful sites:
Don't Extended Warranties
Do they really offer value for money? I don't think so. Think about it: how many times has your fridge broken down in the last five years? All retail goods have to last a year anyway, and many come with longer guarantees than that. Don't bother!
Water Meters
Consider fitting a water meter if your household uses a small amount of water or you live in a big house. However, before you go down the meter route you need to think about your future. If you go on a water meter you have a year to change your mind. After that it will stay in that house forever. If you are a couple and think you can save now, you probably can but if you plan on having children in the future, it may not be the cheapest option.
Don't be a Mobile Snob and PAYG
Is it essential to have the most up to date model, after all it's just a PHONE? If you can make and receive a call that's generally all you need to do! So stop staying contracted just so you can get that next upgrade. Ask yourself if you actually use the free minutes you get on contract or do you end up carrying loads over and losing them? Do you find yourself making phone calls and sending texts just to use up your free minutes? If you do perhaps you should think about going pay as you go. If you really need a contracted phone, try analysing your calls and texts and see how much you really spend, you may be on the wrong tariff and might be able to switch to a cheaper one that suits your requirements better. Whatever, stop sending unnecessary texts and making unnecessary phone calls when they cost you and you could save loads of money.
Useful sites:
Don't get into Debt at Christmas
We have lost site of what Christmas is about. Ultimately it's about kids and even then it should not be about getting your children better presents than all their friends just to keep up with the Joneses. By all means treat the kids, but instead of trying to buy a present for every relative in your family, consider getting together beforehand and picking one name from the hat - play secret santa, it saves money.
Sack the Estate Agents to Save Money
When you next think about selling your house, stop for a moment and think. Years ago, the best way to draw attention to the fact that you wanted to sell your house was to employ an estate agent who would put a for sale board in your garden and submit your house detail advert to local papers. However, is that as affective today? Well, yes, an advertising board never goes amiss but is only really affective if your house is situated on a main road with lots of passing traffic. An advert in the local press is good but what about those who want to relocate from other cities? Over 70% or people now use the internet to find their next property. Estate agents know this and advertise their properties on the top property sites. The thing is because of the internet, it really is not that hard to do this yourself nowadays.
Private house sales and property lets can help you cut out the middle man and save ﾂ｣1000s in commission. There are loads of sites out there that allow you to sell your house for half (if not less) than the cost of using an estate agent. You could save thousands with a little effort. Give it a go!
Useful sites:
www.houseweb.co.uk
www.houseladder.co.uk
www.mypropertyforsale.co.uk
Re-Mortgage to Save Money
Make sure the loan you get on your house is the best rate as your home loan is most likely to be your most expensive. 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. Never, ever be a loyal customer to a bank and if you can afford to make overpayments to your mortgage without penalties then even better, you could shave of years on the term of your mortgage and save money.
Useful sites:
Moneysupermarket 'Find a Mortgage'
Clear your Credit Cards and Loans
Make a pledge to clear your credit cards this year. Clear your most expensive loan first.
Downsize Your Car
Do you cringe every time a part on your car needs replacing as it is 3 times more expensive than most other vehicles? Does your car only do 15 miles to the gallon, or less? It may give you street cred to run around in that nice little sports car, but can you really afford it? If not, sell it, and buy a more reliable, efficient car and use the savings to build up a nest egg for an even better car in the future, which you can truly afford.
Furthermore, does you car really need to be brand new? You lose ﾃつ｣1000's every time you drive a brand new car off the forecourt. Why not get a 2 year old that looks pretty much new and save thousands?
Useful sites:
Too much Life Insurance?
Many of us are over insured. We know life insurance is essential if you have people who are genuinely financially dependent on you, or if you have a joint mortgage, so that it is paid off when either of you dies. But as we get older our children leave home, our mortgage is paid off, but we often carry on paying for life insurance. Start checking it out now, do you really need all the life insurance you have?
Remember to take into account any life insurance you get through work too. For example, your employer may provide 4 times your salary as life insurance. If your salary is ﾃつ｣20k and your outstanding mortgage is ﾃつ｣100k then in theory you only need to get ﾃつ｣20k life insurance for your family to be covered in the event of your death.
Airport Parking
If you have to drive to the airport, don't just park in the airport's long-stay car park. Some off-site car parks can be far cheaper. Also consider using a local company who will take you from your door to the airport and back for very little saving you loads of money. OK, you may not want to sit on a minibus with loads of other people, but half the time the bus is empty, or just one other couple, and it cost less than half the amount of parking your car for 2 weeks.
Useful sites:
Book Holidays Online & Save Money
More and more people are putting together their own holidays on the internet. Try this: 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. It is not always cheaper, but you may be surprised, and get a better package overall.
Useful sites:
www.flybmi.com
Direct Travel Insurance
www.lastminute.com
www.alpharooms.com
Book Early to Save Money
Only a few seats on each flight are sold at bargain-basement prices and once they're sold, the prices rise. If you know you'll have to make a train trip, booking as early as possible can mean big savings. A single fare from London to Edinburgh, for example, can cost as little as ﾃつ｣12.50 if you book far enough in advance. So book early.
Useful sites:
Buy in the Sales & Save Money
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. Get your Christmas cards and presents for that year in January for a quarter of the cost.
Use Cash Back Sites to Save Money
Cash Back Sites reward members in cash for their usual online shopping. When you shop online and click the link for shops or retailers from a website, it is likely that they are getting commission for introducing you to the retailer. This does not affect the price you pay for your online shopping as the money will come out of the retailer's marketing budget. Online shops spend millions of pounds a year paying commissions, and websites earn millions a year in this referral commission. Instead of keeping this commission Cashback Sites share a major chunk of this with you by paying you a cash back reward.
Useful sites:
www.cashbackjunction.com
www.cashbin.co.uk
www.clickcashback.co.uk
Free E-Cards
Do you, like me, think birthday cards, christmas cards, good luck cards are a bit of a waste of money? The price of cards just gets more and more ridiculous. There seem to be more and more reasons invented to have to send a card. I remember when i used to buy my mum a mothers day card, now there are "nana" mothers day cards too! I bought a card the other day and it cost ﾃつ｣4 for an A3 size plain card!! Its not only a waste of money but a waste of paper and a cost to the environment. I think we have lost the whole reasoning behind sending cards. Its about the wishes you send or the sentiment you express, and this can be done by sending a freee e-card. So when possible use them. Agree with your friends and family that you will stop wasting money on bits of paper and either stop buying cards or send and e-card instead.
Useful sites:
www.ecards.co.uk
www.devilcards.com
Buy "occasions" cards in the sales
If you cant send people cards by email then you may want to consider buying cards in the sales. After christmas all the cards shops sell off stock for at least half price. This is the time to pick up a bargin. buy next years christmas cards in January, you could even buy advent calendars then too. Buying easter eggs after easter is worth while too. Shops would just keep them in their store rooms themselves and drag them back out again next year! Think about when else buying in advance would save you and do it. It may not save you loads but it soon adds up.
Use your ISA Allowance & Review Savings
Don't let your money languish in accounts paying poor rates. Move the money to a cash ISA or good savings account. Cash ISA's are savings accounts that pay tax-free interest and you can put ﾃつ｣3000 a year in one. It means you don't pay any tax on the interest accrued so, if you have spare cash in your current account then you should think about putting it in one of these, as banks current accounts generally only pay about 1% before tax. ﾃつ｣3000 for a year in an ISA will payout ﾃつ｣150 in interest if it is at 5%. While your at it, educate yourself on the other types of ISA's, like share ISA's too. Read more in the Investments - ISA's section.
Claim Benefits and Tax Credits
Includes Child Benefit, Working Tax Credit, Child Tax Credit and other employee-related tax benefits, you maybe surprised what you are entitled to. Check it out!
Useful sites:
www.adviceguide.org.uk
www.dwp.gov.uk
www.askcab.co.uk
Watch Insurance Direct Debits Fees
If you pay insurance premiums by direct debit, make sure you are not being charged a premium of 15% or more for the privilege. If so you need to consider saving up and paying in full on a yearly basis.
Pay By Direct Debit to Save Money
Contrary to the item above, sometimes it makes more sense to pay by direct debit. Why pay it all upfront if you don't need to? You could save that money in a savings account and make more on it. Many people hate direct debits, for some reason people are petrified that a company will nip into there account and take money for things they are not owed. But there are safe guards. The banks agree to reimburse you if a company takes money out when it should not, or takes the wrong amount. And if you agree to pay by direct debit, you will save money; 5% or even 10% on gas, electricity, telephones, subscriptions and many other things you buy regularly. No more red letters or late payment fees too.
Payment Protection
Banks and other lenders are selling expensive insurance policies to cover loan repayments to people who don't need it. Most of the time you don't need it, so don't be a victim of hard sell tactics.
Pay Debt, then Invest
If you have spare money then saving or investing it is probably a good idea. But if you have a debt it is always better to use spare cash on repaying the debt rather than investing or saving it. Pay your debts off first then launch a savings plan.
Don't Do Instant Credit
Some of them are not a bad idea. If you can buy a sofa but start payments next year and it is interest free for 3 years (guess the company I am talking about), then instant credit makes sense, as you can use the money in savings elsewhere. However, many companies offer really bad rates of interest, or there are early repayment charges or other catches. It is usually better to arrange a bank loan or credit card for the bigger items. So read the small print and check the interest rate before accepting any instant credit, no matter how good it sounds.
Energy Labels Save Money
Make sure you read the energy labels on domestic appliances, because the wrong product will cost you extra money in running costs. I bet many readers did not know that an A-rated washer-drier costs ﾂ｣340 less in electricity and water charges to run over ten years than a G-rated appliance. With fuel charges flying up you should be thinking about saving money in areas like these.
Useful sites:
Insulate your Home
Reducing the amount of fuel you use for heating can often be achieved by insulating your home. Good insulation will keep the heat in the building and cold out. A lot of heat escapes through doors, windows, walls and the roof of a house. There are a number of cheap and easy measures that can make your home dryer and warmer. For example, if your home has wooden floors, you can fill gaps in floorboards and skirting with newspaper, beading or sealant, and you can eliminate draughts and wasted heat by fixing a brush or seal to your outer doors.
The most effective way to insulate your home is to insulate your loft. Most houses already have some loft insulation, but the energy savings will depend on how thick the insulation is. You can also put insulation or lagging around a hot water cylinder and pipes to retain heat. Again, your cylinder may already have a jacket fitted, but by fitting a new more efficient jacket you may improve your fuel savings. Insulation can be added in the cavity of your outside walls too.
You may also be entitiled to a grant to make you home more energy efficient, it is part of the governments commitment to "saving the environment" however, it will save you money too! See site such as:
Useful sites:
www.adviceguide.org.uk
www.evengreener.com
www.britisheco.com
www.doctorenergy.co.uk
Don't Depreciate
If you're buying a new car, pick one whose price won't drop like a stone. Search the internet for websites on cars that hold their price. What car have a great site for comparing depreciation values!
Foreign Currency
Don't pay commission on foreign currency as many organisations, such as the Post Office, don't charge it. Don't buy foreign currency at the airport the rates are terrible as they know you are probably desperate. Ordering online could save you loads of money.
Check your Tax Code
Your coding notice is sent out in January or February. Don't just assume that it's correct - apparently we pay over 300 million too much in tax. Check with HM Revenue & Customs if you don't understand your notice.
Age Allowance
Tell HM Revenue & Customs immediately if you have your 65th or 75th birthday during the tax year. You can get a higher income tax allowance for the whole of the tax year, not just from your birthday.
Popularity: 28% [?]
Comments
Leave a Reply