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Top Ten Ways to Save Money

December 2nd, 2008 by jamie | Filed under Daily News, Debt, Money Management, Saving, UK Credit Cards.

If you really want to save money, then possibly the best approach is to take a long hard look at your lifestyle, see where your hard-earned money is going and then see if you can make some savings.

And there are so many ways you can do this, but lets have a look at some of the best ways to make a difference.

Firstly, where does your money go? You get paid and first with their hand out is the Government. Now, most people pay tax via the Pay As You Go scheme, meaning that your tax is calculated for the tax year and you pay per month. Not much you can do about that you might think, but when it comes to paying tax, have a quick look to ensure you are not paying too much. Employers and tax inspectors are known to make the odd mistake. Also, many people now claim tax benefits (such as working tax credits, child tax credits), so just make sure they’ve got you right and that you are claiming for all the benefits you can.

Right, where next does your money gravitate? Usually, it’s on the house in the forms of a mortgage, or rental payment. If it’s a mortgage, have a look at the rate you are paying. If you move it to another firm (and at the time of writing the re-mortgage market is a little sticky), then you could possibly reduce your payment by a significant amount. If you rent, are you paying a fair rent, especially, at the time of writing, the economy is heading from bad to worse. It may pay dividends to think of upping sticks and moving to another house, maybe close by, but with a more competitive rent. And even if you politely let your landlord know that you are considering this, it may well be that he re-negotiates your rent anyway.

So that’s tax and benefits and your property; now it’s the turn of the money spent on keeping yourself alive: utilities and food.

Your property is a fast consumer of money, so keep an eye on how much it takes to run it. Not much you can do about council tax, but when it comes to electricity, gas, or oil, you have two courses of action. Use less of the stuff and also think about switching suppliers and getting a better deal. If you’re on a water meter (and this is good if you are), then use less of it (fewer baths, more showers for example).

As to food, choose this time to go on a diet and eat less. And think about where you buy your food. Drop the up-market stores and supermarkets, and head for the bargain shops, which most probably have the same brands anyway, they just don’t have all the fuss, and you could save a fortune.

Next up is entertainment. Still going out on a regular basis to restaurants, the pub, or the cinema. Enjoying yourself in the U.K. is a costly business, so go out less and spend more time amusing yourself at home with food and drink from the supermarket, and a rented film.

Right, so that’s halfway, five things have been covered: 1. tax and benefits; 2. mortgage, or rent; 3. utilities; 4. food; and, 5. entertainment.

In the next five you can tunnel down into the specifics, starting with credit cards, but moving onto the telephone, the mobile, the insurances you have and finally, the creating money. 

Your credit card can be your best friend, or your worst enemy. Use with care. Start to pay it off and if you can, put it away in a drawer, or, more drastically, cut it up. You could always switch to a new card company for a better rate, but read the small print first. Don’t fall for the low, or no interest for six months and then, when you want to move again, find you can’t as things have got tougher.

Your landline telephone needs some respect. These things eat money like a London taxi cab. Look around for a better deal and don’t be so chatty on the phone unless, of course, someone has called you.

Mobiles have become indispensable, or so we think. Do you really have to tell the wife and kids that you’re on the train? Is the call, and the subsequent cost, really necessary? And if you are on a mobile contract, think about switching to pay-as-you-talk. You’ll be very pleasantly surprised how much money you’ll save.

Finally, look around the house. Can you raise some funds by say selling some of your unwanted possessions. Would a bit of trading on one of the online auction sites provide some cash. Also, look at some of the freelance work sites – could you at night do some extra work and earn some more money.

Okay, where’s there’s a will, there’s a way. If you really want to save money you can, you just have to exercise some self-discipline.

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