We’re living in precarious times and the future seems more uncertain than ever. But there are ways to make sure you stay more in control of your life and finances, and this guide is here to show you how with two simple but effective ways to save money.
Put Together A Budget
A budget is the foundation upon which all your money saving decisions will be made. If you don’t have one, how do you know where to make savings and by how much? Exactly – you don’t!
Gather all essential paperwork – collate bank statements, payslips, bills, savings, pension contributions and any other income.
Tot up your sources of monthly income after tax – also known as your net income – and then calculate your monthly essential outgoings, e.g. rent or mortgage, car insurance, utility bills, food, etc.
The money you’re left with is your disposable income. At this point, it’s probably worth checking bank statements over three to six months to give you an idea of average monthly spend on clothes, going out, alcohol, cigarettes, etc.
Once this is done, you can draw
up a budget with more realistic aims and make financial savings you’re more
inclined to stick to.
Reduce Your “Essential” Bills
Re-examine your utility bills. There’s a good chance you’ve been with your suppliers for a long time and loyalty, these days, doesn’t get you the best deals. Is it essential you pay more for these services? Of course not. It’s time to shop around and switch supplier!
It’s easier than you think and the savings you’ll make will surprise you. Depending on your current tariff, you could save up to £300 a year, so it really is something worth engaging with. And if you’re on a quarterly direct debit, or you’ve not been giving regular meter readings, there’s every chance you’re in credit with the energy supplier and it’s time to ask them for a refund.
When it comes to switching and the benefits available to new customers, the same applies to broadband and TV deals. An average household can save around £70 on broadband bills just by switching provider when its contract ends. Many households still miss out because they just don’t want the hassle but the reality is it’s very simple, so now’s the time to get involved and save money.