With more emphasis being placed on saving money, we look at how easy it is to cut down on your monthly outgoings.
The government recently announced some new schemes to encourage more people to start saving. The Help to Save scheme and newly announced Lifetime Isas have been put in place to allow everyone to put away money, no matter the level of income, and earn bonuses from the government. Many of us often have the best of intentions when it comes to saving, however in practice there are often unexpected expenses which pop up during the month which can hold us back.
This Is Money have put together a list of 50 ways to save money with many practical tips to help you to cut down on your regular spending. There are also some bigger financial changes you can make in order to reduce your monthly outgoings. Here are some of our favourite tips…
Change Your Attitude to Your Mortgage
If you are paying the full standard variable rate (SVR) each year, you could be paying hundreds of pounds per annum more than you need to. It’s important to read the conditions of your mortgage carefully, and shop around to compare deals. Making overpayments is not always an option for those trying to save, however if you are able to plan long term, This is Money say:
“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”.
Clear Your Credit Card Debt
Credit cards help to save you money in the short term, as you don’t have to pay for expensive goods until a later date. These expenses need to be paid back at some stage however and the longer it takes you to pay the money back, the more interest you will pay out in the long term. This is Money advise considering a low-cost loan as an alternative to a credit card:
“A credit card debt (APR 16.8%) of £2,500 over five years will cost £1,212 in interest. A loan at 7.8% will cost £527. A saving of £685”.
Shop Around for The Cheapest Insurance
While insurance isn't mandatory (unless your drive a car), it is highly recommended. Try not to see insurance as an unnecessary expense, rather a monthly bill which can be saved on. For instance, many people automatically renew their travel insurance policy. This is a waste of money if you aren't planning to take a trip within the current year. Simply cancel your plan then renew when you need to. There are many tools to help find well-suited insurance policies for the best price. We can also help you find the best travel and building & contents insurance. Visit our Insurance page for more information.
For more tips on saving money, you can read the full This is Money article here.