With the cost of living on the rise, it may feel harder than ever to put money aside for a rainy day. To help we’ve rounded up some money saving tips to help cut costs. There is more than one way to save money or to cut down on your monthly expenses from lifestyle habits to tax relief. It might be cliché, but it’s true; if you look after the pennies, the pounds will look after themselves.
Transfer debt to a 0% interest card
Paying credit card interest? STOP! If you have a large amount of debt perhaps on an overdraft or on a credit card, it is likely you are paying high levels on interest. Switching to a 0% balance transfer credit card could save you money by slashing the interest you pay. In general these cards don’t charge any interest on your transferred balance for a set period of time, so you can stop paying the bank and use the money to pay off what you owe. There may be a small fee to pay when transferring the balance, but it could be worth it in the long run. Take a look at some 0% offers listed here, which may be of interest. Always seek professional advise from the bank or credit card company before transferring.
Organise a free overdraft
If you are overdrawn or your bank account tends to become overdrawn mid-month, then it’s time to review your overdraft charges. Some banks offer free overdraft up to a certain amount. So, it’s worth discussing with your bank or setting up a new account with a free overdraft limit.
Reduce Your Tax Bill
Are you claiming all the tax reliefs you are entitled too? If your employer has asked you to work from home you could claim working from home tax relief saving you over £100 per tax year. There is also rent-a-room relief, and married couple allowance that could help further reduce your tax bill. Find out more about how to save on tax. Be sure to seek advice from an accountant or gov.uk.
There are certain cashback websites that give you a certain percentage cashback whenever you spend online at a selected retailer by going through them first. They are free and simple to use and you could save money when shopping. TopCashBack and Quidco are the most well known and are free to use.
Get a better mobile phone deal
Take a couple minutes to check your calls, texts and mobile web data usage to ensure they are not consistently higher or lower than the current allowance you are paying for. If they are you may benefit from asking for a more suitable deal from your provider, which could save you money in the long run.
Sign up for loyalty cards
A whole host of retailers, restaurants and supermarkets reward customers for loyalty by allowing them to build up points every time they make a purchase. These points can often be converted into money-off vouchers. So, if you shop with a retailer on a regular basis or eat out at a much loved restaurant regularly then take advantage of the rewards on offer. If you frequently grab a coffee on the go from your favourite coffee shop, then look into their reward scheme. Many will offer money off a coffee or a free coffee after so many purchases. Be sure to not start spending more to earn the rewards, as it can be a slippery slope, instead use the loyalty to ensure you’re rewarded for your current spending. The TOFS Club+ App provides exclusive member savings across a range of departments which could benefit you.
Share your subscriptions
In a world of never-ending entertainment and streaming services, it’s likely you have several subscriptions in any given household. You may be able to save on these by taking out “family plans” allowing you to share accounts with other members of your household. Spotify for example offers 6 accounts for £16.99 per month under the current premium family plan, whereas an individual account currently costs £9.99 per month.
Quit on so called bad habits
Smoking and drinking alcohol are the obvious choices here. Not only are they bad for your health but can wreak havoc on your wallet too. For instance, a 10 a day smoking habit can easily cost you on average over £1,800 a year. Over 20 years that’s £36,000. Even cutting down the amount you smoke or drink rather than stopping completely could save you money. Reducing a 10 a day smoking habit to 5 a day could reduce your average cost a year by £900, a huge £18,000 over 20 years. And not to mention improve your overall health. Speaking to a professional for help to quit smoking or advice to help reduce drinking can provide much needed support.
Even by cutting out just 2 shop bought coffees, costing £3 every week a year would save £312 over 12 months. Why not try making your favourite takeaway coffees at home.
Swap & save on your weekly shopping
There are lots of ways to cut back on your grocery shopping, without having to limit the amount you buy. Try switching to a budget supermarket or swapping branded products for supermarket own brand to shave money off your weekly bill. Swap pre-prepared costly ready meals and sandwiches and make your own for less. You could even try cheaper cuts of meat and invest in a slow cooker. Simple swaps could save you pounds! Be sure to write a list before you go shopping, and only buy what you need. Meal prepping and cooking in bulk is another great way to save when money is tight.
Take the 1p saving challenge
This challenge is about scale over a year. Save 1p on day 1, 2p on day 2, 3p on day 3 and so on. After 365 days you could end up with savings over £650, which could be put to go use somewhere else.
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