With no end in sight for the cost-of-living-crisis, these tips could help you cut spending and maybe even put some money aside.
1. Get energy efficient
We keep hearing it, but some people are still not doing all they can to reduce energy bills. This doesn’t have to be onerous. According to The Energy Savings Trust, turning lights off when you leave a room and not leaving appliances on standby could save a typical family up to £275 per year.
Other tips include:
- Turning your thermostat down one degree
- Taking four-minute showers instead of baths
- Always fully loading the dishwasher
- Turning down your boiler’s flow temperature
These could save you a combined £145 per year.
2. Shop around for groceries
Most of us are in the habit of going to one supermarket for all groceries and household items. But with stores competing for business, there are savings to be had by visiting several.
When weighing up where to shop, though, be sure to factor in travel costs. There’s no point increasing petrol costs to save a few pounds on shopping.
3. Optimise reward cards
Ten years ago, people limited reward cards to avoid having to overfill their wallet. These days, most reward cards have an app. So, you can have as many as you want all in one place.
And when you earn the points, check out all ways of spending them. Some help cut back on energy bills, while others allow you much-needed discounted days out.
4. Sell unwanted items
If you haven’t used it for a year or more, do you really need it? There are so many platforms for selling unwanted goods – and everyone’s looking for a bargain right now.
To make life easier, it’s best to set aside a day or weekend to have a clear out and put everything up for sale at one time. That way, you’re more likely to get a chunk of money in a week or a fortnight rather than small amounts here and there.
And plan for what you’re going to do with the cash you receive. It might be tempting to treat yourself to a bottle of wine or a takeaway, but that will be short-lived. If you can, put any profit you make in an ISA or savings account.
5. Consider remortgaging
Your mortgage is probably your biggest monthly expense. Which makes it potentially one of the most effective ways of reducing your outgoings.
According to The Guardian, in June 2022 more than 1 million homeowners were paying their lender’s standard variable rate (SVR).
If you’re on your mortgage lender’s SVR or if your current deal is set to expire in the next six months, now is the time to speak to a remortgage broker.
You may also want to consider using your remortgage to consolidate debts. If so, it’s essential you seek advice from a professional to ensure you make a fully informed decision on whether to roll these into your mortgage.