After the literal loosening of belts over the festive period, January is the time to metaphorically tighten them and focus on being more prudent with your money.
Here are some straightforward ways to save money on a tight budget:
1. Reduce your energy consumption
With energy bills at record highs, simple things such as using a slow cooker, only filling the kettle to the amount you will use and turning your thermostat down by one degree can help cut energy bills by up to 10%.
2. Heat the person, not the room
Layer up or wear a blanket around yourself rather than heating the whole house.
3. Check out tax relief for employees
If you’re required to work from home by your employer, you may be eligible for tax relief on bills and expenses. And you can back claim for up to three years. Similarly, if you wear a uniform for work and wash it at home, you’re entitled to tax relief to compensate for washing costs. For more details visit gov.uk.
4. Review your income and expenditure
The new year is a great time to review your finances. If you have gym memberships, magazine subscriptions or any other regular financial commitments you no longer use or can do without, cancel them. A few pounds saved here and there can quickly add up.
5. Walk whenever possible
Walking to the local shops or to post a letter will help you get active as well as reducing your petrol costs. If you need to drive, think about car-sharing with a friend or colleague to split costs.
6. Create a weekly budget and stick to it
It’s easy to get tempted by offers when walking around the supermarket. But a few ‘special deals’ could result in you overspending on goods you don’t really need. By budgeting and being strict with yourselves, you can help avoid getting to the last week of the month and worrying about where your meals are coming from. Consider fresh and frozen alternatives that won’t spoil – even if just for January.
7. Clear credit card bills as soon as possible
If you’ve racked up debt over the last few months, work out a clear plan to pay it off. If you only pay the minimum amount on your credit cards, the debt can hang around for a long time. If you have a break from paying council tax until April, consider using this ‘bonus money’ to clear any credit card debt and make sure you’re in control of your finances.
8. Look into remortgaging
If you are nearing the end of your fixed term deal or are already on a tracker or standard variable rate, speak to a mortgage broker about your remortgaging options. A mortgage is usually a household’s major outgoing and finding a more competitive deal can have a serious impact on your finances.
These are just a few examples of how there are serious savings to be made by budgeting, employing self control and ruthlessly reviewing your finances.