There’s no denying that times are hard at the moment. The economic downturn has left the vast majority of people feeling less secure in their finances, and eager to save money where possible. Here we list five simple but effective methods of saving money and cutting expenditure. They may not make you a millionaire, but they will help bolster your finances in the long run and leave you feeling more secure for when that rainy day looms on the horizon…
Set up a savings account.
Shop around and find an account that best suits your needs, and with a decent interest rate. Try to put money aside as often as possible. It doesn’t matter how much – just put in whatever spare money you have at the end of the week or month and it will soon add up. Better yet, if your finances are reasonably healthy, consider arranging a standing order from your main account so that a certain percentage of your paycheque goes straight into your savings account. This should remove some of the temptation to spend it because you won’t be able to get your hands on it first. And remember, this account should be purely for amassing money, not something to dip in to when you fancy a little luxury. Perhaps have a certain goal in mind – for instance, a new car or holiday, or even just paying off a bill – to keep you focused on saving.
Shop around for service providers.
Don’t just stick with the company providing your gas/electricity/phone/internet/insurance/mortgage out of familiarity. There are numerous providers to choose from, and you may not currently be getting the best deal. As the time comes to renew contracts, check around. Make use of comparison websites to find the provider that is best for you. As you can see, the list of facilities we make use of in our homes is extensive, and if you can save even a few pounds, euros or dollars on each, it will make a big difference to your bank balance.
Curb your spending; go easy on your credit cards and prioritise
When it comes to shopping, prioritise.
This applies to both groceries and personal shopping for clothes, electronic goods etcetera. Before you go grocery shopping, make a list of what you really need and stick to it. It’s all too easy to wander the aisles and find your fancy taken by treat foods but a list should help you focus. Consider also switching from brand names to supermarket own-brands. There is not a huge amount of difference in the foods, and the quality is always improving, but there is a big difference in price. The same goes for clothes – avoid designer labels and buy from the high street instead. You could save even more by buying from low cost retailers such as Primark, or even supermarket clothing ranges. They tend to mimic fashion trends anyway so you won’t look out of place, but your wallet will be a lot healthier. Only but those things you really need – the latest mobile phone or that must-have dress may leave you drooling, but do you really need them? Shelve your pride and prioritise!
Think environmentally.
All the advice we are given in order to ‘go green’ also works as a means to saving money. Insulate your loft and get double-glazing for your windows – a one-off expense now that will save you money in the long run. Turn down your heating and air conditioning and put on or take off an extra layer respectively. Switch off your lights, televisions, and computers. You can even turn the cooker off a few minutes before your food is cooked because the residual heat will do the job, and save power. Don’t drive unless it is absolutely necessary, or car pool, to save fuel costs. All these little motions will shave money off your bills, saving you money while contributing to saving the planet.
If in doubt, look to the past.
We’ve all heard riffs on the ‘Back in my day…’ speech, but there is something to be said for following in the footsteps of our parents and grandparents. Recessions come and go, and yet people continue to survive them. Now, more and more people are turning to seemingly old-fashioned ideas that saw people through in the recent past. For instance, use a washing-line instead of a tumble dryer (easier said than done in some climates, granted). You could try growing your own vegetables, although this would take some time to yield money-saving results. If you have children, they can wear hand-me-downs. Clothes can be sewn or patched to enhance their lifespan. Use reusable towelling nappies for babies rather than expensive disposables. Try using home-made cleaning products (e.g. bicarbonate of soda on a wet cloth instead of a cream cleaner, or vinegar for cleaning glass and silver). These techniques may require something of a lifestyle adjustment, but all these simple changes really can make a difference to your finances.