Friday, 25 October 2013

9 Everyday Tips to Save Money in your Household

1. Mortgage

The most expensive item you are ever likely to buy is your home. However if you do not have the luxury of being able to pay in cash, make sure the loan you use to finance it is the best available. For example, if you are paying your lender's full standard variable rate (SVR) you are probably paying hundreds of pounds a year more than you need to.
There are thousands of deals and this is a relatively easy way to save a lot of money. Remember: loyalty to your bank benefits your bank, not you and also remember to check the small print to make sure their are not any hidden catches.
Even better, if you can afford to make overpayments on your mortgage, you'll clear your debt years early and make massive savings.

2. Credit Card

One of the golden rules of financial planning is to clear your most expensive debts first, which almost always means your credit cards. Although credit cards are very convenient, if you can't clear the balance every month they can become very costly. Consider a low-cost loan as a much better alternative.

3. Fuel Bills

Recently Ed Miliband has announced that he promises to freeze fuel bills for two years should labour come into government, however this does not change the fact the global demand for power threatens to outstrip supply. Companies prices are always rising, but that doesn't mean you need to be ripped off. Changing supplier and making sure you’re on the lowest tariff possible could save you hundreds of pounds. Your new supplier will take care of the switch once you have worked out who is the cheapest, saving you money every month.

4. Water Meters

In the UK most us take water for granted, not only do we have a supply on tap but we have a brilliantly executed supply system that enables us to have water in our homes. The companies providing the water make a profit from doing so and we get the water as we want it. However if we had a sustained dry spell supply could run short and the price will go up. If you install a water meter you can monitor your outgoings and you could even halve your bill for only paying for what you use exactly.

5. Shopping Lists

Food shopping takes a considerable amount of your monthly outgoings and supermarkets take most of that money. Tesco takes £1 in every £8 spent by UK shoppers. Supermarkets try everything to try and get you to spend money, from the store layout to the background music. If you are unfocused on what you actually need, you can end up spending much more money. Simply make a shopping list. Dig out the cookery books, plan a few meals and only buy what you need.
Also never go shopping on an empty stomach or buy only a days food at a time. You should buy enough food to last at least a week, if you are going to your local shop every day you are often spending a lot more than you should on more expensive items.

6. Markets / Green Grocers

You can eat healthily for less by going to your local greengrocers or market stall. Lower overheads mean lower prices. Plus you get the added bonus of supporting the local businesses and economy!

7. Own Brand Costs

Supermarket home brands are hugely cheaper than their famous brand equivalents for virtually the same product. It makes sense to use them to save cash.

8. Designer labels

You may only wear some outfit once, can you justify paying hundreds of pounds over the odds because it is designed by a name brand designer? And can you honestly tell the difference at a distance between a £600 designer bag and a £9.99 one from the market? Think about it. Cutting out unnecessary extravagances can save you lots of cash.

9. Use Your Talent

Whether you’re a talented guitarist, writer or businessman. You can use your talent to make cash, whether it is teaching someone the guitar or writing content for cash. There are many sites which offer you money to use your talents and if you are feeling really entrepreneurial you can set up a business. Maybe one day it might even be your main source of income.

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