We can’t always increase what we have coming in (although here are some good suggestions), but there are plenty of ways to reduce your outgoings. Here’s a handful of suggestions on how to save money.
Don’t pay unnecessary interest
It’s so tempting to take advantage of ‘buy now, pay later’ schemes, or throw the purchase on a credit card for a couple of months. The interest really adds up over time and you’re simply paying more.
Try to curb your spending for a few months to build up a little reserve, then use it to make your purchase. You may no longer have the want or need when the time to buy comes. If you can’t save the money, be honest with yourself as to whether you can afford the purchase.
Don’t buy unnecessary insurance
There’s insurance we all need for when we couldn’t financially recover from a catastrophe. Home and contents, motoring – that sort of thing. But boiler and plumbing, or phone insurance? There are normally excesses to pay, and there’s always the chance that the equipment will deemed irreparable (but I’m sure there’s a nice deal on a replacement).
Instead, put the money aside for the eventual need. You can use a recommended independent to make the repair – probably saving you both time and money. If nothing goes wrong, bonus! It’s money in the bank.
Change brands
Sometimes the big brands really do make the best products, but there’s often little to no difference.
This is especially true in supermarkets, where an own or alternative brand of ketchup, orange juice, or pasta might be nearly identical to the leading brands. Plenty of blind taste tests have shown them to be preferred.
Be supermarket-savvy
Price reductions are great, but they aren’t always the best deal. If there are multiple options for the same product – check the price by weight.
If a 1kg tub of your favourite peanut butter is £5.50 and the smaller 250g jars are on offer at £1.50, it’s still more expensive. Most supermarket shelf prices will list the price by 100g or 1kg, which makes it easy to compare. Obviously it’s only cheaper if you’ll use a bigger container, but sometimes the smaller alternative costs less.
This is especially useful when buying vegetables; netted onions can cost significantly more than loose. You generally pay a premium for any fruits and vegetables that have been portioned and packaged.
Ignore the flashy ‘new low price‘ signs and focus on the bottom line. After all, supermarkets aren’t really going to show you how to save money – it’s not in their interests.
Use comparison sites
The law has recently changed regarding renewal quotes for home and car insurance. Existing customers shouldn’t be charged more than a new customer. This is fantastic for everyone (other than the companies’ profit margins).
That said, make a note of your insurance, energy, and internet contract expiration. Put in on your calendar a couple of weeks before it ends. Go on, do it now.
Check using one of the many comparison websites such as Go Compare and Money Supermarket and ensure there isn’t a better deal to be had.
Check your mobile deal
You’ll probably already be on the ball with this if you grab a new phone whenever your contact ends. If you’re not a serial upgrader then you are probably on a SIM-only deal. These are great as they often have rolling one-month contacts.
You might already be paying very little, but don’t forget to periodically check what’s available. I recently switched deal on the same provider and got twice the data for £3 less a month. Alright, it’s not mega bucks, but it’s £36 a year saved and I get more for my money.
Put something aside
You can save money by not spending; far few people have a ‘rainy day’ or emergency fund.
Open a saving account (check the interest rates available) and create a direct debit to move a little there after you’re paid. Not having it in your debit account will help remove some of the temptation.
You’ll be in a much stronger position once you have a little stashed away. Washing machine explodes? Never mind. Car engine check light starts flashing? Not the end of the world.
You can avoid paying for things on credit and can sleep better knowing you have a safety net. If you can maintain three months worth of wages in your emergency fund then you’re doing better than most.
Pack your lunch
It’s not glamorous, but not picking up a meal deal or grabbing something from Greggs every lunchtime will save you a bundle. £4-5 a day could be costing you over a grand a year.
You could make sandwiches, but it’s a lot easier to cook a little extra dinner and save it for the next day. Let’s be honest, whatever you make is probably going to taste better than a supermarket sarnie.
Use loyalty cards
Many of the big stores have loyalty/point schemes. If you’re shopping there anywhere then you might as well pick one up.
You can generally spend points as an alternative to cash, but some will let you buy vouchers which can offer much better value. Tesco, for example, gives you three times the point value on Pizza Express, Disney+, etc.
Search for discount codes and offers
When you complete an online checkout you will often see a discount code box. Take a few minutes for a quick internet search; sometimes you’ll get lucky and something will turn up. How to save money? Get the best price possible!
You likely already shop around when it comes to a purchase, but also think about any sales that might be coming up in the near future. Black Friday, for example.
Get cashback
One or two percent cashback is as good as a discount. The two main ways are using a credit card that gives you cashback, and services such as TopCashback. Credit cards will normally give you up to 5% for the first few months, then somewhat less. There’s also a small annual charge.
Cashback sites are free to use and the amount you get back depends on what you’re buying. Simply sign up and next time you are going to make a purchase, search the cashback site for the merchant. Use their link to the merchant and make your purchase.
Buy in bulk
This is really only an option if you have the space for storage, but you can save a decent amount buying non-perishables or long-life products in larger quantities.
Stores like Costco specialise in this, but there’s an annual membership fee. Check the prices of your regular purchases to see if it’s worth the effort. Shops such as Lidl and Aldi might be cheaper.
You can still make savings without using the big box companies. Supermarkets usually stock large bags of staples such as flour or rice; it’s considerably better value when you buy 25kg. Check out your local Asian supermarket for preferably better deals.
Cook in bulk
Having means made in advance is a great way to avoid being caught short and needing to grab a takeaway or ready-meal. It’s also a real time saver.
If you’ve got the freezer space then you can go to town; you can use the fridge but food won’t last as long and you’d be eating the same meal quite soon.
It’s generally little extra effort – just make more than you need. Making four bean burgers? Make 12. Lasagne? Use a larger dish and portion before freezing. Most meals will freeze well, and it’s quick to microwave or reheat in the oven. Just make sure you take them out of the freezer in advance.