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How to save money without really trying
Who Wants To Be A Millionaire is ending, the odds on winning the lottery are around 14 million to one and as for a pay rise – forget it. But with VAT, prices and inflation on the rise, we all need to find a way to balance the books.
Here are ten ways to save money in 2011 without having to make too much effort.
1. Give yourself goals
You might want to buy a home of your own, spend Christmas in the Caribbean, buy a designer wedding dress or pay off your student debts (or your children’s).
Write down three achievable goals and keep the piece of paper somewhere you’ll see it every day, like the fridge door or your bedside table. It will remind you what really matters to you – and make any lifestyle changes easier to handle.
2. Check on your bills and statements
You need to know where your money is going now, so set aside an hour once a month to monitor your outgoings.
Look for old direct debits, such as a club membership or magazine subscription you no longer want or use, and cancel them. And watch out for errors such as double billing or double deduction of the same item, then ask for your money back.
3. Go bargain-hunting – without trading down
Join voucher code and secret sale sites, sign up to websites offering freebies and check newspaper and magazine websites for special offers and give-aways.
Samples of toiletries and make-up, outings for the kids, big discounts on clothes, free food and two-for-one meals out are among the deals you can expect to find.
4. Give yourself credit
Borrowing is a fact of life for most people but high interest rates needn’t be – or not if you’ve got a good credit history. It’s held in your credit report, which lists your credit accounts and repayment record.
You should check it regularly to be sure that it’s accurate and up to date and challenge any errors or items you disagree with – talk to the lender at once, or you could find it harder to get credit or have to pay higher interest. It’s free to see your Experian credit report and unlimited access to your Credit Score with a 30-day trial of CreditExpert - you can monitor your credit report online and find out what lenders can see about you.
5. Delete some debts
It may sound counter-intuitive but, with interest rates for savers still at an historic low, it may be better to pay off what you’ve borrowed instead of putting more aside.
You do the maths: if the interest you’re paying on your credit card balance is higher than the interest you’re earning on your savings account, you could end up quids in by clearing your debt.
6. Take an interest
Another approach is to look for interest-free deals on balance transfers or new spending – but you’ll only qualify if your credit report shows that you’re a reliable borrower who can comfortably repay what you owe.
One simple step that could boost your credit rating is to register to vote – lenders
can use the electoral roll to help verify the address you give them.
can use the electoral roll to help verify the address you give them.
If they don’t find you at your current address, you could lose out. And remember to save enough to repay what you owe when it becomes due, or you’ll be back in that interest rates trap.
7. Don’t pay more than you have to
If you aren’t already using price comparison sites to find the best deals, then start now. You could save hundreds on essentials such as utilities, mobile phone airtime subscriptions and insurance.
By using Experian’s LowerMyBills.co.uk, you can match your credit profile to the credit products on offer, minimising the risk of being turned down.
You could also investigate online billing – some companies offer cheaper rates if you help them to cut out paperwork.
8. Don’t be a snob
Do apples taste different if they come from a discount supermarket? Does premium brand washing powder get your clothes cleaner than an own brand alternative?
It’s unlikely, so explore cheaper equivalents for your normal weekly shop. You could even save money by swapping a trip to an out-of-town superstore for home delivery – you’ll save time and fuel and won’t be tempted to overfill your trolley.
9. Don’t cut corners
Skipping a credit repayment or two might seem like a saving at the time but you’ll pay a heavy price in the longer term.
For a start, you could face penalty charges, fees and a hike in the interest you pay.
And a missed or late payment stays on your credit report for at least three years, making it harder for you to borrow.
And a missed or late payment stays on your credit report for at least three years, making it harder for you to borrow.
It’s better to talk to your lenders if you’re having problems and ask if they will reschedule your debts so repayments are more affordable.
10. Enjoy yourself!
Regard saving money as a challenge and reward yourself for your successes – without blowing the budget.
For example, if you save £100, you could cook a special meal at home, while £500 might earn you a visit to friends or family for a long weekend.
And remember that every pound you haven’t spent takes you closer to making your goals a reality.
Published: 04/02/2011
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.