Top Money Saving Tips
There is one sure way to get ahead financially, one that has not changed over the centuries, it is: Make sure that your outgoings are less than your income. In other words, save money whenever you can! This is perhaps a little easier said than done however since most of us struggle to find places in our budgets from which we can trim a bit of fat. Yet when we stop to think about it savings are actually rather easy to achieve. The following are a few potential ‘savings areas’ that you should perhaps consider:
Clear your credit card every month: It is a golden rule of financial planning that you should get rid of your most expensive debts first. For most people this means the money that they owe on their credit cards. If you do use a credit card it would therefore be worth your while to make sure that you pay it off every month. If this is not possible right away you could consider moving your credit card debt into a loan that attracts a lower rate of interest (e.g. a standard bank loan) and then working hard to pay it off as soon as possible.
Switch your household bills to less expensive suppliers: Many people stay with energy and telecommunications suppliers for years without really considering that cheaper alternatives might be available. This despite the facts that the market for household utilities in the UK is extremely competitive and that switching suppliers could in many cases lead to substantial savings.
Always make a shopping list: Making unnecessary purchases is one of the reasons why many household budgets flounder. Protect yourself from this by always making a shopping list (even for non-grocery shopping) and then sticking to it. This will go some way towards protecting you from ‘impulse buys’.
Make smart shopping decisions: It is often the case that huge savings can be made on the weekly grocery spend by making a few smart shopping decisions. This could include buying some of your fruit and vegetables from a market stall and switching to ‘home brand’ products where available.
Get rid of your clutter: One man’s junk is another’s treasure! You may be sitting on some things that could be quite valuable to someone else. The rise of services like Ebay means that is has never been as easy as now to cash in on this fact.
Do not automatically renew your insurance cover with your current providers: It is very convenient to simply allow insurance policies to ‘run and run’. This does not mean however that it is necessarily the best thing to do from a cost saving point of few. It would be far better to get new quotes from a variety of providers every time that a policy becomes due. This applies to all kinds of insurance including vehicle insurance, home insurance and annual travel insurance.
Think before taking out ‘value added’ products: You will often be offered ‘value added’ products like ‘Payment Protection Insurance’ and extended warranties. It could be that they will indeed ‘add value’ to your purchase/transaction under certain circumstances. It would however be a good idea to ‘crunch the numbers’ to determine whether this is indeed the case before taking it up. In far too many cases the ‘added value’ applies to the vendor and not to you!
Summary:
- The fastest way to financial stability is to make sure that your income always outstrips your outgoings.
- Clearing credit card debts can result in significant savings
- Smart shoppers always make lists and shop around
- Your financial decisions should be determined by thorough research and not merely by ‘business as usual’
