Thursday, August 15, 2013

Top Five Ways to Save Money

Saving money can sometimes seem like a huge chore. Trying to count your pennies in the supermarket or decide whether you can afford to treat yourself to a cream cake, can get very annoying. However, there are easy ways to save more significant amounts of money which may mean that you can avoid doing this. It is best to look at your biggest expenses and see whether you can reduce those as they are more likely to make a significant difference.
Rent/Mortgage
The rent or mortgage that we pay, tend to often be the most expensive bill each month. Therefore if this can be reduced, it can help a lot. To reduce rent, you will need to move house to a cheaper place. This could be a hassle and can be costly as you will need to find a deposit and pay for removals. However, if you can find somewhere cheaper it can make a big difference. It is worth looking around as you may find that cheaper places may not necessarily be significantly smaller or in worse areas.

With a mortgage, you will need to change lender in order to make savings. This may involve paying administration fees, both to the old and new lender and so this will need to be taken in to account. Take a look at what is available and see how it compares to what you are paying. You may find that you can save a lot of money if you change to another lender.
Utilities
Utilities are things such as electricity, water and gas. These are things that all home owners need to pay for and they can really add up. However, if you change suppliers you may find that you can save a lot of money. You will be unlikely to do this with water, but you may be able to get a water meter to save money. Do some research and see whether you can save money.
Phone
We often spend a lot of money on phones without realising. It is common for families to have a land line as well as a mobile phone for each member of the family. As well as a monthly payment, there may be the cost f getting new phones every so often as well. Take a look at how much you need the phones and whether you need the level of contract that you are on. Consider whether you can get rid of the land line or one of the mobile phones as well.
Entertainment
This includes things like eating out, drinking, DVD's, CD's, cinema etc. you may be able to cut down on these things without really noticing. If you often go out and then come home without really remembering what went on, then you are drinking too much. Just cut it down a little bit and you could see a big difference in how much you are spending. If you are just more aware of how much you are spending on entertainment, you may decide to cut it down.
Fuel
Fuel is something that just seems to be going up in price. By trying to drive less or incorporating more things in to one journey, you can make savings. Shop on the way home from work, if you are passing the supermarket, rather than making a special journey, for example. Take things out of the boot to make the car more efficient. Look around for the best deals on fuel as you can make good savings if you find vouchers, discounts or just check out prices so you can go to the cheapest place.

The good thing about saving in these areas is that they do not require big lifestyle changes. This means that they are easier to do. They also should make a significant difference to your monthly expenditure.

1 comment:

David G. McKenna said...

Great article, these are definitely the key points.

With mortgages, there's always much debate about short versus long and variable versus open. A shorter term will typically have a better rate, but you are taking on more risk.

Shopping on the way home from work is a great idea, and probably not done enough as it could be. Using a passive climate control system, you can still buy groceries in the summer on your way home from work!

http://www.findingoptimal.com/2013/07/summer-spoilage-solved-passive-climate.html