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Saving money the easy way
Saving money shouldn’t be a chore, it should be a challenge and you should look forward to what you will get at the end of it. Whether it’s saving to put a deposit on a house or just to afford the extras on that big family holiday there are some easy ways to cut back find you have more cash than you think.
1. Take a pack lunch to work – Taking a homemade lunch can save you loads of cash as you don’t need to splash out on that sandwich from prêt, cutting back on the daily Starbucks will also make your wallet heavier as spending just £2.50 a day on a coffee can really mount up.
2. Set up a direct debit – If your main bank account is always empty at the end of the month due to you just having to spend everything in it then set up a savings account and transfer a small amount of money to it monthly or weekly. This is a method of forced saving but makes sure you live within your means.
3. Use cash instead – Using your cards less and switching to cash will make you spend less, you will find you have a much more emotional attachment to parting with you hard earned cash rather than just putting it on a card.
4. Clear the most expensive debt – You should always clear the most expensive debt first and this is normally your credit cards, credit cards have huge interest repayments and if you cannot afford to repay the full amount each month then it might be worth considering a small low cost loan as the interest on them is normally half that of the credit cards.
5. Make a shopping list – Making a shopping list is essential, if you don’t you will come out of the supermarket with more items than you wanted and nothing that you needed. Try and plan the meals in advance of going to the shops, try own brand products to cut down on cost and never ever go shopping on an empty stomach as everything in the supermarket will look delicious.
6. Track your spending – Keeping a diary of everything you spend is a great way to keep all you’re spending in check, it will make you far more conscious of all your outgoings and any areas where money is being wasted or could be saved. You could use a spreadsheet on the computer or just a simple notebook, as long as you feel comfortable with it and will make sure you keep it up to date.
7. Shop around for the best deals – Looking around and comparing deals on essentials like gas, electricity, water, telecoms and insurance can save you vast sums of money. For just for a small amount of your time looking on a price comparison website, they will compare hundreds of companies’ quotes in seconds and help you save that extra money.
8. Doing D.I.Y. – Okay so when I say DIY I don’t mean building an extension or fixing a massive hole in the roof but if you do invest £100 or so in a night school class at a local adult college in a maintenance course such as plumbing or electrical engineering then it can avoid incredibly costly callout fees and save hundreds of pound in the long run.
If you just follow some of these simple ideas you will be well on the way to saving up for that dream house or the holiday of a lifetime, If you are in debt you can use these tips to help alleviate the load and help pay the burden off quicker.
If you have any other great money saving ideas then please do add them in the comments section for all to see and use!
Tagged Saving, Saving tips, Savings
VAT Cut – What it means for you!
On December 1st the government decided to help consumer spending by cutting the rate of standard VAT from 17.5% to 15%, this is the lowest allowed rate of VAT permitted by the European Union and will remain at this low until the midnight 31st December 2009.
What is VAT
VAT (Value Added Tax) is a tax you pay when you buy goods and services within the EU; normally included in the price of the item/service unlike the United States where it is added on at the checkout. There are 3 different VAT rates.
Zero rate (0%), goods you don’t pay VAT on such as food, books, public transport, children’s clothes and shoes, and special exempt items i.e. Equipment for the disabled.
Reduced rate (5%), goods include domestic fuel and energy, children’s car seats, services such as installing energy saving devices and domestic conversions.
Standard rate (now 15%); is the default rate of goods and services that are not mentioned above.
So what does the rate cut mean for you and can you take advantage of the situation?
The first question to ask is whether the shops will pass on the rate cut to me, and it seems that many high street stores have. The prices on their items may be the same but when you go to the till you will find you’re getting a 2.5% discount off the marked price. Couple this with huge Christmas discounts available during the holiday season and it can add up to a nice saving.
If you have been planning to buy a new TV, some high end electrical equipment or a car now would be a great time to buy as you make a saving of £25 on every £1000 from the VAT reduction alone and throw in the Christmas discounts can help you save lots of money. Outside of the Christmas period or a sale season the reduction won’t be as noticeable and stores may slyly decide to not pass on the saving on anymore in a bid to increase their dismal credit crunch profits.
Don’t go crazy
Just because prices have dropped by 2.5% does not mean that you should go crazy and have a massive spending spree, flashing plastic willy nilly in December can give you one hell of a debt hangover in January so spend wisely and only splash out if you can honestly afford it.