Insure your income
Insuring your income is a great idea during a recession as if you lose your job the insurance can cover payments on your mortgage for up to a year. The Government will also help homeowners who lose their jobs by paying the interest on mortgages of up to £200,000 from the 13th week after being made redundant. Mortgage protection can cover your repayments but make sure you check the small print as they have very specific terms.

Get a good credit card
Card issuers are pushing up their prices and also reducing their interest free periods so it is vital that you pay off consumer and credit card debts. Switching to a cheaper card is normally the best option and if you’re not in debt then have a think about switching to a cash back card that will give you back a percentage of the money you spend. If you are getting squeezed by those credit card companies and in need of debt help then make sure you shop around wisely for the best options as the recession is limiting them and debt help can be harder to come by.

Overpay your mortgage
If you can afford it then try to overpay your mortgage, Not only will this cut the term of your mortgage considerable and save you lots of money in the long run but will also means that if you do run into difficulties then you can take a payment holiday.

Change your savings
Savings rates have dropped dramatically with them being at the lowest in the history of saving, but there are still accounts that give you more than the base rate. There are still accounts out there that give 4% which is not too far away from the 6-8% we were getting last summer.

Get better insurance
Insurance is a necessity and you can always get cheaper and better insurance for your home/car. All you have to do is not accept that renewal quote, use comparisons sites or call your insurer and tell them you’re leaving as you’ve found a better bargain. They will offer you a better deal, and you can always haggle with them a bit more to get that low price. The same works for Sky TV and mobile phones just call them up and say you don’t want it anymore and they will lower their price to keep you.

One simple, effective way to save money on those dreaded bills is to get some thermal underwear. Ok so I don’t mean wear them to work but when you’re in the house just lounging around you could put on some thermals and turn the thermostat down a few degrees, not only will you be extra toasty warm, but by lowering the temperature by 4 – 5 degrees can help reduce your energy bill by up to 10%. Thermals only cost around £10-30 for a decent set; just think of the return on investment, they will probably have paid for themselves after just one month.

Thermals have had a bad image for a while but there are many brands out there that do not conform to that stereotype image, Damart for example, have been manufacturing thermals for 55 years and have very stylish and colourful ranges. More expensive thermals are even better at insulating and keeping you snug so if you fancied spending a little more cash you could buy some really good thermals and turn the heating down even further to save even more money.

This January looks set to be a cold month and no doubt we will all want our heating to be on high but for those of you who take my advice and get some thermals you can laugh at the poor fools who didn’t when the next quarterly bill comes.

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!

1. Affiliate scheme site

These sites make you shop through them to pick up points which can be redeemed for gifts. They make their money by redirecting you to the shops site and then making a percentage on what you spend. They are great as if you were going to the shops site anyway why not get something back from it. My favourite affiliate site is ipoints which has almost every major retailer, gives a good number of points and has a great range of gifts when you redeem your points.

2. Voucher codes

When shopping online try searching for voucher codes in Google first for your favourite shop. The site myvouchercodes.co.uk has loads of codes for many shops and they’re often for 10-20% off and free delivery which is great when you only spend £5 and don’t want to have to pay another £5 for delivery.

3. Savings websites

Moneysavingsexpert.com is one of the biggest names in saving and provides all the best deals and offers that are on at the moment such as 2 for 1 offers at well known restaurants, voucher codes, comparisons between credit cards, utilities, mortgages and consumer rights advice. Other sites such as thismoney.co.uk provide great advice on personal finance and global financial news.

4. Shop around

Price comparison websites are genius, they allow you to save time and effort by checking the price of the product you desire at lots of different shops in split seconds. Kelkoo.co.uk is a good comparison site for electrical products / gift. For insurance, gas and electricity comparison then check out moneysupermarket.com.

I hope you find these sites useful, I don’t know how I’ve ever lived without them as they have saved me so much money over the past few years. If you know any really useful sites that warrant a mention then post a comment and share the wealth.

The first step – and yes, this may be boring, but it’s necessary – is to sit down and work out your income and outgoings. If the latter is greater than the former, you’re in trouble, and it’s time to take control before things get any worse. If you don’t spend more than you earn, it’s still worth taking a look at how you can make better use of your money, as there are always ways of making cutbacks. Even if you have plenty of disposable income, why throw it away? It’s far better to save as much as you can, and use it for something worthwhile, or leave it earning you lots of lovely interest (okay, maybe not that much interest, but it’s better than nothing, or worse, spending everything).

Most people know how much their take home pay will be every month, which makes it easier to budget. Having worked out how much your outgoings are, you can then look at where they can be reduced. Grit your teeth, and spend an evening looking at ways of reducing your expenses. Some things can’t be cut out altogether, unless you want to live by candlelight and cook on a butane store, but they can be reduced. Look at how you can reduce your energy consumption, by keeping the thermostat down and switching off lights, for example, and research cheaper energy providers. Try car-sharing, or cycling to work, if possible.

Now look at non-essentials. This is the easiest way to make savings, even if the prospect of a more frugal lifestyle fills you with dread. Try going out less, cooking budget meals for friends instead of eating in restaurants, waiting for a film to come out on DVD rather than going to the cinema, and buying clothes in the sale. Set realistic budgets for everything, that means not denying yourself any fun, while acknowledging that you don’t have unlimited funds. Buy clothes in the sales and plan your wardrobe. Avoid impulse purchases, and think about whether you really need something. Change your mobile phone plan, and use your landline wherever possible. Keep your credit cards for emergencies. Follow this advice, and more of your income will stay in your bank account!

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