The first and easiest step to saving money is to take a look over your income and expenditure. From reviewing a month’s worth of incomings and outgoings, you can then begin to draw up a budget.
It normally starts with budgeting shopping; whether it’s food shopping or clothes shopping used with disposable income. With a budget, you can limit how much you spend and save hundreds of pounds each month.
You can customise your budget; dependent on how much you want to spend on food, leisure activities, etc. But the most important thing about a budget is that you STICK TO IT!
With the money left over from your budget it can be tempting to go splash it out on something fancy but there have are now more and more ways to get involved with savings without having to do much work.
There are applications available on smartphones that can move money into savings account that can earn you up to interest 5%.
However, if you don’t like the sound of an app moving your money around for you then there are features that you can use with your bank. Some banks can automatically put aside some of your money in your bank account.
Lloyds Bank and TSB offer customers a ‘Save the Change’ feature which rounds to the nearest pound each time you spend and shifts this into a savings account.
What’s becoming the norm now is that people are taking money out their savings account in banks because they are hardly make you any money.
What’s most beneficial of an ISA savings account is that the interest is tax free making it more lucrative and is why so many people are deciding to switch.
The main way to save money on monthly subscriptions is to take advantage of family bundle deals.
For example, Spotify offers Spotify Premium for families which allows up to six people living at the same address to share a subscription for just £14.99 a month or £179.88 a year.
Furthermore, if you’re a student there are plenty of discounts available to you. An NUS card costs £12 for a year, £22 for 2 years and £32 for 3 years. You have access to over 200 discounts with different stores and services making life a lot more affordable.
Amazon also have a ‘Prime Student’ service that offers Amazon Prime at a discounted rate to students. This gives students access to Amazon one-day delivery, movies, music and much more at a discounted price.
If you own a home, it’s likely that your mortgage repayments are one of the biggest outgoing payments so it’s worth seeking a new switch deal that could save you more money and put a smile on your face!
On a £180,000 repayment mortgage lasting 20 years, a deal charging 4% would cost £1,091 a month. Remortgaging to a 2% rate would cost just £911 – saving you £180 a month or £2,160 in a year.
When deciding how much you could save by switching mortgage deals it’s important to consider early repayment charges as well as product fees.
There are plenty of ways that you can pay less tax completely legally. When your money is locked into an ISA or even if you have profits that are within the capital gain tax allowance then the taxman cannot touch it.
There are simple methods to pay the lowest amount of tax possible such as ensuring that your tax code is correct on your payslip.
There are also schemes that you can put your money into, for example a pension or an IFISA scheme.
When it comes to bills like your car, home and annual insurance it’s important to keep tabs on the date of their renewals.
Insurance firms will normally raise premiums after your first year with them and just hope that you forget or don’t even realise that you will be spending more for the same service.
Companies will even try and make their renewal offer sound better and like a good deal but ensure that you have a look online yourself to check out the ins and outs of the deal before you come to any decision.
One of the easiest way to manage auto-renewing is to use price comparison websites to find out what the best deals currently are.