It always feels good saving money.
But at times like these it pays to be extra careful with your expenses.
So here are a few tips, which if applied, will save you cash.
Make a Budget You cannot expect to know where your money is going if you don't make a budget.
Track what's coming in from your salary, interest in your bank accounts and any investments you have.
Then do the same for your outgoings, mortgage or rent, utilities, food and entertainment, insurances for your home and its contents, your car and any other insurance cover you're carrying.
In tough times you might feel like you can do without insurance on some things, but it's at times like this that you really need to keep certain insurance cover to protect you from emergencies.
Once you know what's coming in and going out, you're then in a position to adjust accordingly.
Hopefully, your incomings are larger than your outgoings.
But many people are finding it difficult at this time.
Mortgage Costs There are several comparison sights out there on the internet these days, so it's relatively easy to find mortgage choices.
Check around for the best rates.
If you have the spare cash sitting in a bank account, you might want to pay off some of the mortgage.
This will reduce your total interest amount, possibly saving you thousands over the term of your mortgage.
Just make sure there are no penalties for doing so.
Bank savings interest rates are pretty low at the moment whilst some mortgage rates are still relatively high.
So it makes sense to use the money earning low interest to pay off a mortgage with higher interest.
Utilities Turning down your thermostat a degree or two can save you big over the course of a year.
That goes for water temperature also.
Making sure your home is properly insulated prevents draughts and therefore saves money too.
Unfortunately, loyalty to utility companies doesn't pay off.
The best deals always seem to be available for new customers.
So it pays to check prices and change to the cheapest provider annually.
The same goes for bank accounts, insurance, phone, broadband and mobile deals.
It pays to shop around.
Credit Cards I know several people who live beyond their means, usually by living off maxed out credit cards.
The amount of interest they are paying to the credit card company is staggering.
Lots of people want to enjoy life NOW.
They don't want to wait to buy something or take a holiday.
I understand that feeling.
But it's precisely that feeling of wanting something now, when you can't really afford it that has got the country into the awful financial mess we find ourselves in now.
The current housing disaster was caused by too many people taking on too much debt.
And the irresponsible banks who were willing to hand out too many loans to people who couldn't really afford them.
I'm not here to preach, but by maxing out your credit card and not paying off the total amount every month, you are making the credit card companies very happy.
And by paying off only the minimum each month, it will take years to pay off the debt.
So you're effectively throwing money down the drain, month after month, year after year.
If there's one thing which I could stress over nearly anything else, it would be to pay off your credit card debt.
Completely.
Bank Accounts Like so many companies today, it doesn't benefit you to be loyal and stick with a company long term.
Once you've been lured into choosing a bank account, the deal is often changed so you have to be aware of what's going on with your money almost on a monthly basis.
I know it sounds tedious, but unless you keep track of what's happening to your money, you stand to lose out.
Let me just repeat..
...
it's wise to pay off debt first (especially credit card debt), before putting money away into savings.
Banks are in business to make money for themselves and their shareholders..
...
that's been made very clear over the last several months.
They are not there to make you money.
That's your responsibility.
They're just parking it for you, sometimes at extortionate prices.
So keep track of bank interest rates and when there's a reduction, look around to see if there's anything better out there.
Again, the internet is a good place to look.
And if you do have substantial savings, be sure to spread your money around into different bank institutions.
Your money in the UK, is insured up to £50,000 per institution.
Several banks are under the same institution.
So if you have savings with two banks under the same institution, you may be at risk of losing your money in an emergency.
Supermarket Bills There are a lot of bargains to be had at your local supermarket these days.
So take advantage of them.
Stock up with 3 for the price of 2, or two for one deals.
Make use of the freezer to store items you're not going to eat immediately.
We also waste an awful lot of food that we buy.
Save the leftovers for another meal.
There's nothing wrong with leftover food, as long as you remember to store it properly and then reheat it if necessary.
Taxes Make sure you're not paying too much tax by claiming what is rightfully yours.
The tax system is a minefield, so seek professional advice or do your own research on the internet.
There are plenty of websites that offer information on all aspects of tax.
The Government's own tax website is often a good place to start looking for help.
And your local bank will usually have someone who can offer some financial advice for free.
Petrol/Diesel Fuel costs have shot up in the last year or so.
They dipped for a while but are now increasing again.
So it makes sense to conserve fuel if possible.
Make fewer trips, especially short ones.
Keep your tires inflated at the right pressure.
And make sure all fluids under the bonnet are topped up.
If you have a car with an onboard computer which shows you miles per gallon, you can dramatically increase your mileage by driving more carefully.
Be gentle with the accelerator.
Keep your distance behind other cars, because every time you brake you have to use the accelerator again.
And be sure to shop around for the best fuel prices.
Again make use of the various comparison websites.
Extra Cash So much for cutting back.
There are plenty of other ways of saving money eg.
cutting out the Latte every morning on the way to work.
£10 a week is more than £500 a year, just on coffee.
But what about making more money.
You can always try and get a second job, if there are enough hours in the day.
Ask for a raise.
Okay, you're boss might laugh out loud.
But if you present your case well and can explain why you feel your request is justified, you might be lucky.
Ask for overtime.
Again, at times like this many firms are cutting back, so that may not be an option.
If you own your home, you could rent out a spare room.
This can be quite a nice little earner, but check your tax situation.
Declutter your house.
Your junk could be treasure to someone else.
Put it on e-bay or sell it at a car boot sale.
Several people make a full time income using e-bay selling their stuff or re-selling other people's stuff.
If you have a particular skill, you may be able to provide private tutor services eg.
piano or maths tutoring.
Many firms require 'Mystery Shoppers'.
You could also try writing online.
Provide restaurant reviews or travel essays.
Plus there are literally hundreds if not thousands of opportunities online to make some extra cash.
However, it is becoming increasingly difficult to sort out the genuine opportunities from the scams.
So be very careful and do your research.
By applying all these tips which have been tried and tested many times, you can actually improve your financial situation greatly.
(C) Eric Williams 2009.
But at times like these it pays to be extra careful with your expenses.
So here are a few tips, which if applied, will save you cash.
Make a Budget You cannot expect to know where your money is going if you don't make a budget.
Track what's coming in from your salary, interest in your bank accounts and any investments you have.
Then do the same for your outgoings, mortgage or rent, utilities, food and entertainment, insurances for your home and its contents, your car and any other insurance cover you're carrying.
In tough times you might feel like you can do without insurance on some things, but it's at times like this that you really need to keep certain insurance cover to protect you from emergencies.
Once you know what's coming in and going out, you're then in a position to adjust accordingly.
Hopefully, your incomings are larger than your outgoings.
But many people are finding it difficult at this time.
Mortgage Costs There are several comparison sights out there on the internet these days, so it's relatively easy to find mortgage choices.
Check around for the best rates.
If you have the spare cash sitting in a bank account, you might want to pay off some of the mortgage.
This will reduce your total interest amount, possibly saving you thousands over the term of your mortgage.
Just make sure there are no penalties for doing so.
Bank savings interest rates are pretty low at the moment whilst some mortgage rates are still relatively high.
So it makes sense to use the money earning low interest to pay off a mortgage with higher interest.
Utilities Turning down your thermostat a degree or two can save you big over the course of a year.
That goes for water temperature also.
Making sure your home is properly insulated prevents draughts and therefore saves money too.
Unfortunately, loyalty to utility companies doesn't pay off.
The best deals always seem to be available for new customers.
So it pays to check prices and change to the cheapest provider annually.
The same goes for bank accounts, insurance, phone, broadband and mobile deals.
It pays to shop around.
Credit Cards I know several people who live beyond their means, usually by living off maxed out credit cards.
The amount of interest they are paying to the credit card company is staggering.
Lots of people want to enjoy life NOW.
They don't want to wait to buy something or take a holiday.
I understand that feeling.
But it's precisely that feeling of wanting something now, when you can't really afford it that has got the country into the awful financial mess we find ourselves in now.
The current housing disaster was caused by too many people taking on too much debt.
And the irresponsible banks who were willing to hand out too many loans to people who couldn't really afford them.
I'm not here to preach, but by maxing out your credit card and not paying off the total amount every month, you are making the credit card companies very happy.
And by paying off only the minimum each month, it will take years to pay off the debt.
So you're effectively throwing money down the drain, month after month, year after year.
If there's one thing which I could stress over nearly anything else, it would be to pay off your credit card debt.
Completely.
Bank Accounts Like so many companies today, it doesn't benefit you to be loyal and stick with a company long term.
Once you've been lured into choosing a bank account, the deal is often changed so you have to be aware of what's going on with your money almost on a monthly basis.
I know it sounds tedious, but unless you keep track of what's happening to your money, you stand to lose out.
Let me just repeat..
...
it's wise to pay off debt first (especially credit card debt), before putting money away into savings.
Banks are in business to make money for themselves and their shareholders..
...
that's been made very clear over the last several months.
They are not there to make you money.
That's your responsibility.
They're just parking it for you, sometimes at extortionate prices.
So keep track of bank interest rates and when there's a reduction, look around to see if there's anything better out there.
Again, the internet is a good place to look.
And if you do have substantial savings, be sure to spread your money around into different bank institutions.
Your money in the UK, is insured up to £50,000 per institution.
Several banks are under the same institution.
So if you have savings with two banks under the same institution, you may be at risk of losing your money in an emergency.
Supermarket Bills There are a lot of bargains to be had at your local supermarket these days.
So take advantage of them.
Stock up with 3 for the price of 2, or two for one deals.
Make use of the freezer to store items you're not going to eat immediately.
We also waste an awful lot of food that we buy.
Save the leftovers for another meal.
There's nothing wrong with leftover food, as long as you remember to store it properly and then reheat it if necessary.
Taxes Make sure you're not paying too much tax by claiming what is rightfully yours.
The tax system is a minefield, so seek professional advice or do your own research on the internet.
There are plenty of websites that offer information on all aspects of tax.
The Government's own tax website is often a good place to start looking for help.
And your local bank will usually have someone who can offer some financial advice for free.
Petrol/Diesel Fuel costs have shot up in the last year or so.
They dipped for a while but are now increasing again.
So it makes sense to conserve fuel if possible.
Make fewer trips, especially short ones.
Keep your tires inflated at the right pressure.
And make sure all fluids under the bonnet are topped up.
If you have a car with an onboard computer which shows you miles per gallon, you can dramatically increase your mileage by driving more carefully.
Be gentle with the accelerator.
Keep your distance behind other cars, because every time you brake you have to use the accelerator again.
And be sure to shop around for the best fuel prices.
Again make use of the various comparison websites.
Extra Cash So much for cutting back.
There are plenty of other ways of saving money eg.
cutting out the Latte every morning on the way to work.
£10 a week is more than £500 a year, just on coffee.
But what about making more money.
You can always try and get a second job, if there are enough hours in the day.
Ask for a raise.
Okay, you're boss might laugh out loud.
But if you present your case well and can explain why you feel your request is justified, you might be lucky.
Ask for overtime.
Again, at times like this many firms are cutting back, so that may not be an option.
If you own your home, you could rent out a spare room.
This can be quite a nice little earner, but check your tax situation.
Declutter your house.
Your junk could be treasure to someone else.
Put it on e-bay or sell it at a car boot sale.
Several people make a full time income using e-bay selling their stuff or re-selling other people's stuff.
If you have a particular skill, you may be able to provide private tutor services eg.
piano or maths tutoring.
Many firms require 'Mystery Shoppers'.
You could also try writing online.
Provide restaurant reviews or travel essays.
Plus there are literally hundreds if not thousands of opportunities online to make some extra cash.
However, it is becoming increasingly difficult to sort out the genuine opportunities from the scams.
So be very careful and do your research.
By applying all these tips which have been tried and tested many times, you can actually improve your financial situation greatly.
(C) Eric Williams 2009.