10 Tips to make your money go further
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Work out what you are earning and spending
This may seem obvious but if you don’t know what you’ve got coming in and what you are spending, you won’t be able to manage your money effectively. So sit down and list all the bills you need to pay, what you spend in the supermarket or on a day to day basis for example in travelling to and from work. But don’t forget to include what you spend on things like going to the pub or on clothes – and be honest with yourself!
Prioritise your spending
Work out what are your spending priorities. At the top of the list should be bills for things like Council Tax, credit card or loan repayments and utility bills. If you miss these, not only will it take longer to repay but also you may find your credit rating adversely affected, which may mean you will find it more difficult to borrow in the future. Bottom of the list will be things in the ‘nice to have’ category.
Set a Budget for yourself
Be realistic in your budgeting and only buy when you can afford it. Remember some things like the latest TV are a luxury you could do without or which you might need to save for. Make sure you make allowance for things like birthdays or Christmas. Stick to the budget – if you consistently spend more than you earn you will simply get deeper into debt. You can get free budget planners on the web at sites such as on the Financial Services Authority website.
Convert your cast offs into cash
You might be surprised at how much ‘money’ you have lying around in items which you no longer use or like. And someone out there may be happy to buy it off you. So have a good look at what you’ve got and if you have items in good condition you could try selling them on an on-line auction such as Ebay.
Shop around for that bargain
Don’t just buy things from the first shop you see. You might find the identical item down the road for less or on the web. There are lots of great price comparison sites on the web for just about anything you might want to buy. The same goes for gas, electricity, mobile phone plans, insurance and many other regular items.
Go for the cheaper alternative
Think about going for the cheaper alternative. The chances are that the less well known make of TV or fridge is made in the same factory as the more expensive brand. Don’t ignore own brand items either and whatever you do, don’t get something just because “everyone is getting one.
Be willing to haggle
Most people might expect to haggle a bit when buying a car. But don’t be afraid to ask for discount or more favourably terms when buying things, like buying larger electrical items. If you do some online research beforehand, many high street stores will at least match the price and you could ask for some other things to be ‘thrown in’ for free or cheaper. If you don’t ask you won’t get.
Switch to cheaper borrowing
Look at the rate you are paying on each of your credit cards or loans and consider switching to a cheaper alternative. Speak to your bank to see if they can consolidate your loans into a single cheaper payment or you can compare rates on the web yourself and switch directly. There are still zero rate credit card deals about but make sure you check for fees and make sure you note when the free period comes to an end to avoid any nasty surprises.
Do it yourself
If you’ve got some work to do round the house you could learn to do it yourself and save on tradesmen’s bills. Ask a friend who may have skills in that area or even enrol at your local college for part-time or evening courses. If you become skilled too, this could even become a source of extra income for you.
Cut your bills
Do you really need all those Sky channels? How often are you making use of your gym membership? Why not take public transport instead of a taxi? You can cut your budget by taking a long hard look at the how much value you are getting from the money you spend. Planning ahead will help avoid unnecessary costs. You can always subscribe again for digital channels and many gyms will let you suspend your membership for a period of time.
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Dow Jones