Try not to use credit cards if possible, 90% of the people use credit cards on things they don’t need and end up with almost double or triple the amount they owe. It’s best to save and buy with your savings, no credit burden on your shoulders.
But if the problem is inevitable and you have to get a cred card, use the amount and try to pay back as soon as possible, because the longer the payment will take to get paid, the more you fall into the trap of interest.
If it is hard to pay back the sum on monthly basis, then consider a low cost loan as an alternative, you can do the calculation, a credit card debt of APR 16.8% of £2,500 over five years will cost £1,212 in interest. A loan at 7.8% will cost £527. A sweet savings of £685
2. Don’t have to buy the latest version of mobile phones every time
A mobile phone is a necessity rather than a luxury, but buying a new phone every year is a waste of money, with the increase attention towards media and trends of materialistic world, sometimes we completely forget our actions and decision, a common example is an infinite queue outside an apple store especially on the first day of latest iPhone release.
REMEMBER, these products are to make our life easy not to push us down in even deeper stress, small expenses create big problems, keep the type of phone you can afford and the package of minutes, texts and internet.
Think, if you are paying £50 a month for your mobile phone, that’s £600 per annum or approx. £1,000 of your gross salary. When you can buy phones for less than a tenner and top up with a pay as you go vouchers. What’s the big deal?
3. Do you make a shopping list?
This might be a challenge for you if you are unorganised, make a list of items you require for your grocery. Without any planned shopping you end up buying more and useless products.
Think about a vacation, save enough money to go for a holiday, set a task and take the initiative. Trust me, it is not impossible.
4. Why buy designer labels?
Shop wise, it’s just a name and they sell the same product just like others with an expensive price tag, these big brands charge you, to market their name with the highest price possible. Celebrities get expensive clothes to wear with cash to market their product, you don’t.
Honestly speaking, you can save a lot with just a little search online, there are many with the same quality and better price, all we have to do is spend some time for the right product.
5. Sell your used items on eBay
Think, if you plan to buy a new iron machine, what about the previous one, all you have to do is, take some nice pictures, upload it on ebay, with in no time you will cover a reasonable amount of new item by selling the old one.
6. Do DIY
By taking a short course at your local adult education college, improving the skills to tackle most household repairs, you can save a fortune. For example if you know how to sort out the pluming issues at home, you will save a lot of expensive call outs.
7. Renewable Products save a Fortune.
Solar panels generate your own electricity; air source heat pumps provide you hot water with the minimum of expense (especially for fossil fuel users). Remember it’s a one off payment which can be recovered in approximately 2 year to 4 years’ time frame then it is a life time saving.
Don’t waste a moment and change your halogen or fluorescent bulbs to latest technology LED bulbs. This particular bulb saves up to 90% of electricity from the very moment you change them. It covers its cost in about 6 months to 1 years’ time frame. For example if you are using halogen bulb of 50w it can easily be replaced by a 5 watt bulb, if your annual bulb electric consumption bill is £1000 then after changing them to led lights it can be dropped down to £150 to £200 remaining bill, showing the savings of approximately £850 to £800.
Above all you will get rid of the hassle of continuous change of the light bulbs as led lights have an approximate life span of 30,000 to 50,000 hours which can be approximately 7 to 10 years, plus you save your bulb changing investment in the long term which is approximately 10% of the annual electric bill.
9. Cheaper breakdown insurance
This sector is dominated by big companies like AA and RAC, whereas job is same, being towed home if your car breaks down somewhere. There are many cheaper alternatives that cost way more cheaply.
10. Book early
A common mistake is booking your bus or aeroplane ticket yearly save you a lot of money. Low cost airlines are also growing up like EasyJet, which lets you to choose a seat.
11. THINK BEFORE YOU SPENDUse a reason to say ‘no’
Both for bachelors and parents, we must learn to say no.
When we go out with friends or family, there is an average unplanned expenditure depending on the family, which at the end of the month makes a huge difference. Try to control your emotions and learn to say no to yourself and to the kids when they try to persuade you to buy something which won’t leave a good effect on their health.
Why buy chocolate and ice-creams every time we go out, it’s better to prepare a fruit salad bowl bought from a pound a bowl shop and keep with you for outings. Save money and give a better health to children and yourself.
12. Avoid expensive days / evenings out
Most of the tourist places are free. For example museums, galleries, historic places, castles. Theatres aren’t free, But if you are living in London then you can get half-price tickets to the West End theatres every weekend.
13. Trade down your car
Why keeping a car which you can hardly drive or afford the fuel of. Calm your nerves down with a control budget. Yes you certainly can impress others with your private number plate on an expensive car, but can you justify the on-going expenses. Visit a car supermarket where you can buy a necessity not luxury.
14. Walk/cycle to the work
It’s good for your health and above all free to walk/cycle to the station or work. Only if its not faaar faaaar away.
15. Stop Drinking
Drinking gives you nothing but extra budget, not good for your health and worst for your savings. Try to leave it and plan some healthy activity, best to utilize the savings for travelling the world.
16. Quit smoking
Just like drinking smoking is lethal for you and above all your surroundings, gives a very bad effect to the children around you and can fairly be called as slow poisoning. On average a normal smoker spends 20%+ of budget on his smoking. It can fill up a big gap of your savings plan.
17. Buy two get one free
Don’t fall into this trick. Big companies put high prices on two items and offer the third one for free, keeping big profit margin a secret from everybody.
18. Claiming your benefits and tax credits
When life gets too difficult with expenses and the income is not breaching the target then Benefits offered by Government can act very handy, working tax credit, child benefit, child tax credit and other employee related tax benefits are great help for low paid individuals. Only if you are entitled to the benefits, it’s better to claim then face inevitable stress.
19. How saving £50 a month can save you £120 next year
Sometimes for a short relief we face big losses. We rarely notice that paying our monthly instalments on insurance premiums for home or car would cost us in between 15% to 20% premium, in simple words if any of our insurance is £600, we are paying up to £120 per annum interest on monthly instalments,
If you are in a position to save £50 a month for next year’s premium in advance, you can save £120 by paying the whole amount in one go.
20. HOBBIES Costly or Free you decide
Hobbies highlight your actual personality, shows the actual nature of a person. Better to indulge yourself in healthy hobbies which are almost free like painting, fishing, sports etc than drinking or gambling.
Time is the biggest asset we have and if we set our routine in pubs drinking away our hard earned money, it’s not only a loss of our money but our health and above all our precious time, which will never come back and can change our life if spend in a right direction.
21. Avoid extended warranties
Nowadays Electrical goods are more reliable than ever. Think about your fridge, how many times has it broken down in the last four years? Would you really go with the hassle of claiming for repairs for a £10 toaster? And how many times have you found the invoice with warranty after four years?
Warranties are just digits to boost sales, think about an average life span of a product and consider when you would like to upgrade the model for the new one.
22. Make lunch, reward yourself with a free car
Let’s plan your savings on your daily lunch.
Lunch = £5.00 / day
coffee = £1.50 / day
snacks = £1.00 / day
total = £ 7.50 / day
= £1800 / year.
An average car would cost £10,000, which should be covered in about 5 years. You won’t be supervised to know that most of people spend more than £7.50 / day, if you are one of them, please give us a SMILE.
Yes we agree that making your own lunch is not free, but please remember that sandwich is just two slices of bread and some stuff in between, and if you target a nice car then does a coffee really taste that good for a big goal.
23. Citizen’s Advice Bureau
Seek immediate help from your local CAB If your debts are out of control, they can help you with a sensible strategy to get out of your debts and put you back on your feet.
24. Share this article, chip in with your own tips, send it to a friend
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