Money Saving Tips: 10 Steps to Overcome the Cost of Living Crisis
Santa can’t help you with the Cost of Living crisis, but a little elf-help could be yours. With our ten-step plan, you’ll enter 2023 in better shape without being a Scrooge!
1. Check Bank Statements, PayPal, etc.
There are many people trying to get their hands on your money for little return. Yes, you’re likely to spot your long-lost Uncle Nick Claus from Lapland who apparently died and left you millions, but you may forget about a free trial that turned into a paid subscription.
Review your statements for monthly payments. Make sure your subscriptions are still relevant and have good value compared to new subscribers. For example, I recently started paying for an Apple Family Plan. This plan let me combine Apple Music and Cloud backup into one. Not only is it saving me money, but I also get Apple Arcade and Apple TV for free! Not for me of course but for the kids… ahem.
2. Overpay in a Targeted Way!
Mortgage rates are on the increase, as are many other interest rates. When it comes to paying down your debts, this is the best time. Not only that, but the savings can be huge if you pay where the interest is highest. For example, if you’re re-mortgaging for a fixed rate, don’t over-commit yourself; use any spare cash to pay down higher-rate loans or credit cards.
3. Use a Cashback Site
No matter how much you cut back, you will have to spend money. When it comes to spending money, you would be amazed by sites like Quidco and TopCashback; they offer cashback on a whole range of purchases, often with no fees from them. You just buy via their portal and get anything from 1% to 50% back, it’s always worth checking.
4. Sell, Sell, Sell!
Christmas is the time for giving. All that giving and receiving (plus the excess of Christmas pudding) brings a lot of redundancies, from old phones to old trousers! Use sites like eBay, Vinted, and Facebook Marketplace to sell or gift to others, it’s better for your finances and the planet! I use Facebook to give away items I no longer need, it’s much better than landfill and there’s always a happy recipient.
5. Switch Banks
We’re not giving financial advice, but we all know loyalty is seldom rewarded, and lots of companies want your cash. The easiest way for credit card companies to boost profit is to get you to transfer your balance to them at 0%, knowing you won’t pay it back. So, play them at their own game! Transfer over and repay with the interest payment you would have previously paid, then transfer again before interest starts. There are even some cards for those with less than perfect credit that will let you do this.
6. Check Renewals
Get a planner, or a wall calendar, or just use the one on your phone. Find every insurance policy and contract you have from phones to the internet and write the renewal date. A month before it’s due, shop around and see what better deals there are. You can do even more damage when done with a cashback site too! Recently I got my daughter a new phone for less than my current network sim-only price; it’s an older model but new, nonetheless. I got cashback with the purchase as well and sold the old phone!
For motor insurance, it’s generally better to save a quote 21-30 days before renewal as last-minute renewals can be pricey. For TV packages, etc. don’t be afraid to be stroppy and threaten to cancel. I trimmed Sky Sports from my subscription a few years ago due to pricing, but a friend told me they managed to negotiate it for £2 a month for 18 months!
7. Sell the Diesel
Used car value, petrol, and running costs are all sky-high! You could make a buck selling your old car and then save on the petrol and running costs involved! We say, sell that old car and take an electric car on through salary sacrifice, we guarantee it can be cheaper than running your old diesel. If your employer doesn’t offer the scheme, then consider car-sharing clubs if you have one in your area, or even try carpooling with your colleagues!
8. Go electric
Electric cars are expensive, we all know that don’t we? Except, of course, many times they aren’t! If you want a luxury car, costs ramp up. However, EVs can cost from £25,000 new for a family hatch with low running costs, minimal maintenance, and lower motoring costs! Combine it with salary sacrifice and you can get a new car for less than the cost of keeping a 5-year-old diesel on the drive.
9. Switch to Off-Peak
Despite the myths, you can still switch electric tariffs. If you run high-drain devices such as washing machines, electric cars, and heating on electricity, definitely look at off-peak. You will pay a slightly higher daytime rate but at certain times, typically midnight to dawn, you will pay as little as 10 pence per kW. Electric cars and chargers can normally be set up to only charge at these times, bringing running costs down to as little as 1 pence per mile. Timer switches can be sourced cheaply to set washing machines etc to come on overnight too, saving you hundreds.
10. Get a Little ‘Extra’
As we all know, you never get something for nothing… fooled you again! You can get some goodies for free by just signing up for loyalty programmes, whether it’s coffee or groceries! For example, eBay gives nectar points, plus you can occasionally get cashback from Quidco too! Hotels.com give you a free night when you book 10, and again, cashback sites work! Check voucher sites when you eat out, many restaurants have BOGOF deals or free starters etc.
Want to find out more about salary sacrifice? Get the guide below and explore some great electric products, just look at the savings you could be making!