Tips on how to cut your monthly outgoings

The Institute of Fiscal Studies suggests that the nation’s income fell by 20% in April. This drop in revenue may be the experience of others during and as a direct result of the current Covid pandemic and subsequent lockdown. Losing income can be a shock to the household budget. Below are some tips to help you think more carefully about your finances and to assist with reducing your outgoings. You can read more on how to get on top of your finances as well. 

So, whether it’s reducing your grocery bill, clothes shopping or changing your mortgage, the following tips will help you.

Shopping

It’s coming to that time of year, the time when we buy presents for our loved ones to celebrate Christmas. It’s so easy to get carried away. Best way to approach it is to set yourself a budget and stick to it.  It is the thought that counts not the value of the present! If you are purchasing gifts, then search the internet for discount codes first. Also, go through cashback websites so you can make a little cash from each purchase.  

Mortgage interest

If you have a mortgage, now is the time to shop around to see if you can get a better deal. By reducing your mortgage payment, you could save a lot of money. It’s effortless to do, check out this mortgage loan calculator where you can find the best deals around.  

Credit card interest

There are credit card deals around where you can transfer your balance on to a 0% interest card. They fix rates for a certain period of time. This means you won’t be paying interest, but instead paying off the balance. Remember though that the 0% interest only lasts for a certain period of time, therefore set your calendar as a reminder when it ends, and you can switch again. If you are unable to swap, make sure to calculate your credit card interest with a calculator from a company like Sofi, so you always know where you stand.

Check your credit score

If you don’t have a great credit score, you won’t be offered the best rates for mortgages or credit cards. Check your score and see how you can make improvements on it. Most credit scoring companies will have hints and tips on how to improve your score. 

Use a cashback website

If you do need to purchase items online, then go through a cashback website. There are several out there all offering you the cash back from your purchases. They have a list of discount codes too. This is an excellent way of saving money. 

Payday shopping

It can be very tempting to shop when payday comes around. Please stop and think about what it is you want to purchase. You don’t want to use up all your disposable income in one day. List the purchases you want to make, find discount codes and wait two days to see if you would still like to make the purchase. Alternatively, shop for preloved items. Second hand is just as good and often less than half the price! 

Be smart with your savings

Savings interest rates are not as reasonable as they once were. However, you can still get a good rate if you use up your ISA tax-free allowance. This is an excellent way of increasing income if you can leave your savings in a longer-term interest account. 

Your workplace benefits

Check what benefits you are entitled to as an employee. This could be anything from healthcare plans for dentist treatment or glasses to getting a lunch subsidy. Make sure you know what your employer is offering. If you are working from home due to the pandemic, then ask what support they can provide you with for paying electricity and heat costs

Lost accounts

Have you left money lying in an old bank account? 

Did you set up a savings account and forgot about it? Is there a pension out there somewhere with your name on it? Track these down as you may be surprised with what you find. Check out My Lost Account for tracking these down.

Build up your rainy day fund

Having a fund that you can draw upon when things get tough is crucial. Start saving immediately; it doesn’t have to be much, even if you have changed after visiting the shop, put it in a jar. It will soon add up. You can also set up a direct debit that goes to a savings account on the day you get paid. That way you won’t miss the amount. 

Change supplier

Most people don’t change suppliers for their gas, electricity or other household bills. Take some time to list down your utility bills and search online for a better deal.  If you don’t want to change, you can go back to your supplier with the information you have found and ask them to match the other supplier. Don’t stop until you get the best deal. You can also do this for your home and contents insurance as well as your car etc.  

Sell unwanted items

As well as buying preloved, you can sell your unwanted items too. I’m sure there is plenty in your wardrobe, at the back of cupboards and in the garage that you no longer use. You can turn these unwanted items into hard cash by selling them on. 

Ditch the named brands

When shopping, choose the less expensive brands. They often don’t taste that different anyway. Especially store cupboard ingredients such as pasta, rice, tomato sauce etc. Keep swapping and doing a taste test, and you will be surprised how little difference there are these days. 

Reduce food waste

Do you often buy too much food and end up throwing some of it away? You are not alone as a lot of families in the UK do this. Only purchase what you will use. If you do find you have too much, then cook it and freeze it. This way you will use it up and have a meal ready for the times you can’t be bothered cooking. 

Life insurance

Another way of saving money is to check if you have the best offer on your life insurance. This is particularly useful if, when you took out your insurance, you were a smoker and have since given it up. Check out the many comparison sites around and do some research. 

The right tax

If you are working from home, a tax rebate could be due to you. Check out the HMRC website for further information. Also, ensure you are paying the correct tax by checking your payslip. 

If you are married, there is also the married person’s allowance. All these things add up, so it’s best to check.

 Use discount codes

No matter what you are purchasing online, there are discount codes. Companies also offer discounts for signing up to their mailing list. These range from 10% to a great 25%. Watch out for these and use them when you want to purchase goods.

Set up direct debits

Some banks and utility companies offer a discount if you opt to pay by direct debit. Phone your utility company or bank now to see if they offer this. Also check out your broadband and phone provider too. 

Set up a spending diary

Are there times you visit a shop and come out and don’t know how you spent so much? Or do you check your bank account and wonder what some of the spending was for? 

Setting up a spending diary and tracking what you spend is a good way to find out where your cash is going. If you do this you may be more inclined to think about a purchase before you make it. Doing this is a great way of budgeting. If you don’t like doing it with pen and paper, there are plenty of budget tracking apps on the market now. 

Be loyal

Many companies offer loyalty cards. Having these often means you accumulate points for each spend. Don’t be loyal to just one store, find out the best loyalty cards and get those. 

Christmas is often the best time to spend your points as these can help with the purchase of Christmas presents. This way you reduce the amount of cash you have to spend.

Haggle

People don’t often like to haggle. However, you can ask for a store to price match a product you have seen elsewhere. Indeed some shops will offer to price match without you having to ask. It’s always worth a try to ensure you get the best deal for the product you are after. Especially useful for larger products such as electronics.

Turn off your electronics

There are so many gadgets these days and houses are filled with them. Keep your electricity down by switching them off at night or when you are not using them. 

This will help keep your electricity bills down. It is especially useful these days if you are working from home.

These are just a few ways you can save money and reduce your outgoings. Above all, it’s about what works for you. Don’t bury your head in the sand, take one step at a time and you will be able to reduce your outgoings and make additional cash for when you need it.

This is a collaborative post – to see how we work with brands visit our work with us page or disclaimer page