Cash advice
We could all do with saving more money, and financial expert Annie Mellor* says it’s not as difficult as you might think to squirrel some away every month…
‘With rent, bills and everyday expenses, it’s common to feel like you’re not in control of your cash, and it’s just slipping out of your grasp,’ says Annie. ‘But making easy, positive changes for a fresh start can help you save money, put you back in charge of your finances and make you feel better!’
1CLEANSE YOUR CREDIT HISTORY Do you have any credit cards and store cards that you don’t use any more? They could harm your chances of getting the best rates on a loan or mortgage. Having too many lines of credit open could cause concern for a lender, because it creates the impression that you rely on lots of borrowing. Old cards can also be a fraud risk, and having cards registered to previous addresses is a red flag to lenders. Track them down and cancel them!
2SHOP AROUND It’s easy to get stuck in a rut and stick to what you know. Using the same financial products, like credit cards and bank accounts, year after year could mean you’re missing out on good deals. Have a look online at current accounts that offer benefits to new customers – some will even pay you cash to move over – and check out the interest rates available on different savings accounts.
3DETOX FROM ‘INVISIBLE SPENDING’ If you’re constantly wondering where your money goes each month, it’s probably down to ‘invisible spending’. Coffees, lunchtime treats and small purchases all add up. Try having one or two ‘no-spend’ days each week to detox your spending habits. Just like the 5:2 fasting diet, this works because short bursts of discipline are much easier to keep up. Not only will you save money on the days when you don’t spend anything, but you’ll also be more conscious of getting your credit card out during the rest of the week.
4WATCH TUTORIALS When you want to learn new beauty tricks or master a new product, you don’t just muddle through – you watch a tutorial on YouTube. Similarly, if you want a money makeover, there are many amazing personal finance and thrifty-living bloggers out there. Check out ukmoneybloggers.com
5TRIM YOUR OVERDRAFT If you’re one of the 44 per cent of people** who use their overdraft for at least some of the month, you’ll know how easy it is to get stuck in the cycle. Getting out of your overdraft is hard, but not impossible. Challenge yourself to go slightly less and less overdrawn each month. Or, you might find it easier to save up a chunk of money that you can use to pay off your overdraft in one go, putting you back in the black for good.
6MUST-HAVE ACCESSORY Sometimes, new shoes can transform an old outfit. Do the same thing for your bank account – accessorise it with a new smartphone app. The ‘Chip’ app plugs into your current account to save cash for you automatically, by analysing your spending and working out what you can afford to save.