Helping you get through the cost of living crisis...
AS HOUSEHOLD BILLS RISE, KEEP COSTS DOWN WITH SOME EVERYDAY SPENDING TIPS, SAYS HARVEY JONES
ALMOST everyone is strapped for cash right now as the cost of living rises at the fastest rate since the 1970s. So it’s time to fight back.
As inflation soars, now is the time to look at all your household bills and everyday spending, before they rocket even higher.
It may be worth finding ways of generating some extra cash too.
SELL YOUR OLD JUNK
Turn clutter into cash by selling stuff you once loved but is now gathering dust.
January is peak time for listing secondhand items on eBay, with women’s clothing, computer games and DVDs top of the sales chart.
“If you made impulse purchases in lockdown, sell them on,” says Emma Grant, head of Pre-loved at eBay.
Old tech, bikes, clothes, furniture and baby equipment can all fetch more than you think, so have a clear out and start listing them.
Thomas Allder, customer director at Vanquis, says: “Whether it’s clothes, homeware, unwanted Christmas presents, your old laptop, a TV, games or books, check the going rate for similar items and put them on eBay, Facebook Marketplace or GumTree.”
ZERO SPEND CHALLENGE
Challenge yourself to a few zero spend days a month, Thomas says.
“Simple tips such as planning your meals ahead, eating leftovers and avoiding shops can really help.”
How many days a year can you go without spending a single penny?
“This can help you become more conscious of your regular spending, as well as saving cash,” he adds.
SIGN UP FOR CASHBACK
Sign up for cashback and get paid when you shop at retailers such as Argos, Wilko and Marks & Spencer.
Websites such as quidco.com and topcashback.co.uk list retailers that pay commission when shoppers click through to them, and rebate some of that to you.
CUT THE CORD
If you don’t use your landline any more, stop paying for it. A third of households have an unused landline wasting £240 a year, comparethemarket says.
A WEIGHT OFF YOUR MIND
Loads of us want to get fit after Christmas but gym subscriptions can be dear, says Nick Drewe, money-saving expert at discounts platform wethrift.com.
“The good news is that lots of gyms are offering memberships deals and discounts in January, so shop around.”
The Gym Group and PureGym are offering up to 50% off your first month and no joining fee. But check contracts to make sure you can afford it, Nick cautions.
Retailers often offer discounts on home gym equipment at this time of year too. “Personal trainers and fitness instructors do free online classes on YouTube,” he adds.
GET SWITCHING
Two fifths of us have switched broadband provider since the start of the pandemic and may face significant price hikes when the initial contract ends.
Nearly 11 million homes face being moved on to a pricier default service, with o u t- o f- c o n t r a c t households paying about £4.70 a month more, or £56 per year. The average household currently spends £356 per year on broadband so check what you pay.
“You might get faster speeds for less money, too,” says Mubina Pirmohamed at comparethemarket. com.
TRANSFER YOUR BALANCE
Somebody owing the average £2,898 credit card debt could save £1,831 by switching to a balance transfer card, according to TotallyMoney.
These charge zero interest for an introductory period, rather than the current average APR of 21.43%.
Switching means your monthly repayments pay down debt, rather than servicing interest. Sainsbury’s Bank’s balance transfer credit card offers a 21-month introductory rate with no up-front transfer charge.
Andrew Hagger at moneycomms.co.uk says to “clear the debt before the introductory rate expires otherwise you could suddenly pay a lot more interest”.
START A SIDE HUSTLE
Brits unleashed their entrepreneurial instincts in lockdown by launching side hustles, banking them £6,300 in extra income last year alone, according to research from online marketplace Fiverr. The demand is out there, especially online, for side hustles ranging from online selling, gaming and voiceovers to PR, marketing and copywriting.
CAP COFFEE COSTS
If you love the barista touch, then coffee addicts can cash in by signing up to a loyalty scheme. Pret a Manger has a great value one, charging £20 a month for up to five coffees every day, according to card payments specialist takepayments.com, and the first month is free.
Head of marketing Sandra Rowley says: “While a £20 coffee subscription might sound like an expensive luxury, the savings could really add up.”
Pret charges £2.49 for a cafe latte – 31 of those a month would cost you £77.19, so its card saves you £57.19, even if you just have one a day. And you could save even more.
McDonald’s, Costa, Cafe Nero, Greggs and Starbucks also offer coffee loyalty schemes. Or save more by making coffee at home.
KILL THOSE ZOMBIE SUBSCRIPTIONS
The average adult has three or more entertainment and lifestyle sub
Around five million have no idea how much they’re paying, a study by online investment service Wealthify found, wasting £10 a month on “zombie” subscriptions they don’t use. Chief executive Andrew Russell says: “That’s money you could put to much better use.”
Wealthify offers Isas and pensions with no minimum sum and penalty-free withdrawals, and Andrew says: “Invest your savings to build up your wealth and financial resilience.”
TALK ABOUT DEBT
January is always a tough month financially but particularly this year, says Emma Prince, financial adviser at Quilter. But don’t suffer in silence.
“It can help to talk to friends or family but if this is uncomfortable, seek guidance. Go v e r n m e n t - backed services such as MoneyHelper, or charities like StepChange or Citizens Advice can offer free support.”