LOCKDOWN YOUR FINANCES TO SAVE £4,000
USE THE EXTRA SPARE TIME ON YOUR HANDS TO CUT OUT ANY DRAINS ON YOUR CASH FLOW, SAYS TRICIA PHILLIPS
IT’S a difficult situation at the moment with some people still being paid, while others await government support. So it’s vital we all ensure we aren’t paying too much for our basic bills.
If you’re prepared to put in a little time and effort, there’s no reason why you can’t make a positive impact on your bank balance.
Andrew Hagger, from personal finance website Moneycomms. co.uk, says: “Many of us have got plenty of spare time on our hands at the moment, so why not set aside a couple of hours next week to give your finances a revamp? You’ll put some extra cash back in your pocket. Plus, you don’t need to set a foot outside of the house to do it.”
Our nine-step plan could help you slash more than £4,000 off your annual bills – and we’ve got a couple of ways you could make a bit of extra money to help boost your household budget.
IF, like most of us, you have a balance on your credit card or store card, there’s a simple way to save serious money – and clear your debt quicker.
For example, if you’ve got £2,000 on a card at an average interest rate of 19% APR and are paying back 5% of the balance, that would be £100 a month (but would gradually decrease as the balance goes down).
It would take nine years to repay the card and cost £803 in interest.
Simply by switching your card to a 0% balance transfer card and paying off £100 per month, you’ll be debt-free in just over 18 months.
Plus, you’ll be saving more than £25 per month in interest charges – that’s £300 in a year.
ANNUAL SAVING: £300
direct debits can easily save you £200 a year.
ANNUAL SAVING: £200
THE golden rule is to NEVER accept the renewal quote from your home or car insurance company. Check the price comparison sites and move if you can get the same cover for a cheaper price. If you find a better quote, first check if your current provider is prepared to price match (it’s sometimes worth a call to do this as it saves you the hassle of changing providers). Moneysupermarket says those who switch car insurance can save up to £270, while Comparethemarket says those switching home insurance can save up to £90.
ANNUAL SAVING: £360
from, with different rates and charges, that it’s a daunting task.
You can’t visit a traditional mortgage broker due to the lockdown – however, there are some slick new online mortgage brokers who will do all the hard work for you.
Dashly is a great example – just sign up and enter your mortgage details, even if your current rate doesn’t expire for a couple of years. It will automatically check the market every day and email you when a better deal is found. Other online mortgage brokers worth a look at are Trussle and Habito.
Andrew Hagger says someone with a £140,000 mortgage on an average standard variable rate (SVR) of 3.5% with 30% equity could switch to a five-year fix with HSBC at 1.54%.
It would reduce monthly payments from £810 to £678 per month – that’s £132 per month.
ANNUAL SAVING: £1,500
OVER the years, our money makeovers have shown that food shopping is an area where some of the biggest savings can be made. Simply by being a bit more organised and following our three key rules, you could chop £10-£30 a week off your grocery bill.
Don’t impulse-buy at the corner shop as it’s too expensive. Instead, plan your food shopping and go to the supermarket just once a week – it’s safer and more costeffective.
Plan your meals – make a list and stick to it. Don’t be tempted by special deals that are not essential and will end up sitting at the back of your cupboard for weeks or go off and need binning.
Don’t forget to use up food that you’ve already got in the freezer and at the back of your cupboards.
Not only will sticking to your list save you money and cut your food waste, it also means less time spent in the supermarket, which is a big plus right now.
ANNUAL SAVING: £1,040 (based on saving £20 a week)
THE colder weather is on its way out, but it’s still worth trying some quick tips to help keep your energy bills down while the family is spending more time at home.
Turn the thermostat down one notch – every degree lower can save you £50 or more per year. If your heating is on a timer, set it to come on 10 minutes later and go off 10 minutes earlier – that way you’ll save 30 hours of energy costs in three months.
Don’t leave lights on in unused rooms, or appliances on standby – this could save at least £50 per year.
Finally, if you’ve never switched energy suppliers before, it’s well worth looking into – investigate comparison sites such as uswitch. com or try the Mirror’s energyswitching service at mirror.co.uk/ energy or call 0800 0087794, and you can compare costs in a matter of minutes. Energy switchers can save around £300.
ANNUAL SAVING: £400