The best ways to cut costs
Culling your direct debits, lowering your boiler’s temperature and signing up for loyalty cards are all strategies to help combat the rising cost of living
Tips on how to cut your bills to fight the cost of living crisis are coming thick and fast as inflation hits 9%. But which ones will actually have a serious impact on your household budget? As we said on this page last week, the single best way to tackle rising prices is by increasing your income. But if you can’t get a pay rise or a side income, or it isn’t enough to cover rising costs, there are some cost-cutting measures that can help too.
Adjust your boiler and bills
Turning down the water temperature on your boiler in the summer could cut between 6% and 7% off your gas bill, says The Sunday Times. You should set your boiler to 75 degrees Celsius for the best efficiency and performance, according to boiler manufacturer Vaillant, but in the summer you can lower it to 65 degrees.
Take a look at your mobile and broadband bills. Around 16 million people are out of contract, says Martin Lewis in the Mail on Sunday, and could easily halve their bills; a visit to a comparison site could save you more than £200 a year.
A quick look through your list of standing orders and direct debits will also help. “Many can be culled in a click,” says The Sunday Times. And while you’re at it, go to the settings page on your iPhone or
It’s time to make your loyalty cards work harder
the Google Pay app on Android and check your recurring app subscriptions. Cancelling unused ones or ones you no longer need could save as much as £265 a year.
Loyalty pays
Make the most of loyalty cards. Tesco, Boots, Sainsbury’s, Waterstones and Lidl are just a few of the stores that offer loyalty-card holders discounts and points that can be used to cut the cost of a shop. Smartphone app Stocard conveniently allows you to store them all on your phone. Those picking up more than one medical prescription a month should consider an NHS prescription prepayment certificate; a one-off fee that covers all your prescriptions for a period of three months (£30.25) or one year (£108.10).
Switch or invest for fast cash
If you want to make some money quickly, consider switching bank account. Several banks now offer bonuses to those who switch current account. You could get £170 by switching to HSBC Advance, £150 from First Direct or £125 from Nationwide, but make sure the account suits your needs and you meet the criteria.
You can also get a bonus if you open a new investment account. Interactive Investor is offering £100 cashback if you transfer a stocks and shares Isa worth at least £10,000. Similarly, you can get £200 from Moneyfarm if you invest at least £20,000 in one of its stocks and shares Isas.
“Many standing orders can be culled in a click”