Get richer – without raising a finger!

From getting the best deal for your savings to slashing the cost of your mortgage, here are ten simple ways to be more prosperous in 2021

MILLIONS of us make a New Year’s resolution to save more. But according to price comparison website GoCompare, these promises soon wane and are finally ditched after just seven weeks. This is very understandable. For saving relies on self-restraint and endlessly having to relinquish nice things, and it’s easy to lose motivation.

But it doesn’t have to be so gruelling. Here are ten easy ways to save more, get extra from your investments, and free up money to allow you to think about your finances.

1 SET UP A DIRECT DEBIT AND SHIFT MONEY OVER ON PAYDAY

ONE of the greatest obstacles to saving is the self-discipline it requires. That’s why automation is key to success.

Shift cash into your savings account on payday rather than promising yourself to save whatever is left at the end of the month.

Annie Ulliana, from saving and investing app Moneybox, explains: ‘A golden rule of managing your finances is to always pay yourself first. We recommend setting up a direct debit into your savings or investments account right after payday to make it less tempting to spend the cash that you’re putting away for your future.’

Your bank may also help you save automatically by rounding up your payments and putting the change directly into a savings account.

Lloyds, TSB and First Direct are high street banks that offer this, alongside online banks Starling and Monzo.

2 GIVE YOUR SAVINGS A PROPER WORKOUT

YOU work hard for every penny – so make sure your savings are working hard for you, too.

If you’ve not checked the interest rate on your savings for a while, the grim truth is you’re likely to be accruing risibly little.

Millions of us hold money in Cash Isas from Halifax, NatWest, TSB, RBS, Nationwide and Santander that pay interest of just 0.01 per cent. All savings rates are currently low, but you can still do better by shopping around and l ocking your money away for longer if you are able.

For example, the average twoand five-year fixed rate bonds pay 0.66 per cent and 0.97 per cent respectively.

With inflation at around 0.3 per cent, it’s still possible to get a positive inflation- busting return on your cash.

3 GET MORE FOR YOUR MONEY BY INVESTING

IF YOU want your money to do some of the heavy lifting, consider investing, instead of just stashing it away in a savings account.

Returns tend to be higher over the long term, although there is an element of risk.

To take out the hassle, set up a monthly direct debit into a tax-free stocks and shares Isa. Regular investing also takes away the stress of trying to work out the best time to enter the stock market.

Investment platforms such as Fidelity, Hargreaves Lansdown and Interactive Investor allow you to set up a direct debit for a fixed sum every month.

Some apps, such as Moneybox, go one step further and let you i nvest your s pare change by rounding up all purchases to the nearest pound.

4 TRACK DOWN MONEY THAT YOU’RE OWED

FINDING forgotten money can be much easier than creating new savings. Make sure you claim every savings pot that is yours.

There is more than £20 billion sitting in lost pensions just waiting to be claimed by their owners – millions more in lost savings and current accounts. It’s easy to track them down for free. For pensions, contact the Government’s Pension Tracing Service at Gov.uk/find-pension-contact-details. For bank accounts, use Mylostaccount.org.uk.

You may also want to check for unclaimed Premium Bond prizes (at nsandi.com); lost life insurance policies (Unclaimed Assets Register at Uar.co.uk); and lost legacies ( Gov. uk/ government/ statisticaldata-sets/unclaimed-estates-list). If you’re living alone, make sure you’re claiming a 25 per cent council tax discount.

5 GET FREE MONEY FROM YOUR EMPLOYER

EMPLOYERS must contribute a minimum of three per cent of a worker’s salary into a workplace pension. However, some will pay in more if the employee agrees to chip in a bit more, too.

Check with your human resources department – it could be worth thousands of pounds.

6 GET A SAVINGS BOOST FROM THE GOVERNMENT

THERE are several Government schemes that reward savers. Help

to Save is an account that allows people on low incomes to get a bonus of 50p for every £1 they save over four years (gov.uk/get-helpsavings- low- income). More than 60,400 savers have recently earned their first bonus payment, receiving an average of £378 in time for Christmas.

The Lifetime Isa rewards savers who put money away for later life or to buy a first home. The Government will add a 25 per cent bonus to your savings, up to a maximum of £1,000 per year.

Finally, don’t forget pensions, as the Government tops up your contributions with the 20 or 40 per cent you have paid in tax.

7 GET THE BEST DEALS ...AUTOMATICALLY

WHEN was the l ast time you checked your energy tariff, insurance and broadband costs?

If you’ve not done so in a while, it’s sensible to shop around. You could save hundreds of pounds.

To avoid the hassle of shopping around for a better energy deal in future, you could sign up to a service that does it for you. WeFlip, Switchcraft, Labrador, Switchd and Flipper automatically switch your energy supplier if it will save you money.

Another switching service Look After My Bills says it saved customers an average of £281 in 2020.

Matthew Page, 39, from Suffolk, has not had to find a new energy deal himself for over two years since he signed up to Switchcraft. ‘I enjoy the warm feeling of knowing I’m not overpaying without having to do anything myself,’ he says. ‘The switches all happen in the background, my direct debit is changed automatically – and I just get an email saying it’s been done.’ If not using an automated service, make a note in the diary of when all current deals end – as this can act as a useful reminder to find new ones before they roll on to a higher default tariff. Do not be scared to haggle with an existing provider before switching as they might offer a better rate to keep hold of your custom.

8 UNSUBSCRIBE FROM THOSE TEMPTING EMAILS

WHEN a message from your favourite retailer pops up in your email inbox with the subject line ‘ SALE!’ or ‘Unmissable offers!’, it is hard not to open it. To avoid temptation, unsubscribe from email updates.

You can also stop targeted ads appearing when you go online, enticing you to buy products you have recently searched for.

If shopping online, consider switching to ‘ private browsing’ or‘ incognito mode ’. This will mean your search history will not be saved once you shut the window down.

9 PAY LESS FOR YOUR DEBT WITH ZERO RATE CARD

WHEN clearing a debt pile, you’ll not want to pay more interest than necessary. A zero interest balance transfer credit card can help consolidate debts and cut interest payments.

Other consolidation loans are available. But there are pros and cons – first check StepChange (Step Change. org) or Citizens Advice (CitizensAdvice.org.uk) for free debt advice.

10 SLASH THE COST OF YOUR MORTGAGE

MILLIONS of householders pay thousands more in mortgage interest than they need to because they didn’t look for a new fixed deal when their previous one ended.

Almost half of homeowners are on their provider’s standard variable rate, according to the latest figures from credit reference agency Experian.

It estimates households could save up to £5,000 by switching to a new fixed rate deal.

To save as much as you could just by switching mortgage deals, you would need to abstain from a lot of takeaways and cups of coffee.