As we brace ourselves for the rising cost of living, you’re probably looking for ideas of how to save money. The good news is there are steps you can take to slash your outgoings. That’s why we’ve put this article together to explain how to do it.
1. How to save money: Find where you can save
When it comes to how to save money the first step is to go through your finances in detail to see where all your cash is going. Then go through your outgoings in turn to see where you can save.
Can you save by remortgaging?
Your mortgage is likely to be your biggest outgoing so start by finding out if you can save money by remortgaging. This means switching the mortgage on your current home from one lender to another. Your new mortgage will then replace your old one. Remortgaging is all about shopping around to ensure you’re on the best deal for you.
Depending on your circumstances you might be able to reduce mortgage payments by hundreds of pounds a month by remortgaging. However, bear in mind there may be fees to pay. So speak to an expert adviser who will be able to run through the remortgage deals available to you and you’ll get to see what the potential savings are.
Save on energy.
The days of shopping around for a cheap energy deal may be over for now but you can still cut costs by reducing how much energy you use. For example, can you dry your clothes on a washing line or indoor airer instead of running the tumble dryer? And switch the TV off rather than leaving it on standby. And think about other ways to save on energy. These might seem like small changes but they will all add up over time.
Cut food costs.
Your weekly food shop is another major expense so think about how you can reduce it. Try making a weekly meal plan and make sure to include some budget recipes. It’s a good idea to cook in bulk and freeze some extra portions too as long as you have room to store them.
Consider your daily habits.
And when you’re going through your finances don’t forget to check small amounts you spend too. For example, a coffee on the way to work might only cost a couple of pounds but that will really add up over time if it’s every day. It’s not about cutting out all the fun stuff. But maybe save it for a weekly treat and take your own coffee in on the other days.
2. Ways to make extra money
Once you’ve been through your outgoings and are saving as much as you can think about ways to make extra money too.
· Sell your stuff
Go through your wardrobe and cupboards and see if you have anything such as old clothes you no longer wear that you can sell to make a bit of extra cash.
· Find extra work
And can you increase your income by taking on a part time job in the evenings or weekend? It won’t be possible for everyone but if it is it could make a big difference.
3. How to save money? Set goals
Now you know how much you’re able to put away each month think about what you’ll do with the money. If you don’t have a rainy day fund then it’s a good idea to start saving one to protect you against any unexpected financial shocks such as losing a job or if you need to replace your boiler. Knowing you’re saving for a specific reason may make it easier for you to keep going. And you could have different savings pots for different things.
4. Find the best savings account
And after you’ve worked so hard to save the money you’ll want to be sure you keep it in the best place. So shop around for the best account for you. It’s important to compare rates but remember to also check restrictions such as the maximum amount of withdrawals that can be made per year.
5. Track your progress
When you’re cutting back to save money it’s easy to start with good intentions but it can be hard to stick to it over time. So it’s a good idea to keep track of your progress as you go. This could be something simple like making a chart and marking off as you work your way towards your target. Put if somewhere you’ll see it like on the fridge to remind you to keep going!
If you want to find out more about remortgaging to see if you can save money, please don’t hesitate to get in touch. Our advisers are remortgage specialists and are happy to answer all your questions.