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Step
One - Trim Everyday Expenses
We
all have a mountain of essential payments that we
must make every month; these include all our utility
bills, our car, telephone, internet and even cable
TV bills.
Although
we’re all aware of these amounts draining our
bank account every month, few of us give a second
thought to whether we’re paying too much when
often we actually are!
So,
here are just a few things you could easily do to
wipe off significant amounts from those bills –
amounts which will, over time, compound to create
a nice tidy little sum thank you!
Oh,
and if you think about every bill you have I’m
sure you’ll come up with many creative ways to
reduce all of them.
Your
Utility bills – have you considered switching
your suppliers? Some suppliers in your area will be
cheaper than others and all should give you a free
quotation of how much you could be saving based on
your previous month’s usage. You may get a further
discount if you pay each month by direct debit.
Be
aware of the amount of energy you use - switch to
energy saver light bulbs, don’t put half a load
of washing in the machine, wash-up small amounts instead
of using your dishwasher every time and slowly but
surely you’ll notice a significant reduction
in your overall bills.
Your
Car – shop around for cheaper car insurance,
combine chores into one journey so that you drop the
kids off on your way to work and do your shopping
on the way home. The more ‘extra’ journeys
you can cut back on the lower your fuel bill, the
less often you’ll have to have your car serviced
and the lower the mileage on the car when you come
to sell it.
Step
Two - Cut Interest Payments
According
to industry statistics, the average home owner in
the UK could reduce their annual mortgage payments
by up to £1,600 by just re-mortgaging to a better
deal. You need to examine the options available to
you!
Next
look at your credit cards, store cards, loans and
overdrafts and check out the rates of interest you’re
paying – obviously the sooner you can pay off
all debt and stop accruing new debt the better, but
in the meantime you should consider switching to credit
cards offering 0% on balance transfers, consider switching
to lenders offering lower interest rates on loans
and consider switching to a bank with lower account
charges for things like your overdraft.
Cut
your interest payments down and free up more cash!
Step
Three - Reign in Extravagance
Trust
me, I know that this is the least popular of all the
steps – but, do you really need that daily cappuccino
from Starbucks, could you live without that health
club membership that you hardly ever use, what about
stopping smoking, cutting back on alcohol consumption
and spending a few more quiet nights in than party
nights out? If you can’t get rid of your satellite
or cable TV could you reduce the packages you subscribe
to? If you like to eat out could you reduce the number
of times you do it per week?
Don’t worry, I’m not suggesting that you
should give up living your life the way you like it,
I’m just suggesting that you could maybe trim
a little off the load and live life today whilst at
the same time saving for your life tomorrow.
Step Four - Stop Making Bad
Investments
There
are so many poor performing, rubbish returning, invisible
interest paying savings policies out there that banks
and financial advisers push upon us that it’s
just not funny!
Yet
at the same time there are some fantastic inflation
proofing safer alternatives that could just net you
a nice rate of interest too. You need to look around
a little, use the internet as a good starting point
and find out what the banks and financial institutions
are offering. And if you’re saving money make
sure you’re saving tax too – ISA and pension
payments can be made tax free!
Oh,
and when it comes to insurances – from car, health,
home contents and even life insurance – shop
around, shop around, shop around! Big name brokers
often cost far more and if you buy your home contents
and life insurance all in when you get your mortgage
be prepared to pay way over the odds!
Step
Five - Add Income Strings to Your Bow
Are
you entitled to any tax credits, child payments or
other benefits? If you’re entitled you should
be claiming what’s rightfully yours! Could you,
your partner or your teenage children be contributing
a little more to the monthly pot by taking on a part
time job, doing extra shifts or working the odd weekend?
Think
as creatively as possible and make good use of any
extra time and energy you have to boost your family’s
income…you might even be able to earn extra income
from doing the things you love – maybe you could
teach an evening class in something you specialize
in, maybe you could sell arts and crafts you make
as a hobby or perhaps you could just baby-sit your
friends children?
Just
remember that there are many options available to
you and that every single step you take towards reducing
your outgoings or maximizing your income will be a
step towards a more secure financial future for you
and your family. by: Rhiannon Williamson
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