Make your own spending cuts and save £4,435

Follow in George Osborne's footsteps and make your own budget cuts....

If you haven’t heard about George Osborne’s recent spending cuts, you must have had your head under a rock for the past few weeks.

But while many of us have felt pretty angry and frustrated following the spending cuts, research from Bacs Payment Schemes has revealed that the Spending Review has prompted many of us to make our own budget cuts, believing we can save almost £4,500.

So let’s take a look at 10 ways you can cut back and save.

1. Swapping food brands

The Bacs research found that 21% of households have already cut supermarket bills by swapping brand names for basic ranges. And a further 27% plan to follow suit by the end of the year, expecting to save £293 over the next 12 months.

This can be a really great way to save money, particularly given supermarkets' 'value' and 'basic' ranges are continually expanding. However, if you're not too keen on this idea, you could always just buy value ranges for staple foodstuffs such as flour, rice, pasta and tinned tomatoes.

You could then consider ditching the big brand names (such as Heinz and Kellogg's) for the rest of your shopping and switching to supermarket-own brands. This doesn't necessarily mean you have to compromise on taste. A few months back, we conducted our own taste test at lovemoney.com and found that in some cases, the tasters couldn’t tell the difference between the big brand and the supermarket brand, while in others, the supermarket brand actually tasted better!

Of course, there will be some brands you may not want to give up (for some of us, baked beans just aren’t baked beans unless they’re Heinz), but it’s still worth trying out these brands to see where you can save money. Find out more in The easiest way to slash your food bill.

2. Paying by direct debit

As I explained in Slash your bills by £200 in seconds, switching your regular bill payments to direct debit can save you a lot of money. In fact, the Bacs research reckons you could save more than £435.

Why? Well, it all boils down to the fact that some companies, such as mobile phone, landline and broadband providers, often charge an administration fee if you don’t pay by direct debit.

And others, such as energy providers, will offer you a discount if you do. So paying by direct debit really can be worth it. Just make sure you pay your insurance policies upfront as they are the exception to the rule, and will charge you more if you pay monthly by direct debit.

3. Switching energy provider

Switching your energy provider could also save you £282* over the course of a year. So make sure you take a look at the lovemoney.com gas and electricity comparison centre to see whether there’s a better deal out there for you.

It’s worth bearing in mind that opting for a dual fuel tariff and an online tariff may work out to be cheaper, as could (as I’ve just mentioned) paying by direct debit. Once you’ve found a cheaper tariff, all you need to do is get switching. You can find out how to do this in Take the hassle out of switching.

4. Spending less on holidays

Everyone loves to get away every now and then, but if you follow these top money-saving tips, you could save as much as £707* by simply cutting back a little!

5. Shelving DIY projects

Carrying out a few home improvements can work out to be very expensive. So 11% of us have already cut DIY expenditure, believing it will save us £698* a year!

Of course, if you still need to carry out some essential work, you can save money by ensuring you pay for it in the right way. Read The best ways to pay for home improvements to find out more. And if you think you might need some professional help, read Avoid being ripped off by a cowboy tradesman for some top tips on how to avoid getting caught out!

6. Buying second hand items 

This is a great way to save around £259* a year! Who needs brand new when you can buy many items second hand? Websites such as eBay and Amazon Marketplace are perfect for this. Take a look at Eight top tips for using eBay for more information.

Alternatively, websites such as Freegle and SnaffleUp are also pretty handy for picking up free, second hand items.

Or why not save even more money by swapping stuff? Read Stop spending, start swapping to find out more.

7. Cancelling TV and broadband subscriptions

Combined, this could save you £436*! Take the time to sit down and consider whether you should be paying as much as you do for your TV and broadband subscriptions or whether you could cut back. Take a look at The best and cheapest broadband deals to find out some top tips for slashing your bills.

8. Delaying annual car maintenance/purchasing a new car

According to Bacs, nearly a quarter of people surveyed expect to save an average of £819 by delaying annual car maintenance or buying a new car.

However, while reducing your spending is wise, make sure you’re not cutting back on the important stuff, such as your MOT. If you fail to get your MOT done each year, you could be faced with a fine of up to £1,000. And while getting this done can be expensive, there are ways to keep the costs down, so read Drivers: Cut the cost of your MOT to find out more.

Meanwhile, if you’re thinking of buying a used car, read these tips for getting the best deal.

9. Cancelling life/endowment assurance

Although this could save you around £343*, cancelling life insurance is another aspect you need to be careful about. If you have dependents, it’s really important that you have a life insurance policy in place. After all, how would your family cope if the worst were to happen to you, but they received no financial help?

And the good news is life insurance doesn’t have to cost a fortune. In fact, life insurance is now the cheapest it’s been in eight years. You can easily, and quickly, compare a range of quotes using the lovemoney.com life insurance service.

10. Cancelling charity donations

Finally, cancelling charity donations could save you around £163* a year, but obviously this depends on how much you give in the first place. Of course, if you don’t want to cancel your donation all together, but money is tight, you could always reduce the amount you donate or

If you’ve made any of your own budget cuts, why not tell us about them in the comments boxes below.

*According to Bacs survey results.

More: An easy way to cut your food bill | Slash your living costs in seven days