Five clever things to do today

Rosalind Kent reveals five tips for dealing with rising costs...

There are certain things that you just can't help spending money on, even when trying to tighten your belt.

Increasingly, it feels like your spending is spiralling, usually on things that appear to be out of your control. Petrol prices, the soaring cost of food, fines for forgetting a credit card payment, child care costs - the list goes on! 

So here are my top five tips to help you to deal with all these inevitable costs in an intelligent and effective way.

1. Claim back bank charges

The first, and often very lucrative, thing to do is to look to your bank. If you (like me!) are one of those people who looks back over the years and laments the loss of so many banking and credit card charges, then there is something positive you can do about it.

Unfortunately, banks can charge you for anything from going over your limit on an overdraft to bouncing a cheque or a direct debit.

The matter is being dealt with by the courts, and in November 2009 the Supreme Court ruled that these fees were not illegal, which was a blow to consumers who were waiting for refunds. However, reclaiming your bank charges is still not an impossibility, and there is evidence of banks still paying out to persistent consumers, so do not give up.

Call your bank and ask to be sent all your statements for the last six years. Some banks may charge for this, around £10, but some do not. Go through and add up all the charges, then write a formal letter to your bank requesting their return (there are plenty of template letters to help you on the internet). I was offered nearly the full amount claimed, and I took it! Like so many things in the world of consumer rights, persistence is the key.

2. Find lost accounts

Once you have got a healthy chunk of your bank charges back in your pocket, and realise just what you can achieve with a bit of knowledge and perseverance, you may well be inspired to try other avenues!

Did you know that there are literally billions of pounds languishing in forgotten bank and savings accounts? You may think that there is nothing for you out there, but you can easily and quickly do a free check via mylostaccount.org.uk  and find out for sure.

I was sure I had nothing to claim, but gave it a go, and found a small savings account that had been opened in my name when I was a child, and never properly closed. I can’t pretend that there were millions in there, but there was money with my name on it, and now it is safely back where it belongs!

Read Get your hands on some extra cash to find out more.

3. Cut your petrol bills

Buying essentials, such as food and petrol, are ongoing necessities. Whilst these costs can’t be avoided, a little time, effort and planning can make sure that you are getting the best possible deal.

Petrol is a particular problem area, as over recent months the price of petrol is rising every time you drive past a station – going up faster and in the UK than in the rest of Europe.

For those of us who rely on the car, those rising prices can fill you with dread. But, just by making a few changes to the way you drive, and by planning you trips carefully, you can help to minimise these costs. Minor changes to your vehicle can increase your car’s efficiency.

Keep an eye on your tyre pressure (low pressure increases drag on the car and uses more fuel), de-clutter your car so you are not carrying unnecessary weight, don’t fill up completely at the pump (petrol weighs a lot!) and only use air conditioning when necessary as it uses up an awful lot of fuel.

Also try not to over-rev the engine, and always get into the correct gear to minimise excessive use of fuel. These all seem like small things, but if you make an effort to do them all you really can save substantially on fuel costs.

When buying fuel find the best place to fill up by going to the free website petrolprices.com. They will send you regular updates on where to find the cheapest petrol in your area. Find out more in Cut your petrol costs by a third.

4. Slash your food bills

Food shopping is another essential, but you can save a fortune with a bit of know-how.

For a start, shopping at the right time is a good tip. Huge reductions are made as the day goes on. The first reductions tend to appear at around 10am, and if you can shop after 7pm you can pick up some huge reductions as prices are cut by 75% or more!

Huge amounts of money can also be saved from trying to replace some of your premium branded items with the supermarkets own range. Try it with a few products; if you can’t tell the difference then keep buying them!         

Sign up to store loyalty cards – they cost you nothing and you can reap some great rewards if you use them properly. A good example is the Tesco Clubcard. You collect points in store, double points if you use the Tesco credit card to pay for your shopping, and receive vouchers a few times a year.           

These vouchers can be used to pay for goods in store, but it is much more lucrative to use them to buy rewards such as holidays etc. Find out more here.

5. Save on childcare

Childcare costs are one of the biggest family expenses, and with the recent decision about Child Benefit withdrawal for families where one parent earns more than £43,875 a year, costs are set to mount even further.

If you are a working parent you can take advantage of a little-known government scheme which provides Childcare Vouchers. This needs to be offered by your employer, but there are many companies that do offer this scheme. And if your employer doesn’t offer it, start campaigning for change!

This scheme allows for you to pay for childcare out of your gross income (i.e. before tax and National Insurance deductions). The benefit from this is substantial, and both parents are allowed to claim a maximum of £243 a month. This scheme is available to everyone regardless of income. Find out more in Five ways to slash your childcare costs.

If you return to work before your children have started school, you will have the added expense of nursery costs, or private childcare. However, you can reduce your outgoings in this respect by taking advantage of free education places offered by your Local Authority to children between the ages of three  and four.

This is not means tested, so it does not matter how much you are earning, and you have a guaranteed minimum entitlement of 12 and a half hours a week of free part-time early education. This can be claimed for up to six terms before your child has reached the compulsory school age of five, and can be a huge help in reducing your child care bills! You can find out more about this here.

So hopefully, by following these top tips, you'll be able to cope with rising costs.

More: Ten ways to cut your motoring costs | Protect yourself from the spending cuts