Five ways you're wasting money

Christine Whitfield highlights some of the biggest ways you're pouring money down the drain...

When it comes to wanting more money, the obvious solution is to earn more. But what if you could be quids in without changing your job or even your lifestyle at all?

Well, it can be done. Most of us are wasting money without even knowing.

Below are five of the most common ways we’re wasting cash, along with how we can stop doing it.

Poor phone plans

Remember back in the day when the only people who owned a mobile phone were city boys and posers? How times have changed! These days not only do you need a mobile phone, but a phone is not worth having unless it’s an all-singing, all-dancing little number that can send emails, surf the web and sync to your laptop/ipod/tablet in one swift move.

But while searching for the best handset may be a priority for many people, searching for the best price plan often isn’t.

The best price plan for you may not always be the cheapest. If you’re a text addict, then getting a tariff with unlimited free minutes but just 100 free texts is not going to be much use to you. Likewise, if you need to be able to access the internet on the go but you never send texts, getting a text/call bundle with no free internet will mean you’re often over your allowance each month.

But worry not, even if you’re signed in to a contract you can still switch tariffs at some point, the only proviso of the contract is that you stay with the provider. Contact your network and see how they can help. Find out more in Two ways to cut the cost of your mobile phone bill.

Buying brand names

It doesn’t take a genius to work out designer clothes are expensive. We all know that if we buy a basic pair of jeans we’re going to save a small fortune, compared to if we headed down to Bond Street. But we don’t seem to apply the same logic when it comes to food shopping.

In Tesco a 300g jar of the supermarket’s own brand classic coffee costs £2.15. For the same size jar of Nescafe Gold Blend you’ll be forking out £7.45, a difference of £5.30.

In Sainsbury’s, if you buy the shop’s own tinned tomatoes you’ll pay 35p for a 400g jar, whereas the same size tin of Napolina chopped tomatoes cost 98p.

Meanwhile a loaf of Asda’s own brand Danish white bread would set you back 53p while a Warbuton’s loaf costs 22p more at 75p. Find out more about dropping a brand in The easiest way to slash your food bill.

Not bundling your broadband and TV

Changing providers can be annoying. Whether it’s for electricity or your car insurance, it can seem like a hassle you could do without.

But what if it could result in extra cash you could most certainly do with? Bundling your TV and broadband so they are both from the same provider can save you a decent amount of money. If you have an entertainment package from Sky TV, for example, you could pay £19.50 a month. But, if you transfer your broadband to Sky too, you can get a similar TV package plus broadband for the same price!

Buying in bulk

Buying in bulk has long been thought of as a cost-saving exercise. If you buy a large amount of the same thing it can work out cheaper than buying individually. However, this has led to some consumers actually achieving the opposite of cost-saving.

Bulk items can go to waste and, in search of a good deal, consumers may find themselves paying more than they need to. Are you really going to need a case of olive oil? Or 100 jars of coffee?

Buying in bulk means paying upfront, and in these tough times that can be difficult. Be on the lookout for good deals, but don’t get carried away buying huge amounts of unnecessary things.

Bank charges

In February, the Supreme Court ruled in favour of banks in the great fight against overdraft charges. Labeled unfair by many, the ruling was a huge shock. Many consumers saw this as the final nail in the coffin of hope they’d be able to recoup the money they’ve paid.

But it is still possible to challenge your bank if you feel you’ve been unfairly charged. And the complacency many people display when it comes to this is losing them a lot of money.

If you want to challenge your bank over charges you have two option. You can approach the Financial Ombudsman Service. Visit the FOS website and you’ll be able to download the appropriate forms. Alternatively you can apply to go to court to fight the charges - be aware though your may have to pay a court fee to do this.

Find out more about complaining to your bank in How to complain to your bank and win.

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