Big budget month day eight: cut your utilities spending

In the latest of our month-long budgeting series, we look at ways to cut your spending on broadband, home phone, mobile phone and water bills.

Yesterday we looked at how to cut the amount you spend on your energy bills. But energy bills are not the only utilities that you have to shell out for each month, so today we are going to highlight how to cut the other big monthly bills.

Cutting your broadband spending

The key with broadband is to only pay for what you are going to use. There's no point getting a package with unlimited downloads if you only need it to check your emails every couple of days. If you aren't sure how much you tend to download each month, then try using a download monitor like this one.

Similarly, if your home can only get a connection speed of 5Mb, you're wasting money if you sign up to a superfast package that you won't actually enjoy the benefits of. Check out this speed calculator to see what speeds you can expect from your internet connection.

Once you've worked out the sort of package you're after, then use a site like BroadbandChoices to compare the providers in your area and find the cheapest deal!

And if you aren't getting what you're paying for, don't stand for it – follow our guide on how to complain successfully about your broadband!

Cutting your landline spending

One way to save is to go for a call package. Most providers offer call packages that are either evening and weekends or “anytime”. These generally include all landline calls within the UK. If you make frequent calls during the day and are not on an "anytime" calling plan you should consider switching plans. You can use HomephoneChoices to compare deals in your area.

Paying for your line rental up front will also save you cash. According to HomephoneChoices, you could save over £40 a year by paying in a single lump sum.

Always make sure you pay by direct debit, as some firms will ramp up your costs by £5 a month if you use another form of payment.

If you need to call premium rate numbers – those that start with 0845 or 0870 for example, check out How to call 0845 and 0870 numbers for free!

And finally, why not try an alternative – Skype! That way your call is transmitted over the internet rather than via a phone network, and Skype-to-Skype calls are absolutely free! You can also use it to make free video calls to other Skype users.

Bundle it up

You can save on your landline and broadband bills by bundling them together in a single package. In fact, you can also bundle a digital TV subscription on top!

Research last year found that you can save as much as £300 a year by bundling your broadband, home phone and digital TV together. Head over to BroadbandChoices where you can compare the bundles available in your area. 

Cutting your mobile phone bill

Again, the key is getting a deal that most matches your needs. If you sign up to a package with unlimited text messages, but only send 100 a month, then you're throwing money away!

So track your mobile use for a couple of months to see what your general usage is like, then use a comparison service like Recombu to find the package that most closely matches your behaviour.

If you're only an occasional user of your mobile then you may be better off going with a pay-as-you-go tariff. But if you're always fiddling with your mobile then signing up to a contract will likely save you cash.

The longer the contract you sign up for, the lower your monthly bill is likely to be. But if you like to upgrade your mobile to the latest model, remember that you may be stuck with an out-of-date model for a while if you sign up to a lengthy contract.

There is a halfway house between pay-as-you-go tariffs and lengthy contracts – sim-only deals. They tend to run for about 30 days at a time, and offer the benefits of a monthly deal in terms of free minutes and texts, but with the flexibility that you can ditch the contract easily should you need to. However, you should note that you won't get a free phone with these deals.

Cutting your water bills

Sadly, unlike with mobile phones, broadband and home phones, you can't shop around between different water suppliers to find the best deals. However, switching to a water meter may cut the amount you spend.

The amount you pay for your water is based on the 'rateable value' of a property rather than your actual use. So even if you only use a little water, if you live in a large house, you may be spending a small fortune!

The general rule is that if there are more bedrooms in your home than people then you may save by having a water meter installed. What's more, it's free to switch

But remember that once you switch to a meter, you only have a 12-month window to switch back again.

More essential budgeting tips:
Big budget month day one: how to plan a budget
Big budget month day two: looking at your spending
Big budget month day three: setting your goals
Big budget month day four: make sure you're not missing out on money
Big budget month day five: cut your transport costs
Big budget month day six: save money on food
Big budget month day seven: save money on your energy