Ten easy ways to grab extra cash

With times tough and money tight, these ten simple steps will boost your bank balance...

I’m always on the lookout for ways to make a bit of extra cash. Then again, what I really like is finding ‘gains without pain’ -- simple means of generating more money with little effort.

Ideally, what I want is something that takes under half an hour to do, but has a decent payoff of, say, £25+ a year. Here are ten suggestions to help you to pick up more pounds:

1.    Check your utility bills

It’s been a cruel winter -- and it got a whole lot crueller when I received my latest gas bill, which hit an all-time high. Although my gas bill was a shocker, my monthly direct debits to my electricity supplier had left me strongly in credit.

A quick call to my energy supplier led to almost £150 being credited to my current account within days. Hence, check your gas and electricity bills, submit your latest meter readings, and you too could get a refund of any surplus credit.

2.    Check your credit-card statements

Early in the Nineties, I built up a mountain of debt, ending up with about 13 credit cards. Although I closed most of these by 1999, I continued to be a ‘card sharp, moving from one card to another in search of the best deals.

Recently, I went through my statements for all my current-yet-dormant credit cards. In several cases, I found small credit balances, either from estimating and slightly overpaying final bills, or from cashback rewards being credit to my account.

However, one card -- unused since last spring -- had a credit balance of nearly £100, so I hurriedly requested a refund of this balance. Oops, that’ll teach me to give a lender an interest-free loan.

3.    Keep your eyes peeled

This tips works best if you’re sharp-eyed or take lots of walks with small children, as I do. Slightly stooped with two little hands in mine, I find myself scanning the ground as we walk to school, the shops, etc. My bespectacled gaze is helped by my little boy, who is very eagle-eyed and observant. Between us, I reckon that we find up to £5 a month -- literally, money left lying around.

4.    Boost your savings rate

Two years ago, in March 2008, the Bank of England’s base rate was 5.25% a year. Since 5 March 2009, it’s remained at an all-time low of 0.5%.

Of course, a plunging base rate has also lead to a dramatic decline in the interest rates paid by savings accounts. Today, millions of savers have money in pathetic accounts earning below 0.5% a year. Indeed, after tax and inflation, these savers are losing money.

Therefore, don’t sit back and watch your cash fade away. Give your money a shot in the arm by transferring it to a table-topping Best Buy savings account. By doing so, you could increase your savings interest tenfold or more...

5.    Get £100 for switching banks

How many of us moan about the charges, interest rates and service provided by our current accounts, yet do nothing about it?

The only way to tackle an inferior bank account is to ditch and switch. By moving to a new provider, you could earn more credit interest, pay less when you’re overdrawn, and avoid those sky-high fees and borrowing rates. Also, banks will pay for your custom: First Direct offers a £100 bung to new customers -- as did Alliance & Leicester, although its latest campaign ended last Sunday, but I suspect it’ll return...

6.    Shop using a cashback credit card

I’m a firm believer in being rewarded for my loyalty. That’s why I’m a big fan of cashback credit cards, which provide me with a yearly refund of a proportion of my spending.

Over the years, I’ve used a deck of different cashback credit card, but my current favourite is my new American Express Platinum card. In the first three months, it pays 5% cashback, with a maximum payout of £100. Thereafter, I can earn up to 1.25% cashback with no upper limit -- which could be £200 in a high-spending year.

By the way, always pay off your cashback credit-card bill in full. Otherwise, what you pay in interest will massively outweigh the cashback reward.

Related goal

Make some extra money

It’s easy to increase your income if you know how! Check out these innovative money-making tips to find out more...

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7.    Earn cashback as you spend

When shopping online, be sure to take full advantage of cashback websites. By shopping via the likes of Quidco, TopCashBack, Cashback Kings and GreasyPalm, you can earn cash rewards by shopping with hundreds of different retailers.

Usually, this cashback is around 2% of your spending, but special deals can boost this to 10% to 20% at certain retailers. I’m looking forward to a cashback payout of over £30 at the end of this month, which is money for old rope.

8.    Make full use your loyalty cards

With so many of us shopping online, it’s easy to forget the rewards on offer from old-school loyalty cards. However, the rewards points offered by Nectar and Tesco Clubcard can really stack up, especially if you exchange them for vouchers to use with loyalty partners.

For example, next month, my family and I are off to Legoland Windsor. The usual price for two adults and two children would be a whopping £132. With Clubcard vouchers, we pay just £40, which is a saving of £92 (70% off). Also, I buy items from Amazon via the Nectar website in order to collect one point per pound spent.

So, keep your loyalty cards at the front of your wallet or purse and use them at every available opportunity. If you’ve lost your card, order a replacement and claim your dormant points.

9.    Find long-lost accounts

Recently, I ordered a copy of my credit report in order to make sure that it was all in order and there were no signs of fishy activity such as identity fraud. Everything was hunky-dory, but I spotted the details of a savings account which had been dormant for a long while.

On checking, I discovered that some interest had been credited to the account after I cleared in out and left a nil balance. That interest is now earning me a little bit more interest in my savings account.

10. Claim the benefits you’re due

Finally, there is a whole host of state benefits and tax credits available to families with children, those who are unemployed, sick or disabled, people on low incomes, and pensioners.

The best way to check which you’re entitled to is to visit the free, independent EntitledTo website, or the benefits adviser at the official DirectGov site.

Get help from lovemoney.com

If you need help to save and make extra cash, then lovemoney.com is here to help.

First, adopt this goal: Make some extra money.

Next, watch this video of Ed Bowsher explaining how to make extra cash.

Also, pop over to Q&A to ask other lovemoney.com members for their best hints and tips on making and saving money.

More: Stick your cash in a Best Buy savings account | Five ways to save with make do and mend | How to save and make money in the garden