Everyone wants a higher wage, so we've come up with ten tips to increase your income and make it last longer.
One question to which any sane person would reply "Yes, please!" is: "Would you like a higher salary?" After all, there aren't many problems which can't be solved by throwing more money at them, right? So, without further ado, here are ten ways to make your salary stretch further, either by increasing your earnings or reducing your expenses.
1) Grab a bigger pay rise
Although most people just take what they're given when pay rises are handed out, a little forward planning can seriously pump up your pay. To get ahead in the salary stakes, read Get A Bumper Pay Rise This Year and Ten Top Tips To Win A Pay Rise.
2) Bag a better bank account
Last year, I did a money makeover for a couple who didn't keep an eye on their three current accounts. As a result, they clocked up over £700 in overdraft penalties in a single year -- ouch! If you'd like to earn up to fifty times as much interest when your current account is in credit and pay far less (even nothing) when you're overdrawn, read Best Buy Bank Accounts Laid Bare. Remember: ditching your bank and switching to a Best Buy account could leave you hundreds of pounds better off each year.
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3) Capture a cracking credit card
Using the wrong plastic could mean waving goodbye to hundreds of pounds a year in needless interest, or losing out on valuable cashback each year. To avoid paying interest on your credit-card debts, and to learn how to earn up to £2 for every £100 that you spend, read How To Master Your Credit Cards.
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4) Pay more into your pension
Huh? Won't paying more into (or starting a pension) leave you worse off? Not exactly, because you must think of a pension as "deferred pay" -- an income which you don't have now, but you will receive in the future. What's more, contributing to a pension is very tax-efficient, because automatic tax relief turns a contribution of £100 into at least £128.21 on day one. Read more about the joy of pensions in Five Ways To Enhance Your Pension and Ten Things To Know About Pensions.
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5) Kill your tax bill
According to this article, the average British worker spent the first 153 days of this year working for the taxman, which works out at three days in every seven. If you'd like to give much less to Gordon Brown every year, then read Stop Paying Too Much Tax!
6) Pick a cheaper personal loan
Choosing the wrong personal loan could mean paying £100+ too much for every £1,000 borrowed. With over a hundred different loans to choose from, it's not easy to find the best deal, but this guide to picking the perfect personal loan will turn you into a brainier borrower within minutes!
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7) Invest in your company's shares
If you're employed by a private or stock market-listed company (in other words, you're not a public-sector worker, self-employed or a sole trader), then you may be able to enjoy superior investment returns by investing in your firm's shares. Investing in one particular savings scheme (Save As You Earn) is a bit like placing a bet on a horse after the race has finished -- you can't lose! Learn more about employee share plans in Your Boss Could Make You A Millionaire!
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8) Reduce your mortgage repayments
By the end of May, UK homeowners owed a whopping £1,007 billion to mortgage lenders. Across a total of 11.6 million mortgages, this comes to an average of £87,000 per home loan. For recent and first-time buyers, this figure is far higher -- well into six figures.
I could write two thousand words or so spelling out how to find marvellous mortgages, but there's no point. My advice is simplicity itself: ask a no-fee mortgage broker to search the whole market (over 8,500 loans) to find you the best home loan. My favourite firm -- which I recommend to all of my friends and family -- is the award-winning London & Country Mortgages. Let it do all of the hard work, while you save hundreds (even thousands) of pounds a year in interest!
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9) Get cheaper childcare
My second-biggest household expense is childcare, which gobbles up about around £9,000 a year of take-home pay. However, my wife's employer provides her with childcare vouchers worth £55 a week (£2,860 a year) in return for her sacrificing the same sum from her salary. The good news is that childcare vouchers are free of income tax and National Insurance contributions, leaving Mrs D an impressive £1,173 a year better off. This is an employee benefit worth grabbing with both hands!
10) Stimulate your savings
If you manage your money well (and I'm only talking about an hour or so each month), then you should have a few quid left over before the next payday. Naturally, it's important to make your money work hard by finding the best possible home for your spare cash. To learn how to boost the returns from your savings and earn tax-free interest, read Your Ultimate Guide To Saving.
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