If you're feeling pretty broke it's time to tighten those purse strings, so check out these tips to get inspired.
It seems that even with all of the excitement of the yuletide festivities, many of us are feeling a little concerned at the moment. And this isn't just due to over-spending on Christmas goodies -- many of us are really starting to feel the bite of rising fuel prices, monthly mortgage payments and other increasing costs of living. What's more, we are sure to have more to come as the various councils will be announcing how much our council tax bills are due to rise by soon.
So what can we do? Well, you can stick your head in the sand and pretend nothing's happened. Or you can be a true Fool and start taking action now. How? Well it's easy -- we can effectively put more money into our pockets by cutting back on our expenditure.
If you can shave just £50 off your monthly expenses that's the equivalent of giving yourself a net pay rise of £600 per year -- not bad eh? And most of us can save far more than £50. Want to give it a go? Then try out these tips and see how much you can save.
1. Stick to a budget..
Well, for a start if you don't have the money, you can't spend it. So your first job is to track your expenditure for a week in a spending diary (find a little notebook to keep in your bag/pocket). Note down every single expense in it, however paltry and take a look at it after 7 days. Work out what was a necessity and add up their costs (put a line through the frivolous expenses).
By withdrawing only the cash you need at the start of the week (leave your cards at home!) you should now try to stick to this budget -- and you'll be amazed how much you can save by not constantly taking out £20 from an obliging ATM.
2. Kill those bills...
This is one I always go on about, but that's because it's one of the best ways to save money. Take a look at that bank statement and note down all of the direct debits and standing orders you have listed. Now work out:
(i)Which are vital (council tax, mortgage/rent etc)
(ii)Which are not (magazine subscriptions, gym membership, Sky TV etc)
Look at the second list and ask yourself which ones you could honestly live without. For example, if you haven't been to the gym for three months, is it really worth forking out £50 each month for membership? Could you motivate yourself to get up early for a run in the park three times a week and save that cash instead?
And while I'm mentioning direct debits, make sure you check for the third category: debits for services you thought you'd cancelled but are still paying for! A surprising number of us are paying for memberships for things we no longer receive, so cancel them (and write to the organisation for a refund) immediately.
3. Reduce those debits...
Now you need to look at the debits that remain on your account and ask yourself if you can reduce them. So check when the discount period on your mortgage will expire -- if it's within three months start looking for a cheaper deal now (if not, make a note of when to start).
If you haven't changed gas or electricity supplier for a while, use a comparison website and see how much you could save. If you have more bedrooms than people in your home you could probably save by switching to a water meter. And could you save by switching to a cheaper mobile phone tariff (or even pay as you go)?
4. Save energy (and reduce those bills)..
Now you've limited yourself to only spending money on essentials and spruced up your direct debits, why not see how much more you could save? Follow the tips in Ten ways to save energy and you'll shave pounds off those energy bills.
5. Sell that clutter...
If you've got cupboards full of gadgets you'll never use, or unwanted gifts, why not send them to a happier home -- and make some cash at the same time? Load up the car and do a car boot sale, or sell them on an auction site. If you've got a lot of baby equipment you'll never use again or children's toys, check out your local NCT group -- they often hold Nearly New sales so you could free up some space, and make some cash, too.
6. Don't pay, if you can get it for free....
And finally, one trap we all fall into is that of complacency. For instance, if you sign up for a service, how often do you check it to ensure you're still getting the best value for money?
But providers are generally making services better all the time -- which is great for new customers, but often means the old ones can be forgotten about. Well until now!
For example, if you're a BT customer you may well be paying £1.75 each month for its Caller Display service. But did you realise, by signing up for BT's free Privacy at Home package you would get Caller Display for free?
What's more, you can currently sign up to its BT Together Option 2 package and get free UK evening and weekend calls for a year - you simply pay the line rental. You do need to sign up for a minimum of 18 months for the deal, but it's still a pretty good deal.
What's more, if you haven't investigated your broadband service for a while you could find you could get a better deal. Many providers have increased the speed of their service for the same price, so make sure you're still getting the best deal possible.
The quickest way to make sure you're still getting the best deal or service possible is to keep an eye on your provider's website. Some offers and deals will be for new customers only, but the majority should be for anyone. Besides, a quick phone call to ask if loyal customers can get the same offers as new ones can often give great results.
So don't despair when you see how little you have left over at the end of the month. Make it your mission to do something about it, and work out how you can spend less cash.