The last 5 years have been tough financially – but things could get tougher.
Here’s a few sound bites you may have heard recently
Sterling is falling
The UK’s credit rating has been downgraded from its prestigious ‘AAA’ rating, to ‘Aa1’
Petrol prices continue to rise
Inflation is going to increase at some point
The cost of food is rising
So if you are feeling the squeeze, here are few tips to help you get more out of your money.
1. Understand your finances
It’s quite simple – you can either do it on a computer or on a piece of paper. Work out exactly what you are spending each month and on what. Start with the main items, such as mortgage costs, gas, electricity, water, Sky, Broadband etc. And don’t forget to add in the cost of your monthly food bill and if you have a discretionary spend budget.
2. Decide what to stop spending your money on
Once you have worked out what you are spending your money on, get rid of anything that you don’t really need. That monthly gym membership that you never use can be stopped. Or magazine subscriptions that you never get round to reading.
3. Review your energy bills
Energy bills have risen considerably over the last 5 years, so savings can be made by shopping around for better priced gas, electricity and phones. There are a number of websites that can help you compare tariffs and there are still huge numbers of people who have never reviewed the costs and are missing out on savings.
4. Petrol
The price of fuel varies dramatically from garage to garage and can be very expensive on or near motorways. Some of the supermarkets offer discount vouchers when you are shopping and often the cheapest fuel can be found at supermarket garages. So make sure you fill up at the lowest price.
5. Be smart at the supermarket
Try not to shop when you’re hungry as this is a sure way to spend more than you really need to. And always go with a shopping list, how many times have you got back home and find you have bought something you r already have plenty supplies of.
Visit www.mysupermarket.co.uk to compare the cost of your shopping basket at Waitrose, Ocado, Asda, Sainsbury’s and Tesco.
6. Cut down on your travel costs
Commuting can be very expensive, so look at alternative ways of getting about.
The most obvious way to reduce the cost is to use a different mode of transport. Could you cycle to work or use a bike for some journeys? Could you car share with another member of your family? Could you go walk when out and about locally?
7. Get a better return on your savings account
Many savings account rates are very low at best, but you can get a better return by looking online as many internet accounts pay better interest rates. Check out www.moneyextra.com for current rates.
Consider putting your savings into a Cash ISA as you will not be taxed on the interest you earn.
8. Get the best annuity rate for your pension
To get the best annuity rate for your pension, it’s essential to shop around for the best rate. The difference between the best rates and your current pension provider can be as much as 30%. It can be complicated as there are many options to choose from, so check out your local financial adviser if you are not sure what is best for.
The above article should not be construed as advice and should not be seen as such. Always seek professional financial advice before making any decisions. If you require investment advice for future planning please contact us as Midlands Investment Agency or call us on 01902 742221.
