News details
Small changes can mean big savings
1/18/2010
Alok offers tips on how making a few small changes to your lifestyle can save you money this year.
We’re all feeling the January blues at the moment. Christmas expenses are looming over us, we’ve had some bad weather and payday seems a long way off. However, the good news is that by making some small adjustments to your lifestyle, you can save a lot of money in 2010.
1 – Pay gas and electric bills by direct debit
If you choose to pay your gas and electric bills by direct debit, you can get a substantial discount. Companies such as Scottish Power are offering cheaper rates to customers who take their own meter readings and pay by direct debit. It’s quick, hassle-free, and saves you money.
2 - Compare insurance costs
Make sure you get the best deals on your car, home and building insurance by visiting price comparison websites such as www.gocompare.com and www.moneysupermarket.com where you can compare the best quotes from all of the leading suppliers at a glance and make significant savings.
3 - Use 0% balance transfer deals
If the financial stress of 2009 has left you with huge credit card bills, spend some time researching 0% balance transfer deals. You can compare credit cards online to find the best deal for you and save hundreds of pounds in interest payments. Virgin has a great deal at the moment, offering 0% on balance transfers for 16 months.
4 – Cut up credit cards
If you’re in danger of exceeding your credit limit, avoid overspending on your credit cards by simply cutting them up. Make an appointment with an Independent Financial Adviser who will be able to help you manage your debts and work out a suitable financial plan for you for the year.
5 - Be inventive with your shopping
Shopping online is cheaper than visiting the high street. Schemes such as www.uk.freecycle.org are worth taking a look at - it may be the case that someone in your area may have the item you need for free. There are also bargains to be found in charity shops and you’ll be helping a good cause.
6 – Have a January clearout
Gold is currently at the highest value it has ever been, so look in your jewellery box at home and see if you can exchange some gold for cash. This is also a great time to take unwanted presents or old belongings to a car boot sale where you can test your selling skills!
7 – Consider premium bonds
Premium Bonds are an investment where, instead of interest payments, investors can win tax-free prizes. Investors receive a number for each £1 invested. The minimum purchase is £100 (or £50 when you buy by monthly standing order) and you can hold up to £30,000.
This provides a fun yet serious way of parking your money, with the peace of mind knowing your original investment is 100% secure as it is backed by the government. You can invest in a premium bond online, over the phone or at the post office.
8 – Let the taxman pay part of your pension
Maximising your pension contributions for each tax year can save you money thanks to the generous tax relief available. Anyone, irrespective of earnings and including retired people and children, is eligible to pay up to £3600 per year gross into a personal/stakeholder pension. This would cost them just £2880 per year because they will receive 20% tax relief at source and higher rate tax payers are eligible to receive up to 40% in tax relief (subject to earnings criteria).
9 – Save money whilst on holiday
Banks will often charge you when you use your credit or debit card abroad, meaning that you end up paying more than necessary on your trip. However, with a bit of research into the best deals, you can avoid these charges - the Nationwide Flex account does not charge you when you use your card abroad.
10 - Get the most from savings
If you have money sitting in a bank or building society account, you may not be getting the best return on your savings. By switching to a Cash ISA, where you can save up to £3600 per year totally tax free – or £5100 for over 50s - your savings will reap more rewards, typically 2-3% gross interest. Those below 50 can pay £3600 until April, when this will also rise to £5100.
An Independent Financial Adviser can assess your individual financial circumstances and advise you about saving money throughout 2010.
For further information on how Alok can help you with your personal or business planning needs, contact Dhanda Financial, 52 Dean Street, Newcastle upon Tyne, NE1 1PG, telephone 0191 255 8960 or email alok@dhandafinancial.com
