Going into 2022, many are determined to increase their personal savings but are at a loss with where to start.
There are many ways one can approach saving. Often, people resort to cutting out what they consider unnecessary expenses in an attempt to save as much as possible. These unnecessary expenses are typically things like takeaways, drinks with friends, etc. While this is a great place to start, these drastic lifestyle changes can prove to be unsustainable.
This week, we are presenting our readers with some more realistic personal savings tips. If implemented correctly, these tips could end up significantly reducing your monthly bills.
Move your credit card debt to a 0% balance transfer credit card
For debt with high interest rates, you may want to move it to a credit card deal that offers 0% for balance transfers. For a promotional period, 0% balance credit cards do not charge interest on the debts that are transferred. This will give you an opportunity to pay the money that is owed.
However, once this set period is over, the interest will spike. Therefore, you will need to pay the balance before the promotion expires.
This leads into another tip: make paying off your larger debts a top priority. This will save you from incurring more hefty interest fees over a longer period.
Set up a free overdraft
If it is likely that you will go into an overdraft, consider opening an account with a bank that offers free (no interest) authorised overdrafts.
Decrease your tax bill
So many are unaware of the tax exemptions they may be able to acquire, and how much money they can save by taking advantage of them.
Therefore, it is imperative to ensure you are claiming all the tax relief you are entitled to. For example, there is a marriage allowance, a rent-a-room scheme, and more. Additional reliefs have even been added to the schedule because of the burdens Covid-19 has placed on many. Now, there is a working from home tax relief that people can claim if they were forced to work from home during the pandemic. This is true even for those who worked from home for as little as one day.
Compare prices on regular expenses
Comparing prices on regular expenses, such as insurance, energy and gas, broadband plans, credit cards, and others is so often worthwhile because it can save you money both upfront and money in the long run.
And don’t worry—you won’t need to manually go through the different deals that companies are offering. There is so much technology available to make this process easier. There are many price comparison websites that will do the heavy lifting for you, and they are worth taking the time to use.
Make use of budgeting apps
There are various free apps you can download to your smart device that will help you budget your money. Using a budgeting app will allow you to monitor your accounts and keep track of your spending. Some even allow you to implement weekly, monthly, and annual goals, which can help you save up for a big purchase or achieve your overall saving goals.
Be strategic in your online shopping
With the way data is monetised, it has become the norm for retail companies to track what you view online. By tracking your viewing history, they can monitor your shopping habits. When companies see that someone is viewing a specific item, they will often increase the price. Therefore, you should make it a habit to browse privately. By using incognito mode, you can shop without worrying that the prices of items you are looking at will increase because of your interest in them.
Additionally, there are various discount extensions you can download for your browser, such as Honey, that will automatically apply discount codes when you are checking out. While the discounts typically range from 10-20% off, it is not uncommon to get lucky with a deal. Depending on the codes available, you can save upwards of 40% on the total price of your purchase.
Re-mortgage your home
Because the mortgage market changes and better deals are constantly becoming available, there may be a more economical option out there for you. You don’t even necessarily need to switch lenders. Therefore, you may want to consider examining your situation so that you can determine whether re-mortgaging would save you a notable amount money.
Increase your monthly mortgage payment
Continuing on from the previous tip, increasing your mortgage payments is something you may want to consider. Increasing your monthly payments has the potential to save you thousands in interest. If you have an extra £50 to spare each month, this may be a great option for you.
Consult with an expert about your future personal savings goals
Of course, the last tip is to speak with an advisor. Once you are in an adequate place with your finances, investing may be your next step.
Making your money work for you can be the difference between a sufficient retirement and a comfortable one. Consulting with a qualified expert who knows and understands your circumstances is invaluable in making your hopes for the future a reality.