How you can save money in the New Year

At this time of year, with 2011 almost upon us, there will be many people working out what they want to do for their New Year’s resolution. Of course, there are some resolutions that are more common than others, and this includes saving money over the coming year. With finances tight for many people it is likely that a huge number of people will be making a promise to save money next year.

However, making a resolution to save money is easy enough but actually saving money is a different matter altogether. You need to be able to find the means to save cash, and this involves going through your income and outgoings to see where cutbacks can be made.

Often, people overlook the fact that they can quite easily cut back on the cost of their bills and shopping simply by making a few changes. With so many people in debt now officials are urging consumers to focus on putting any spare money towards paying off debts, and by cutting back on the amount that you spend you can get more disposable cash to put towards things like credit cards, catalogues, store cards, and other types of debt.

One thing that is well worth doing in the New Year is checking whether you can find better deals on services such as insurance, energy bills, and broadband. By seeking out more competitive deals you could save a fair amount of cash each month, which could be put to better use clearing off your debts – or if you are lucky enough not to have any debt to put into savings for emergencies or for a rainy day.

Going online and comparing prices of services such as these couldn’t be easier these days thanks to the Internet, and you will find that switching involves nothing more than the click of a button and maybe a phone call. Competition in the market means that you could get some great deals on your services, and you can compare them with ease when you go online.

Also, it is worth taking a look at your shopping habits to see if you can cut back on the amount that you spend. Resist the temptation to go shopping without a list, as otherwise you end up buying stuff you didn’t really need, and go a little further afield to find discount supermarkets that offer a range of goods at far lower prices than the supermarket giants. Also, consider shopping online – although there is a delivery charge you are less likely to start buying things randomly even though you don’t need them just because they are displayed temptingly in front of you.

Tags: store cards, disposable cash, outgoings, Business Finance, money, savings, saving, New Year

Consumers saving more and using credit cards less

Recent reports have shown that consumers are getting far savvier about their finances, with many now choosing to save money and shore up their finances rather than splashing the cash on large purchases or spending ruthlessly on their credit cards. This indicates that consumers have become more accustomed to the fact that they need to save money to help them through in the current climate and that they have to be more mindful about their spending.

Prior to the global credit crisis and the recession many of those that are now saving their money may not have thought twice about using the money to purchase big ticket items, splash out on luxuries, and spend on items that they didn’t really need. Likewise, many may not have given a second thought before going out armed with their credit card and treating themselves to pricey luxuries.

However, over the past couple of years many people have realised how important it is to have money put aside to help them through in the event of a financial emergency or if they lose their jobs. With this in mind more and more people are putting money aside and avoiding spending unnecessarily. According to reports a rising number of people are also trying to pay off their debt so that they can be more financially secure in the future.

A spokesperson from ING Direct, which released the report, said that many people were now trying to get over the debt that they accrued over the Christmas period and were focussing on saving or repaying their debt.

He said: “We are also seeing a trend, which is getting stronger and stronger, that people start saving before they make big purchases and use their credit cards less and less.”

Tags: saving, credit, finance, spending, debt

Be savvy when you shop online

These days a rising number of people are doing their shopping online, with many different people purchasing their groceries and household goods via the Internet. With so many shoppers trying to cope with various other commitments such as work and family getting the time to go to the supermarket and queue up can be very difficult. However, the Internet has given busy people an opportunity to get their shopping from the comfort of their own homes with the touch of a button and get it all conveniently delivered to the door.

There are a number of benefits available for those that do their grocery shop online. The first is that they can do their shop at any time of the day or night without even having to leave their home, providing total convenience. The second is that they can get their groceries delivered conveniently to the door at a time to suit. Finally, there is plenty of choice available online, so shoppers can quickly find what they want without having to wander around the supermarket scouring the shelves.

There are also some other very important benefit to doing grocery shopping online, and one of the most important is that potentially shoppers could make a fairly sizeable saving compared to going to the supermarket to make their purchases. There are a number of ways in which consumers may be able to save money when shopping online.

Firstly, those that shop online are less likely to be without a list or be shopping on an empty stomach, and both of these things can increase the likelihood of impulse shopping, which can really add to the final bill. Another thing to bear in mind is that there are often special offers for online customers, which can be taken advantage off to boost savings even further.

Whilst there is generally a delivery charge to have your shopping brought to the doorstep the time of day that delivery is arranged for can affect the price. Shoppers should therefore aim for off peak hours if possible so that the delivery charge is lower.

Finally, shoppers can use sites such as mysupermarket.com where it is possible to do your shopping online and then see which of the major supermarkets offers you the shop for the least amount of money, which means even greater savings for the shopper. The site also allows shoppers to switch branded items to cheaper one with the click of a button, making this a fast and easy way to make savings.

Tags: shopping, online shopping, likelihood, shopping online, saving, Retailing

Cutting your energy bills to save money

We have all had to make cutbacks over the past eighteen months or so in order to try and stay afloat financially, particularly with the global financial crisis and the recession still taking their toll. Read more

Tags: saving, provider, electricity, huge outgoings, energy costs, lot

Save money by cutting insurance costs

As most of us know the recession is underway, and with finances already very tight for most this has resulted in the financial situations of many households going from bad to worse. Read more

Tags: saving, insurance cover, insurance costs, cases insurance firms, difficult times, home insurance, certain ways

Savers should act quickly to secure good interest rate on savings

According to many industry officials savers in the UK need to take action as soon as possible in order to secure a good rate of interest on their savings, as – whilst interest rates on many savings accounts is high at present – many lenders may start cutting savings interest rates as a result of anticipated cuts in the Bank of England base rate. Read more

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Property falls out of favour with savers

After years of seeing property prices rocket, people are finally becoming weary of putting their hard-earned cash into homes and may begin to stash money away in savings accounts instead, an expert has indicated.

Donna Bradshaw, an IFA and financial planning strategist, has said that following a period when people became used to spending, there may now be “a turn around back to saving again”.

She said that in the past, the country’s “obsession with property” has meant that many people have used their houses as “a high street bank“.

However, with the credit crunch hitting hard, Ms Bradshaw said: “I think we’re going to see a shift back to saving.”

Some people already appear to be stashing their cash away in a safe pace to earn interest, as the Building Societies Association recently reported the highest ever monthly inflow to building society cash ISAs in April, bringing the total put in societies’ savings accounts to £1.8 billion.

Tags: obsession, financial planning, indicated.donna bradshaw, building societies association, Donna Bradshaw, Financial economics

Pensioners likely to ‘rely more on savings’

Pensioners are expected to increasingly rely on their savings as their as pensions are gradually offering lower payouts, the director of Churchouse Financial Planning has said.

Keith Churchouse said that it is likely to become more common for people to dip into their savings as they become older and retire as they will probably be unable to rely on their pensions.

He noted that some people are hesitant about paying money into a pension scheme and those who choose not to have a personal account may find themselves dependent on the government in the future.

Mr Churchouse went on to say: “However, I don’t know whether the government has the view that if you actively opt out of the scheme, there is going to be a caveat to say that you can’t pop back to the state later.”

According to the Fidelity Retirement Index, the average household can expect to live off 42 per cent of their current income when they stop working full-time, which is far below the two-thirds that the Pensions Commission is proposing.

Tags: Fidelity Retirement Index, cent, Financial services, saving, Household, Pension

Calls for saving scheme to be extended

The expansion of a government scheme for matching the amount of money saved by lower-income Britons could provide a real boost to the nation’s savings, it has been claimed.

The Tax Incentivised Savings Association (TISA) said that the Saving Gateway initiative, which was introduced to encourage saving in households that are not engaged with mainstream financial services, could provide valuable incentives if it is rolled out on a national level.

Tony Vine-Lott, director general of TISA, said that Saving Gateway is “the next logical step” on a path begun by individual savings accounts and child trust funds.

“By targeting those who aren’t saving and providing new, simple incentives, we believe that we can realise nearly two million new savers,” he commented.

TISA said that it has been taking “a leading role” to help the government create and trial the scheme.

The government began piloting Saving Gateway in 2001.

Tags: saving, logical step, child, Lisp, Lott, lower-income britons, Financial services, mainstream financial services

Start saving if you are under forty

According to a recent report younger consumers in their twenties and thirties have become so reliant on credit that many are simply spending all of their money on frivolous spending or repaying debt rather than putting money away for their future.

Twenty and thirty-somethings are now being urged to put money aside into savings or investment for their future to reduce the risk of being left without an adequate retirement fund when they reach retirement age.

The government’s state pension has declined over the years, and with increased life expectancy and higher living costs to also consider younger consumers now need to start thinking about their future in terms of how they will manage financially.

Historically, most people in their twenties and thirties tend not to think much about mortgage provisions, but this has become an increasingly important consideration for the younger generation if they wish to enjoy a certain standard of living when they come to retirement age.

One official advised younger consumers to start putting money into savings or an investment fund as early on as possible to ensure that they had a tidy sum available for when they retire. Increased life expectancy means that consumers must put aside more money to cover the cost of living after retirement, and this has made it even more important for younger consumers to start putting money aside as early as possible.

Consumers in their twenties and thirties are advised to cut back on their frivolous spending, try and avoid getting into further debt, and start putting money aside on a regular basis. Many younger people are wasting a small chunk of their income each month on repayment of interest on their debts, all of which could be used towards saving for the future.

Tom Smith
5th November 2007

Tags: save, saving, salary, interest, future, retirement, wages, Banking

Child trust funds proving popular

More than 2.6 million children in the UK now hold a child trust fund (CTF) with the scheme proving popular among parents, according to the economic secretary.

Ed Balls said the results were “encouraging” and pointed out that around three quarters of the accounts had been opened up by parents with little prompting from the government, showing that they are looking after the financial future of their children.

Mr Balls said that HM Revenue & Customs was planning to remind all new parents of the opportunity to set up a CTF within their child’s first eight months, if parents have not done it themselves.

“I want to encourage parents, grandparents and whole families to use the Child Trust Fund not just as a saving tool but as a way of teaching children about money and savings,” the economic secretary said.

CTFs were introduced in 2002 as a savings tool for all children born after September 1st of that year.

The government provides a £250 voucher to start off the fund and then, when the child reaches seven, adds a further £250 on top.

Tags: new parents, child, fund, CTFs, voucher, savings tool, saving, scheme

Savings Accounts – Are They Worth It?

It wasn’t like that in my day

It’s an often heard phrase usually uttered by a disgruntled and crumpled pensioner about some aspect of modern life. Well, thank goodness it’s not like it used to be as far as savings bank accounts are concerned. They used to be pointless; today they are a little different. Read more

Tags: Wise words, bank account, interest rates, Savings and loan association, leicester, savings accounts, recession, saving