Life hacks - saving money
I was brought up by accountants. By that I mean my parents were either full accountants or training. Even my brother has gone into accountancy and, while it was never a career path for me, I have learned a few things about savings and saving money. Here are a few of my tips and tricks (although this is my no means definitive).
Savings accounts:
There are loads out there and this can seem like a daunting thing. Use a comparison site such as Money Supermarket or Compare the Market (other comparison sites are available...search online for them first) to save time. If you have more time then make a list of banks you trust and go on their own webpages for more information.
Often existing customers get preferential rates so if you have a current account see what savings that provider will do for you too. Remember though that most rates only last a year and then drop quite low so it might be worth having a look after a year to see what else is available.
The best rates belong to fixed rate savings accounts but you are usually tied in to the account for a fixed amount of time (e.g. 2 or 5 years are common ones). This means you can pay money in during this time but you can't take money out. If you have something that you need to save for and you know it will take you a couple of years to get the money together then this might be a good option for you. However, if you use savings the way I do and you want it for that rainy day you never know when that rainy day will come. In this case an instant access savings account will be your best option, though they have a lower interest rate than fixed. Most are tax free, though there may be limits on this so check the conditions before you sign up. Really you need to shop around and have an idea in mind of what you want your money to do for you.
Vouchers:
You can find these anywhere. Often they come in papers, attached to products you already bought and on fliers. These can save you money and get you some good deals when you go shopping.
I include store cards in these (e.g. Nectar or Tesco Clubcard, though there are loads out there). I know some people are a little nervous of them and think that they steal your details and manipulate you through keeping a record of your spending habits but I think they can be useful. For example, I have been able to have cheap to free Christmases in the past just by saving up all my Nectar points all year. Also, remember that you can collect points online and it is worth checking with your points card provider where you can collect and spend your points to make it most worthwhile.
Also, some supermarkets give you vouchers to gain additional points or to have cash off your next shop. This is the constant battle they have with each other to make people choose them over their rivals and this can really pay off too.
Credit Cards:
Be careful with this one. I only have a credit card for emergencies. The card I have chosen also happens to be a store card and so when I use it there I get points which add up to vouchers to spend in store and online. Make sure you are in a position to meet the minimum spend each month too and don't rely on the credit cards. The worst thing you can do is pay one card off with another. Like I say, mine is mostly for those emergencies or if it gets tight at the end of the month. The benefits can be the points as I have just mentioned and also it can improve your credit rating if you use them wisely and this can help you when you want to get things like mortgages.
Shopping:
Shop around if you can. It might seem to take more time but you can get some real bargins. I never buy my cleaning stuff in a major supermarket because I can get the same brand name products in pound stores. Also it might pay to get frozen food and stock up or get frozen from one store, fresh from another. If you have a local market you might be able to get good quality produce from there for less cost too. Supermarkets make it very convenient to go to one place for everything but this isn't the most cost effective way to shop.
Current provider discounts:
This could apply to home/car insurance, mobile, internet, utilities...absolutely anything. Shop around and find out if you really have the best deal. If you don't then phone up your current provider and tell them the deal you found and see if they can at least match it. If they say they can't then you know you have found a better deal and you can switch. If they say they can then you can stick and you have saved yourself some cash.
Do your homework:
Comparison sites do work when you have little time but remember that not all providers are on these. Often the comparison sites have commission too so it might be worth finding providers there and then going to their site direct. Sometimes you do get a good deal exclusive to that comparison site though so timing is everything.
Online surveys:
If you have time then get on some online survey sites. There are loads out there but some of the popular ones are YouGov and i-say. They give you cash or vouchers for answering surveys. However, you must be warned that this can be time consuming as you have to do a lot of surveys (which can be quite long) to build up enough points to get the cash or vouchers.
Savings accounts:
There are loads out there and this can seem like a daunting thing. Use a comparison site such as Money Supermarket or Compare the Market (other comparison sites are available...search online for them first) to save time. If you have more time then make a list of banks you trust and go on their own webpages for more information.
Often existing customers get preferential rates so if you have a current account see what savings that provider will do for you too. Remember though that most rates only last a year and then drop quite low so it might be worth having a look after a year to see what else is available.
The best rates belong to fixed rate savings accounts but you are usually tied in to the account for a fixed amount of time (e.g. 2 or 5 years are common ones). This means you can pay money in during this time but you can't take money out. If you have something that you need to save for and you know it will take you a couple of years to get the money together then this might be a good option for you. However, if you use savings the way I do and you want it for that rainy day you never know when that rainy day will come. In this case an instant access savings account will be your best option, though they have a lower interest rate than fixed. Most are tax free, though there may be limits on this so check the conditions before you sign up. Really you need to shop around and have an idea in mind of what you want your money to do for you.
Vouchers:
You can find these anywhere. Often they come in papers, attached to products you already bought and on fliers. These can save you money and get you some good deals when you go shopping.
I include store cards in these (e.g. Nectar or Tesco Clubcard, though there are loads out there). I know some people are a little nervous of them and think that they steal your details and manipulate you through keeping a record of your spending habits but I think they can be useful. For example, I have been able to have cheap to free Christmases in the past just by saving up all my Nectar points all year. Also, remember that you can collect points online and it is worth checking with your points card provider where you can collect and spend your points to make it most worthwhile.
Also, some supermarkets give you vouchers to gain additional points or to have cash off your next shop. This is the constant battle they have with each other to make people choose them over their rivals and this can really pay off too.
Credit Cards:
Be careful with this one. I only have a credit card for emergencies. The card I have chosen also happens to be a store card and so when I use it there I get points which add up to vouchers to spend in store and online. Make sure you are in a position to meet the minimum spend each month too and don't rely on the credit cards. The worst thing you can do is pay one card off with another. Like I say, mine is mostly for those emergencies or if it gets tight at the end of the month. The benefits can be the points as I have just mentioned and also it can improve your credit rating if you use them wisely and this can help you when you want to get things like mortgages.
Shopping:
Shop around if you can. It might seem to take more time but you can get some real bargins. I never buy my cleaning stuff in a major supermarket because I can get the same brand name products in pound stores. Also it might pay to get frozen food and stock up or get frozen from one store, fresh from another. If you have a local market you might be able to get good quality produce from there for less cost too. Supermarkets make it very convenient to go to one place for everything but this isn't the most cost effective way to shop.
Current provider discounts:
This could apply to home/car insurance, mobile, internet, utilities...absolutely anything. Shop around and find out if you really have the best deal. If you don't then phone up your current provider and tell them the deal you found and see if they can at least match it. If they say they can't then you know you have found a better deal and you can switch. If they say they can then you can stick and you have saved yourself some cash.
Do your homework:
Comparison sites do work when you have little time but remember that not all providers are on these. Often the comparison sites have commission too so it might be worth finding providers there and then going to their site direct. Sometimes you do get a good deal exclusive to that comparison site though so timing is everything.
Online surveys:
If you have time then get on some online survey sites. There are loads out there but some of the popular ones are YouGov and i-say. They give you cash or vouchers for answering surveys. However, you must be warned that this can be time consuming as you have to do a lot of surveys (which can be quite long) to build up enough points to get the cash or vouchers.
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