Finance
Money saving tips The last year will be remembered for many things, but it won’t go down in history as the most prosperous year for personal finances. With the New Year just around the corner, here are some financial resolutions to help make the most of your cash.
Haggle for broadband, insurance and mobile phone deals
You can simply be saving hundreds of pounds by haggling for your services like broadband and insurance. We recently found the average annual saving made on telecom bills is £156. Before you make the call, quickly make a note of a better deal you’ve seen or spend a few minutes checking a price comparison site. Your current provider is likely to ask you what better deals you’ve seen. Having these details to hand will make them believe you’re prepared to leave, even if you’re not. In most cases, the haggling itself will be quick and easy – no more than a few minutes.
Switch your energy provider
Around 16 million people – over half (58%) of energy customers – are stuck on standard variable tariffs with a ‘Big Six’ provider, the default and usually most expensive tariff. Renters and homeowners with the ‘Big Six’ could save up to £330 a year by moving to the cheapest dual fuel deal on the market this winter. To compare deals visit a comparison site, a transparent and impartial way to compare energy tariffs and find the best gas and electricity supplier.
Keep your travel spending in check
Holidaymakers could save over £100 a week by opting for an overseas spending card or credit card instead of buying currency at the airport. You will find that credit cards or debit cards, such as Halifax Clarity and Metro Bank (credit and debit), or prepaid cards such as Revolut, provide the best value for tourists for a trip within Europe.
48
Savings accounts/ISAs
Take a look at all your savings accounts, ISAs and current accounts. Are they giving you the best return on your money? If not, switch to a better account. If you don’t need instant access to all your savings, consider investing. There is, of course, the risk that your investments will go down as well as up. But in the current market, there’s also a risk of your cash savings being eroded by inflation.
Lifetime ISA
The Lifetime ISA is a new taxfree savings or investments account designed to help under-40s buy their first home or save for retirement, where you can earn up to £32,000 in free cash from the government.
The Lifetime ISA was available from 6 April 2017.
Debt consolidation
If you’re paying interest on your debt, get it moved to a 0% balance-transfer credit card. Some of these charge 0% interest for up to three years, which means you could be saving hundreds of pounds in interest and start paying off your debts. However, it’s important that you clear the debt before the end of the 0% period to avoid being charged at the standard APR – typically around 18.9%.
Stay in/join your company pension scheme
A pension might be the last thing on your mind if you’re in your 20s. In most cases, the government and your employer contribute to your pension. This is the main reason for people joining company pension schemes – it’s like receiving additional pay from your employer. Contributions aren’t liable for income tax, which is another plus. You can usually take some of your workplace pension as a lump sum when you retire. And you can withdraw 25% of that tax-free.
‘There’s never been a better time to take control of your money.’
Please mention Inside Skegness Magazine when responding to advertisements