May 24, 2007

Save money today

Millions of pounds are wasted each year by the British public, from food rotting in the fridge to paying too much for gas and electricity. Use the following tips to help you save hundreds, if not thousands, of pounds a year.

On food
  • Buy fresh produce from markets not supermarkets, they're almost always cheaper.
  • If you do shop at the supermarket, make a list and stick to it, unless you see food that's massively reduced.
  • Buy cheaper cuts of meat and tenderise them by cooking them more slowly, in casseroles, for example. They're just as nutritious.
  • Make your own sandwiches. The pre-packed sandwich industry is worth £3.3 billion a year! At £2 a sandwich, someone who buys sandwiches for work every day spends more than £40 a month, or almost £500 a year! Home-made sandwiches freeze brilliantly too
  • Don't waste leftover food. Be inventive - you can make very tasty and nourishing meals with it
  • Batch cook. Cooking large amounts of food and freezing it is much more cost effective both in terms of ingredients and the energy used to cook the food
  • Don't buy convenience food. It's usually high in salt, sugar and fat, but it's also very expensive and profitable for the supermarkets that sell it


At home
  • Turn down the thermostat on your central heating by just one degree. This could save you almost ten per cent on your heating bill. And, according to the Environment Agency, over the year, this will save about 240kg of carbon dioxide being released into the atmosphere, equivalent to the amount absorbed by about 80 trees.
  • Check your gas and electricity supplier to see if they're the cheapest. An average house could save more than £100 just by switching supplier.
  • Don't heat rooms you don't use, or heat them gently.
  • Don't fill the kettle full every time. It takes a kilowatt to heat a litre of water by 1°C (1.8°F). Just put the amount of water you need in your kettle.
  • Ensure that you don't have leaky windows and doors.
  • Fit loft insulation - some councils will offer grants in certain circumstances.
  • Don't leave electrical equipment, such as TVs and stereos, on standby. It wastes electricity.
  • Turn off the lights when you leave the room.
  • Fit energy-saving light bulbs, they're kind to the environment and they save you money in the long run.
  • Shower don't bath. It uses a lot less water and therefore saves on heating.
  • Hanging out the washing is free, and saves you using the energy-thirsty tumble dryer.
  • Buy things from charity shops or even shops at the council tip. They cost a fraction of the 'new' price and are often in very good condition. Toddlers soon grow out of their toys, so buying them ones from charity shops is a cheap way to give them an endless supply.


Going out
  • Do you have to take the car? Could you walk?
  • Can you buy it locally? Big shops may be cheaper but they might not be once you've added on petrol, bus and train fares. You'll also be supporting your local community.
  • Happy hour! Many pubs, restaurants and cinemas have discounts for less popular times of the day. Taking advantage of this can save you up to 50 per cent of the cost.
  • Off-peak travel. If you're planning to visit friends by train or bus, check out the savings made by going off-peak. For example, a peak return from Winchester to London Waterloo by train costs more than £35. An off-peak travel card costs just over £22 and if you have a travel card (which costs a one-off £20 a year) it only costs £15.
  • Go 'out' to friends. You can have a great night out by taking a bottle of wine and a takeaway to a friend's house, or have them come to you. You'll save a fortune compared with going to a restaurant.
  • Car share. If you commute to work, or do a school run, team up with neighbours and share the journey.
  • Join a babysitting circle. If you want to leave the children at home, you can save money by joining a group of babysitters. The babysitting is therefore free, you just return the favour. This can save you about £20 for a long evening.
  • Carry out research on the internet for the best bargains, before you go out to buy something. It'll save you the hassle of walking from shop to shop, saving time and petrol, and you'll be more likely to find the cheapest deal.


On finances
  • Consolidate any debts you have. Don't pay ludicrous credit card interest rates. Talk to your bank about getting a loan to pay them off, or switch to a card that offers cheap rates for transferred balances. This can save you hundreds of pounds depending on the size of your debt.
  • Pay all your bills by direct debit. This means they're paid on time, you get used to not having the money and you can budget properly. Often there are discounts for doing so too.
  • Ensure your savings are in the best sort of account. If you don't need to touch it, put it in a higher interest account, although this does mean restrictions on getting your cash.
  • If you can afford it, make use of your ISA allowances. You can save up to £3,000 in cash in any one tax year, and the interest is tax-free. You can also save in shares and life cover with an ISA. Get advice from a financial adviser.
  • Make sure you're getting all the allowances that you're entitled to, including all the child credits if you have children. The Citizens Advice Bureau can help you with this.
  • Save loose change. You'd be amazed how quickly coppers and silver in a piggy bank turn into notes.

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