Finding it tough to make ends meet? Check out these top tips from Paola Easton from Birmingham City Church.
Small steps stack up
Before you tackle saving money, you first need to know where it goes each month. You can only improve your situation if you know what needs to change.
It’s relatively easy to write a list of bills that are paid by direct debit and are fixed, it’s all the other things that are hard to quantify. You need to keep a record of everything you spend. This will reveal exactly where your money is going. Then set aside time to look at this information and determine what are ‘essential’ items – housing costs, transport to work, utility bills etc – and what are ‘non-essential’ – eating out or going to the cinema.
When looking at how to save money, start with ‘non-essential’ items. You may be spending money on things you no longer use, or you may decide not to eat out so often.
In terms of fixed bills, it may be possible to get the same thing at a much cheaper price, for example by switching suppliers.
Set some spending goals and a budget to achieve them.
Cut everyday costs
One big area of spending is grocery shopping. You can’t avoid it, but you can cut costs. We’re very loyal to big brands, for example, but this can come with a heavy price tag – switching to own brands can make a significant difference.
Beware of bargains too: a deal is only good if you will use it and can afford it. Don’t buy things that spoil because you bought too much.
Bulk-buying saves money and works well for larger families, but if you’re single or a couple, consider sharing a bulk-buy with someone else so you both benefit.
And don’t go grocery shopping when you’re hungry, because you spend much more.
Plan your meals and shop with a list
This saves time, money and prevents waste.
Check your receipts too. We’re used to tapping for contactless payments or paying by direct debit or standing orders, but we don’t always check our payments and bank statements. Are you being overcharged because the price on the shelf is different to that at the till? If you’ve signed up for gym memberships, TV subscriptions, etc, review them periodically and ask if you’re getting the full benefit from them. If not, cancel them!
Energy bills are a hot topic at the moment. It’s easy to get stuck in bad habits and forget how much things cost to run. Small changes like switching off devices instead of leaving them on standby, closing doors and curtains, putting on jumpers instead of T-shirts, etc can add up to significant savings.
Reduce regular outgoings
Most bills tend to be in contracts. Make a note of when they end because, after this, prices often increase automatically. Unfortunately, loyalty is generally penalised and companies rely on people being too busy or reluctant to switch providers.
Most great deals are for new customers only. You have to do some work to make the switch, but you could save hundreds of pounds by doing so.
Mobile phones are one of the biggest expenses that catch us out. You might think an upgrade is free, but don’t forget you’re paying for the ‘free’ handset each month in addition to your SIM allowance. At the end of the contract, switch to a SIM-only deal – this could save you up to
£400 per year if you’re prepared to hold on to your handset for a while.
Some companies offer very good deals if they know you’re leaving. Weigh this up against what other providers are offering. And watch out for the ‘auto renew’ feature many companies use.
Organisations that can help:
● Citizens Advice helps with a range of issues from benefits claims to debt advice and support. Some centres offer face-to-face appointments.
● Christians Against Poverty deals with debt situations and negotiates with companies on your behalf. Many churches have CAP Money Coaches who offer courses on how to maintain healthy budgets.
● Money Saving Expert. This website and weekly emails provides helpful information on all financial topics and is great at explain- ing things simply.
● The Money Course is a great free resource to help get you started with budgeting and taking control of your finances.
