Money Saving Checklist

Here are a few ways to manage your cash and reduce outgoings:

1 - Budget And Reduce Outgoings

If you have debt problems, the most important step is doing a budget to get a handle on what you spend and future-proof your finances.

Draw up a budget based on a realistic look at your income and outgoings. Consider noting everything you spend for a week or a month, to identify where the money is going.

2 - Do A Money Makeover

Take a look at the Money Makeover article in this blog. This could present savings of E100s or E1,000s on things like mortgage, utility and phone bills. It’s possible to make significant savings on gas, electricity, home or car insurance by using comparison websites.

3 - Reclaim, Reclaim, Reclaim

Many people have unknowingly had money taken from them in tax overpayments. Never assume “it’s not me”... Its worth checking this out.

4 - Pay Bills By Direct Debit

Consider switching to paying bills by direct debit (DD). These automatic payments can help simplify your finances, helping you to budget and ensure bills get paid when you’re ill. Though do keep checking your bank statements.

You will usually get a discount from many companies for paying this way. But not all – for example, if you are paying for your car insurance through a monthly direct debit, you will probably find this more expensive than an upfront payment.

5 - Take Advantage Of Disability Discounts

If you receive disability-related benefits, you may be able to access a range of discounts and it is worth checking this out.

6 - Consider A Basic Bank Account

One way to help deal with your finances is a basic bank account. They are specially designed products for those with very poor credit scores, but can also be a useful tool for those who may build up debt when they are unwell.

They work similarly to current accounts, but won’t let you withdraw cash if there’s none in there. You can withdraw cash, and set up direct debits and standing orders as normal, but you can’t get a cheque book or overdraft. Though if you set up a direct debit or standing order and funds are not in the account so it bounces, you can still get charges – be careful of that.

Alternatively, credit unions are independently-run local co-operative organisations that aim to assist people who may not have access to financial products and services elsewhere. They offer loans, savings and, sometimes, current accounts.

7 - Free Loft Insulation And Even Boilers

Energy suppliers need to hit Eco targets, so they are giving insulation and boiler grants to those on certain benefits. And you don’t always need to be a customer. Free loft and cavity wall insulation can be worth over E1,000 combined, while a boiler grant could shave over E2,000 off the typical price. It’s only for those on certain benefits, who own (or in some cases rent) suitable properties.

8 - Check Credit Reference Files (For Free)

Its good to check that your ability to get new cheap credit isn’t being hampered by incorrect data on your credit files.

9 - Repay Debts With Savings

Its usually the case that debt costs much more than savings earn. Work on creating an emergency fund to address unexpected debts.

10 - Remortgaging: Shift Debts To A Cheap Deal

A mortgage is a loan secured on your home. This means if you can’t pay it back, the lender can take your house. This additional security is why it can offer a cheap rate over a long term.

One option is to shift credit card and other loan debts onto your mortgage (which will have a lower interest rate). A good idea but there’s a major flaw - you are turning unsecured debt into secured debt, so the risk of losing your home increases. It can be worth considering though, especially if you’ve a flexible mortgage, so you can pay the debts off more quickly.

11 – Reducing Spend

If you continue to spend, your finances are going to get worse – a big part of the solution is to stop the spend. Easier said than done though. Spending can help with mood. Retail therapy makes people feel good. But there are alternatives. Try simple ways to lift your mood: go for a gentle stroll, have a cuppa with a pal, eat more fruit and veg.

Rather than asking “How do I get the shiny new car/glamorous holiday/amazing Christmas I want on my income?”, ask “On my income, what’s the best lifestyle I can possibly have?”

Tips from people who’ve done it include sleeping on a purchase. You may find it doesn’t seem as attractive the next day. If an impulse buy tempts, work out how long it would take you to earn that money in hours worked. If you get paid £11/hour and it costs £220, that’s 20 extra hours.

Finally, leave debit/credit cards at home and simply don’t go shopping. If you don’t go to the shops, you can’t be lured by nice things.

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