Whether you’re a teacher, professional, retired or simply looking to save money to make things a little easier each month, we’ve compiled our top ten tips to help you save on your everyday household bills.
1. Reduce mortgage payments
Gone are the days when a borrower stayed with the same lender for 25 years. It pays to shop around when your current interest rate deal ends with your lender.
Go to moneyadviceservice.org.uk for unbiased assistance and mortgage comparisons.
2. Repay expensive debts
Repaying expensive debts really is a good idea. Look at it like this: if you’ve got money sitting in your bank savings account earning, say, 2% interest after tax, and you’re perhaps paying 18% interest on your credit card, then you’re making money…for the bank!
3. Reduce your fuel bills
The average household fuel bill has doubled in the last six or seven years (Source: ofgem.gov.uk). Shopping around for the best supplier can save you a substantial amount; especially if you opt for a dual fuel deal (i.e. you get your gas and electricity from one supplier).
It’s easy to compare suppliers online now – try the energy price comparison tool at consumerfocus.org.uk.
4. Review your home insurance provider
It’s important to remember that, with home insurance, you get what you pay for. The last thing you need is to find out you’re not covered should the worst happen.
Before you switch provider, consider the following:
The small print – Will your home still be insured if you de-camp to Tuscany for a few weeks’ rest and recuperation this summer? Will you be able to call for help in case there’s a home emergency such as a burst pipe?
The real cost – Some companies lure you in with an attractive discount but then impose compulsory excesses at the point of claim
The claims process – Does the company have a UK based claims centre? Are they available around the clock? Will you be assigned your own personal claims handler or will you be passed from pillar to post?
Take a look at our Home and Contents Insurance. It’s been designed to give individuals peace of mind in all of these areas. Click here for more information.
5. Review your car insurance provider
Unfortunately, we don’t offer a car insurance policy but it’s worth looking at one of the many comparison sites online as this could save hundreds of pounds a year.
Little things that can make a big difference to how much you pay include:
Payment frequency – Many companies charge interest if you pay monthly. The rate of interest you pay can vary quite a bit so do look closely at this
Your annual mileage – Try to be as accurate as you can with this. Some companies will charge more, the higher your mileage
Your job – Some companies take into account your job title when deciding how much risk you pose as a driver. As a bit of fun, try the ‘car insurance job picker’ at moneysavingexpert.com to see what difference the description of your job role can make. Make sure you select a job that accurately describes your role, if not your insurance may be invalidated
6. Review your other insurance policies
If you are considering replacing your existing life assurance, critical illness cover or income protection, there are two things to bear in mind:
Companies offering critical illness and income protection cover have tightened up on their definitions of illness in recent years. So, if you replace your policy, you could find you’re no longer covered for conditions that you were covered for in the past. When it comes to stress, heart conditions and cancers, it pays to read the small print. Call us if you need help deciphering the jargon
Timing – Never cancel your existing cover before you’ve had confirmation that the new policy has started
We’ve teamed up with two companies to offer life cover, income protection and critical illness plans. Click here for more information.
7. Reduce your phone, television and broadband bills
You can often make savings by bundling together your phone, television and/or broadband. Compare prices on one of the online comparison sites such as uswitch.com. Before you do this, ask yourself; do you really need all of those channels?
8. Food and household
There are lots of ways in which you can save on food and household items. Switch supermarkets. Try some own brand or value range goods (they’re often made by the same people who make the branded ones). Go to the market instead of the shops. Wash clothes less frequently (and save water too). The list goes on.
9. Travel
Totting up the real cost of car travel can come as quite a shock. Petrol is just the start of it. Once you add in tax, insurance, wear and tear, M.O.T., servicing, etc. it can make you think twice before reversing off the drive. Consider the train for long distances or invest in a bike for shorter trips and get fit while you save money.
10. Claim tax relief on your professional subscriptions
If you’re a teacher, you may be able to claim tax relief on your professional subscriptions such as your union membership. If you haven’t taken advantage of this already, you may be able to claim back this tax relief for past tax years as well.
Example:
Let’s say you’ve paid, on average, an annual union subscription of around £150 for the last four years, giving a total contribution of £600.
This could mean a tax rebate of £120 for a basic rate taxpayer (20% tax rate) or £240 for a higher rate taxpayer (40% tax rate).
You’ll need to speak to your local tax office for details of how to claim tax relief on the various subscriptions you pay.
For more information
To find out about our 5 Star rated Home Insurance, please call our Home Insurance sales team on 0800 378 722. If, having taken action on any of the above suggestions, you’ve saved money and would like to put it away for the future, call our Customer Support team to talk about your investment options. Calls to 0800 056 0563 are free from a landline and lines are open seven days a week.
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