Money Guide

Financial Boot Camp

The New Year has just begun and we’re all busy making our resolutions. No matter what you want to change, we could all do with having a little more spare cash. So why not follow our 10 tips and get your finances into shape for 2007. Simple steps to saving money without breaking sweat.

1. Energy suppliers

The average three bedroom house getting both gas and electricity from British Gas spends almost £1,400 a year. Switching your amenities could save you a couple of hundred pounds a year*. As well as saving money, you could also switch to a green package like the Green Tariff from British Gas, which allows you to opt for energy from renewable sources.

Click here to see how much you could save.

While you can’t shop around for a new water supplier, you can get a water meter installed. Check with your supplier to see if you can have one installed at your address. Once you have one, you will only have to pay for the water that you actually use.

2. Your mortgage

Changing your mortgage deal is one of the biggest money saving changes you can make. There are so many new deals emerging all the time that you’re bound to find a cheaper one.

But be aware that there might be redemption penalties or an admin fee for moving your mortgage, but it will probably still be cheaper over three years.

Even if you’re happy with your provider and don’t want to switch, you can most likely still get a new deal, just by asking or by threatening to leave.

Overpaying on your mortgage can also be a great way of saving money as it reduces your interest, so if you can afford to, it’s definitely something you should consider.

Click here to Compare Mortgage Deals. But be sure to talk to a broker before making any commitments.

3. Credit cards

The benefits of zero per cent on credit card balance transfers has been apparent for some time, and with the potential to save you a lot of money, these offers have been somewhat exploited. If you are paying interest on your credit card it’s wise to transfer the balance.

Bear in mind however, that, in a bid to stop “rate tarts” – who continually transfer their balances so they don’t have to pay them off – banks have begun to charge for transfers to zero per cent deals. These are still a good idea if you think you can pay the balance off before you have to start paying interest. If not, it might be better to go for a low rate on the life of the balance instead.

Click here to Compare Interest Rates and to find the best deal for you.

You should also look at what benefits you get from your savings account. There are loads of deals around, but if you’re using a normal savings account you will be paying tax on any interest gained. Try transferring your money to a mini cash ISA, which allows you to pay in £3,000 a year, at competitive rates and you won’t have to pay tax on the interest.

4. Home phone

Most people pay £12 a month for their BT landline but there are some very competitive home phone packages out there – such as Toucan, who offers line rental for only £8.99.

Even if you don’t want to move away from BT, it’s still a good idea to pay your bills by direct debit, which will save you £12 a year.

Compare home phone deals.

If you have broadband and live in a cable area you could get your internet from ntl or Telewest, and then use an internet phone to make your calls. Click here to read our article on Voice over Internet Protocol (VoIP).

5. Energy efficiency

Making your home energy efficient can save you loads of money, and you’ll also be doing your bit for the environment. Turning your thermostat down by just one degree centigrade can save you £49 a year (Energy Savings Trust, 2006), while insulating your wall cavities can reduce your heating bill by 33 per cent (Friends of the Earth, 2006)

Click here to read our article on Energy Efficiency.

6. Insurance

Doing your research when it comes to home, car or life insurance can also free up some cash. Try a website like Confused to compare the price of different insurance brokers.

7. Your mobile

If you’ve had your mobile phone contract for some time, you’re probably missing out on some great deals. Check out the latest offers. You will probably be able to keep your old number and will be able to get a better deal, save money and get a new phone too.

8. Assess your needs

Ask yourself if you really need that digital TV subscription? Or are you ever going to use that gym membership? Many people feel guilty from over-eating and sign up after the Christmas period, but according to a recent survey by Sainsbury’s £200m is wasted each year on unused gym memberships.

By accurately assessing your needs to won’t end up wasting money on unnecessary things.

9. Shop online

By doing your grocery shopping online, you will save money on special internet-only deals and will be less likely to impulse buy.

10. Cut back

Finally, and obviously, if you want to save money, you need to cut back on luxuries like taxis and takeaways. Be honest about where your money goes – if you spend it all in restaurants or buy too many shoes, then maybe it’s time to stop.

* According to Simply Switch

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