How to make your own budget cuts

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Published:
21 March 2012
Topic:
Video,Gas & Electricity,Insurance,Money,Car,Home,Mortgages,Savings

As expected, there was little in terms of good news in this year's Budget and the nation's households continue to struggle to make ends meet. However, there are simple steps you can take which could save you a significant amount of money over the next 12 months...

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It's that time of year again. Chancellor George Osborne is preparing to reveal the cuts and increases he'll be making in the budget this Wednesday,

But we've released a report that highlights that there's a 'real' budget taking place in homes across the country as we continue to come to terms with our economy.

The 'Real Budget Report' looks at adjustments that have been made in the past year, and those set to be implemented in the next 12 months as households across the nation seek to make their own ends meet.

National Figures:

  • 74% of Brits say they have limited their household spending in the past 12 month
  • 26% are cutting back on both luxuries and necessities
  • 18% worry that they won't be able to provide for their family over the next 12 months
  • 47% say they don't see their financial situation getting better any time soon

Money is tight for many housholds and nearly three quarters of people made cut backs over the last 12 months.

With this in mind we looked at a number of different household expenses and worked out that the average home could save over £2,000 by switching to the best deals on all their bills.

Mortgage

For most people, the mortgage is the most important outgoing... and also the heftiest. That makes it really important to be sure you're on the best deal.

The average SVR is 4.83% just now. If you moved a moved a £150,000 mortgage from that rate to the current market-leading two year fix at 2.54%, you'd save £1,234 a year, even with the application fee.

It can be hard to decide if you need a fixed or variable rate, or whether you're better off remaining on your lenders' standard variable rate, so do seek help from a qualified mortgage adviser if you're not sure.

Car insurance

I know we go on about car insurance a lot at moneysupermarket.com, but it really is one of the easiest ways to save money compared to your renewal offer.

By comparing a number of different insurers through moneysupermarket.com, you'll save an average of £372 and it can take just three minutes to get a list of quotes.

With petrol costs through the roof, that's time well spent!

Home insurance

The same can be said for home insurance. If you let your policy automatically renew, you'll never know if you could have found a better deal elsewhere.

When your renewal hits the doormat, compare the price against other insurers online and you could save an average of £127.

Just don't skimp on the cover you need to bring the cost down - that's a false economy.

Energy

Switching energy providers is much simpler than many people think, so why pay more than you need to? The gas and electricity is exactly the same, no matter what you pay.

By switching to the cheapest online tariff, the average dual fuel customer can save more than £224 a year.

The money is definitely better in your pocket than theirs.

Savings

Savers probably feel like tearing out their hair at high inflation and low base rate. But if you're one of them - could you do more to help yourself?

The average easy access account pays just 0.20%. Move to one of the market-leading accounts paying over 3.00%, and you could earn over £290 in extra interest on a deposit of £10,000.

These are just a few quick tips on areas you can save money, but there are loads of things you can do to save money, be sure to check out the website for more money saving ideas.

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