And this strategy is something we can do ourselves. With most households set to be worse off as a result of the budget, it’s time to become our own chancellor.
While the tax increases announced in the government’s Emergency Budget will probably resonate most with many people, let’s not forget that for every £1 pulled in through income-generating measures, £4 will be saved through spending cuts.
There are ways to increase your income, such as taking in a lodger or doing a second job. But reducing your outgoings is often much easier and it doesn’t necessarily mean cutting your standard of living.
Let’s take a look at how you could save more than £1,500 in five simple steps.
Switch your energy supplier. Average saving £174 a year
If you’ve never changed your gas and electricity provider, you’re missing out on substantial savings. The average household can cut £174 a year off their energy bills by switching to a cheaper tariff. You might even save more and it’s really simple. I change energy provider every year. I’ve just switched again having recently moved house, and stand to save £251 over the next 12 months.
Find the best deal on car insurance. Average saving £205 a year
Let’s face it, it is a bit of a chore sorting out your car insurance every year but don’t succumb to the easy option of just renewing with your existing provider. Make the effort to compare prices; it needn’t be a painful experience. It takes less than five minutes to compare quotes from more than 100 insurance providers and independent research found those who do save an average of £205.
Don’t pay more than you need for home insurance. Average saving £132 a year
Just as many people take the easy route of reinsuring their car with the same provider each year, it’s a similar situation with home insurance. But again there are significant savings to be had by comparing prices and ensuring you get the best deal. You could cut your home insurance premium by an average of £132 by doing this.
Reduce the cost of your credit card. Average saving £282 a year
If you’ve got an outstanding debt on a credit card you’re probably being charged an annual interest rate of around 18%. Assuming you have a good credit rating, you should be able to slash the amount of interest you’re paying by transferring the balance over to one of the great deals offering interest-free periods. Based on an average debt of £2,000, this could save you nearly £300 over a year.
Don’t pay full price when you don’t have to. Average saving £57 a month
If you haven’t already got into the habit of using discount vouchers when you go shopping or for a day or evening out, then it’s time to do so. There are thousands of great discount vouchers out there – you can find them easily on moneysupermarket.com’s voucher channel and by taking advantage of them, you and your family could save an average of £57 a month. That’s nearly £700 a year
So there you have it. It really isn’t hard to make significant savings and help offset some, if not all, of the impact of the emergency budget. Hopefully you’ll now be inspired and start making those spending cuts.