5 New Year Resolutions That Can Save You Money
Every new year starts with a string of resolutions to improve your life one way or the other. This new year, stick to the following resolutions and you will find yourself richer by a few thousand pounds by the end of the year.
- Take a good, hard look at your expenses
Unnecessary expenses are a big drain on your wallet. Scrutinise your expenses to see what you can avoid going forward. Cutting down on things like eat-outs, takeaways, impulsive shopping etc. could save you over ₤5000 a year. Take measures to cut your energy bills. And if it is time to renew insurance, see if you can get a better deal elsewhere.
- Avoid credit card debt
Pay off your credit card bills in whole if you can, or as much as you can spare every month. Paying the minimum amount every month piles up your debt and is financially unwise.
- Pay ahead on your mortgage
Work with your financial adviser to see how many years you can cut off from your mortgage period with a little extra payment every month. This helps you to close the mortgage faster and also allows you to take the most advantage of lower interest rates before they get hiked up. But check your contract to see how much you can overpay without attracting penalty.
- Create an emergency fund
Unexpected expenses like car repairs, home repairs, replacing appliances can hit you any time. Be prepared to meet them by putting a small amount aside every month so that when the need arises, you do not have to look for loans or use your credit card to meet expenses. A loan, though convenient, is always a lot costlier than if you pay out of your own pocket. For those not habituated to save, you can leave a standing instruction with your bank to move a small amount from your current to your savings account every month.
- Renegotiate with your bank
If you are a loyal customer, you can talk to your bank about cutting some of their charges like overdraft fees. If you have been regular in paying your credit card bills, ask for a lower APR and a higher credit limit. Chances are there might be a promotional offer that you can take advantage of. Consolidate your debts into the card with the lowest APR.
Review finances periodically to see where you stand and to take stock of your savings. This not only shows you if your actions are paying off, it also motivates you to stay on track with your resolutions. Home Saving Guide wishes you a happy and rewarding year ahead!