Wondering how to save money in the current cost-of-living crisis?
If you're anything like us, you're pretty much always in a bit of a panic about your bank account. Maybe you're trying to save for a deposit, maybe you're trying to file your own taxes, maybe you're just trying to budget between pay days. Whatever it is, money worries can keep you up at night.
The 2020/2021 coronavirus restrictions had a huge impact on many peoples’ ability to work and earn, and now rising inflation prices have caused a dramatic increase in financial anxiety.
Would you talk money on the first date?
There's no doubt that the cost-of-living crisis is affecting how many of us are leading our lives – the annual rate of inflation was the highest it has been since 1982 in July 2022, majorly affecting the affordability of goods and services for households. Energy prices are also on the up. According to the Office for National Statistics, 89% of adults in Great Britain reported an increase in their cost of living in August 2022.
Many are desperate to know how to save money during this time of uncertainty – and while it can seem scary, there are small ways you can make a difference. With a little help from GoCompare and Mortgage Advice Bureau, we've compiled a list of money saving tips everyone can adopt.
1. Cancel Sky
Many won't want to hear this, but additional entertainment packages such as Sky Sports or Movies really add up each year. If you can, consider cancelling your package, or at least amending it, depending on what you actually watch.
2. Freeze gym membership
If you're not regularly using and enjoying your gym, it's not a cost worth forking out for. To stay fit and active, you could create a home gym instead. Make use of things you have around the house rather than splashing out on expensive equipment. YouTube is a great place to go to for home workout inspiration.
3. Supermarkets' own brands - don’t diss them till you try them!
Whilst you might be the biggest lover of Heinz, it’s time to give the supermarkets' own brands a go - and you never know, you might be pleasantly surprised.
4. Ditch the car
Try to seek out any opportunity to stretch your legs and get walking. Leave the car at home and walk to the shops instead. Carrying your shopping bags back will definitely get the heart rate up - who needs dumbbells, eh?
5. Clear your direct debits
Make a list of all the direct debits you pay out each month. Obviously there will be ones that you have to keep, but put a mark next to the ones that are ‘nice to haves’. Question whether you really need that magazine subscription right now…
6. Get savvy with food
An average household wastes around £500 a year on food and drink. This is a huge amount of money that we’d all rather have in our own pockets right now, so let’s do something about it.
- Meal plan: only buy the ingredients that you need to cook your planned meals for the week or fortnight. This should cut down on a considerable amount of waste straight away.
- Batch cooking: cook big batches and freeze portions. This is great if you have veg or meat that needs to be used up, and is also really convenient for those days when you can’t be bothered to cook anything - just go to your freezer and take out a portion for that day.
- Buy frozen: if you have the freezer space, try to opt for as much frozen fruit and veg as possible. They’re just as nutritious as fresh but will last much longer - did you know you can buy frozen, and ready chopped, peppers, onion and spinach?
- Grow your own vegetables and herbs: Although this isn’t a quick win, growing your own vegetables and herbs in your back garden is an incredibly satisfying exercise. There’s nothing quite like sitting down to eat a meal that you’ve produced with your own two hands, from scratch!
7. Save money on energy bills
With the energy prices sky high, it's important to look at your energy deal to see what the current situation means for you. At the moment, it may be that a standard variable tariff can be the cheapest deal that many customers can sign up to, but it can vary depending on each household.
With Look After My Bills, it’s really quick and easy to see how to save money by switching your energy providers. Plus, simple energy-saving actions such as avoiding using a tumble dryer, taking shorter showers and reducing the temperature at which you wash clothes can save money. The Energy Savings Trust has more information.
The government has announced new plans to try and help.
8. New love for old clothes
Rather than buying new clothes, reignite your love for old clothes that you’ve forgotten about. Dig deep to the back of your wardrobe and experiment with new styles. Get creative, try bright colours, clashing patterns, the lot. It's one of the easiest money saving tips you can try.
9. Cashback credit card rewards
If you use a credit card regularly, and responsibly, it’s worth getting one that you can earn cashback rewards on, as this is essentially free money for using their credit cards, so why not?
10. Use this thrifty app to track your money and save, save, save
There are a lot of money-saving apps on the market, but this one is highly rated. Tandem helps you put aside little stashes of money, alerts you when money comes into your account and tells you if a bill is more expensive than it has been.
11. Get Monzo so you can keep an eye on your money
Not only will you get a bright pink bank card, you'll also be able to see every time you spend money, set a monthly budget, pay people easily and access helpful little summaries of where your money's going. Oh, and when you travel, you can get money out without fees.
12. Switch and save on car and home insurance
When your policy comes up for renewal, make sure you shop around to check whether you are being offered a good deal. You can cut the cost of insurance without having to compromise on cover. People who shop-around with GoCompare typically save up to £2561 on their car insurance and up to £1002 on their home insurance.
13. Vouchers, coupons, loyalty, and gift cards
Cut the cost of shopping by using any money-off vouchers or coupons you have and using unspent loyalty card points. Dig-out any gift cards you have and spend the ones you can before they expire.
Five genius tips for finessing you that extra dollar.
14. Consider a 0% credit card
The average household credit card debt is £2,655. With the average credit card interest rate of 19.87%, that would rack up interest payments alone of 38.25 a month. By switching to a 0% credit card, you could save £459 a year on interest.
15. Pay for big-ticket items by credit card
If you need to make a big purchase, consider paying by credit card as it gives you added legal protection (under section 75 of The Consumer Credit Act) if the company goes bust or doesn’t deliver what it’s promised. Individual items costing between £100 and £30,000 qualify for protection. Of course, only use a credit card if you know you can comfortably pay for it at a later date.
16. Ask for help when you need it
A lot companies and banks will help you out if you're struggling to make certain payments. You can find out more about your options and rights at Citizens Advice.
17. Resist email offers by unsubscribing
If you accidentally – or deliberately – signed up to get special offers from some brand you bought one thing from once and you're tempted by shiny deals all the time, unsubscribe. Use this site to do it easily.
18. Share your subscriptions
Another easy money saving tip is to look at all your entertainment subscriptions – Netflix, Amazon Prime, Disney+ etc. – and see if you can share them amongst friends and family. Most offer a number of users under each subscriber.
19. Check the ‘reduced’ aisle at the supermarket
Those markdown goods are still perfectly fine to eat – they'll just be close to their sell-by date, so either eat them straightaway or stick them in the freezer for a later date.
20. Sell unwanted things
A wardrobe clear-out is a great way to make some extra money. Sell your never-worn clothes on eBay or Depop – or try a car boot sale with your unwanted bits and bobs. You'll be surprised what you sell!
21. Don't heat unused rooms
If you have a spare room that's rarely used, make sure you turn the radiator down to its lowest setting so you don't pay for unnecessary heating.
