How to save money?

Saving money essentially boils down to spending less money than you earn, but that does not mean that you need, necessarily, to resort to tactics such as going AWOL when it's your turn to buy a round of drinks in the pub, or cadging from your family and friends. There are many much more sociable ways of saving money, some of which require just a little thought, or minimal changes to your lifestyle, but can result in net savings of hundreds, or even thousands, of pounds each year.

Saving Tips

Almost everyone has essential monthly outgoings for food, utilities such as water, gas, and electricity, and other strictly termed "non-essential" outgoings, which may include the servicing of debts, such as credit cards, or personal loans. In fact, the average person in Britain has £1,000 of credit card debt, on which the rate of interest charged is often very high.

Many people can reduce their monthly outgoings either by switching to a credit card that offers 0% on balance transfers for an introductory period and a more competitive rate of interest thereafter, or by replacing credit card debt with a debt consolidation loan. If you are considering restructuring you finances in this way, think carefully about whether you actually need PPI ("Payment Protection Insurance") to accompany the loan. PPI is often massively overpriced, and can increase the cost of a loan by anything up to 25%.

Budget correctly

Saving money obviously requires a degree of self-control. Money not immediately accounted for is not, therefore automatically deemed "disposable", and spent. Self-control is not always easy, however, so paying bills by direct debit, for which there may well be a discount and opening a savings account that is funded, automatically, in the same way, can be a way of ensuring that you budget correctly and set aside a little money for the proverbial "rainy day".

Save money on energy

You can also save on your energy bills by making a few small adjustments. Turning down your central heating thermostat by just one degree can save 10% on your annual heating bill, not to mention reducing your carbon footprint. Small measures like filling your kettle with the amount of water you need, rather than full, prevents energy being wasted in heating water that you never use.

Save money on mobile phones

Your mobile phone tariff may provide you with a top of the range mobile phone, free of charge, but if you're paying £50 per month for the privilege whether or not you make that many phone calls, you may like to think about switching to a pay-as-you-go mobile phone at a fraction of the cost.

Just save money!

Savings on groceries and other items can be made by using money-off coupons, or by waiting until sale time, for larger items and if you dream of a National Lottery win putting an end to your financial worries, remember that buying ten tickets every week shortens the odds of you winning, but only to 1,400,000/1. "It could be you", but the chances are it won't be, so you may be better off in the long term buying just one ticket each week and investing the other £9.