When people are concerned about their budgets, they may instantly think of getting a new or second job. Perhaps they should sell a spare car or other valuable item. If more money is going out than is coming in, the situation may well be unsustainable without taking drastic action.
In some cases, however, the situation may be less serious. It may call for a few lifestyle changes, such as eating out less or reducing the number of holidays. When lots of small money-saving steps are taken, they quickly add up. We are going to look at some of these together right now.
Assess Your Electricity Usage
Our fuel bills often take a hefty slice out of our paychecks. That means it’s well worth reviewing our lifestyle and electrical equipment. Anyone asking how to save electricity at home would be well advised to install programmable thermostats and to regularly defrost the freezer. Checks should be made over how well the home is insulated, and the use of home lighting should be reviewed.
Be Wise Over Credit Cards
Anyone who owes small sums of money on several cards should consolidate the debt onto one. People should look for an interest-free balance transfer credit card. This means the person won’t be paying interest while they repay the capital. When the initial period expires, an interest rate will be added. It’s therefore important to move the money to a similar new card before this occurs.
Credit cards do have their benefits and uses, but if they are only taken out for borrowing, it’s best to pay off the capital as soon as possible.
Use Price Comparison Websites
It can be time consuming looking for the best fuel or mortgage deals, or car and home insurance offers. Your current companies know that, and hope you won’t want the hassle of looking elsewhere. The problem is, it’s not always the cheapest thing to stay with the same companies.
Fortunately, there are special websites that display the best deals side by side. If it’s something like car insurance, there may be detailed breakdowns of what each policy offers (e.g. breakdown cover and excess amounts). It’s then easy to make comparisons and to save hours of internet searching in the process.
Review Your Phone Situation
There was a time when people had to own a landline in order to have wifi. Now that has changed, it can save money if it is discontinued. Most adults have mobile phones now, so there’s very little downside in doing this.
Mobile phone contracts may be for one or two years. After that it’s worth checking whether a better deal can be found elsewhere. You may even be able to upgrade your phone, and yet pay the same monthly amount through using a different company.
Follow The Three Quote Rule
If someone is going to get their home decorated, they would be foolish not to get several quotes first. If they only receive one, they have no way of knowing if it’s a high figure or not. The more quotes a person gets, the more accurate picture they will have.
Having said that, there is obvious wisdom in using a contractor who you know does a good job. People generally get what they pay for, so it’s important to beware of ridiculously competitive quotes. Whatever your need is, it’s often wise to go for a middle figure – not too low, but not the most expensive.
Review Your Subscriptions And Payments
Some people continue to pay for things they don’t need, simply because they don’t ever check their bank statements. It’s quite surprising that 80% of Americans who possess a gym membership don’t ever use it. A wise person will therefore regularly review what they are paying for.
If three people in the home have different Netflix subscriptions, they are wasting money. Why not pay one subscription for a multi-user account? When looking for antivirus software, it’s not just the cost price that should be considered. If one brand provides for one computer whilst another will protect three, there’s a difference in the value for money, Another example is Microsoft Office. People can pay for individual deals, or family subscriptions to cover everyone at home.
At the end of the day it’s good to look at your bank statements and lifestyle. Review the efficiency of your heating system and home appliances. With a few changes, it’s amazing how much money can be freed up for other things.