The Spring is a time for the traditional Spring Clean of one’s home – dusting the tops of shelves seldom reached, clearing out forsaken attics and decluttering overflowing wardrobes replete with outfits that no longer fit or suit. We often neglect other areas of our lives, including our finances. It used to be socially unacceptable to discuss one’s capital affairs but in the modern age, it’s encouraged and there are umpteen online forums and resources to aid the general public in better money management.
Here are five ways to assist you now:
Switch Providers
One of the most apparent ways to save is to switch your energy provider. The average household could save over £350 a year(1) just by changing who supplies their energy. Enter your details into one of the many comparison websites available online and discover if signing up to a new provider could work in your favour.
Rid yourself of wasteful subscriptions
According to research conducted by NatWest, the typical British adult wastes £39 a month(2) on unused subscriptions. That amounts to a tidy annual sum of £468 that could be better utilised in a savings account or put toward an upcoming jaunt abroad. The most common services include gym memberships, video streaming, premium delivery and old insurance policies. Some of these monthly fees occur when the subscriber isn’t conscious of a lapsed free trial. Take care to check your bank statements and cancel direct debits toward unwanted subscriptions.
Uncover lost money
There is estimated to be £850 million in old bank accounts, pensions, life assurance and investments(3). After fifteen years in a dormant account, the government can claim the money and have set up a Big Society Fund for this purpose, using the claimed funds to support social and community causes. Whilst this is a worthy endeavour, I am certain that Joe Public would prefer the money be in their current account, ISA or back pocket rather than in government hands. mylostaccount.org.uk is a free service which will support you in locating dormant accounts and rightfully retrieving any forgotten funds.
Strengthen your savings
Whilst it is imperative to employ good savings practice year-round, Spring is often the best time to take advantage of new products that many banks showcase at the start of the new tax year.
There are some choice deals and introductory offers to be had simply by opening a new savings account, transferring an ISA or switching a current account. Speak to your 2plan adviser for advice on what could work best for you.
Cash, not card
The well-known idiom cash is king may refer to investments rather than palpable money but I think it can be applied to the ever increasing use of contactless debit and credit cards that we experience presently. When making a transaction without the physical action of handing over the money to the vendor, we lose our connection with the reality of the sale and its impact on our bank balance. It is all too easy to rack up a substantial amount through a series of modest purchases – lunch from a local deli, a train ticket, a newspaper to peruse on the journey… all paid for with plastic. To reduce your spending on cards, and aid with budgeting, set yourself a weekly cash limit and ensure that you have the money available on your person at times when you may be tempted to buy. Every time you choose to buy something, keep the receipt – it’s marvellous to track your purchases and compare the figures to past spending when you relied solely on card payments. You should find that you spend a lot less, and can save much more.
Author: Chloe Binns 2plan
- 1) energyscanner.com/how-much-can-i-save-by-switching-my-energy-supply/
- 2) moneyexpert.com/news/brits-waste-average-39-month-unused-subscriptions/
- 3) moneysavingexpert.com/reclaim/reclaim-lost-assets-free/