FILLING up your shopping basket or the car is going to be more expensive in 2022.
Inflation is at its highest level in ten years – with a devastating knock-on effect for the soaring cost of living.
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Train fares are going up, along with National Insurance, and the Bank of England has announced a rise in the interest rate, which will make most mortgage and debt repayments more expensive too.
But plenty can be done to keep your finances in check.
Here are my money resolutions for 2022.
SHOP AROUND
WHEN it comes to our groceries, check to see how much it pays to be loyal.
Most supermarkets offer points for money spent in store or online.
But not all points are equal, and they don’t always make up for more expensive food.
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To give you an idea, the Tesco Clubcard Plus costs £7.99 and the headline offer is a 10 per cent discount on your groceries – with certain restrictions applying.
The Co-op loyalty scheme allows you to earn two per cent cashback when you buy selected Co-op own-brand items or services, plus two per cent goes to a local charity.
Sainsbury’s Nectar card gives you up to three points for every £1 spent at Sainsbury’s, Argos and on Tu Clothing, as well as one point for every £5 spent elsewhere.
And Morrisons offers personalised money-off reductions based on your shopping habits.
So before you go all in on building up your loyalty points at one store, shop around and compare prices and schemes.
Be aware that even within one supermarket chain, prices can differ dramatically.
Smaller local convenience shops charge more than larger stores for the same item, so it might be worth travelling that extra mile to get better value.
As our food and weekly groceries have become increasingly expensive, these simple tips can save you money each week.
KNOW WHERE YOU STAND
REGULARLY check your bank statements to see how you are doing.
Progress can be a big motivator to keep up the great work.
Our finances fluctuate, so staying focused on long-term progress rather than short-term setbacks can help.
Do this every month. Perhaps this is best done after pay day, so you can start on the right foot and keep up those healthy money habits throughout the weeks ahead.
There are apps such as Emma and Money Dashboard that can show you where you’re spending needlessly and help you budget for a future goal.
GET THE APPY HABIT
IT’S worth looking for apps that you find the most user-friendly and will encourage you to squirrel away the most often.
There are online tools such as camelcamelcamel.com which are great for tracking online prices.
A Shark hand-held vacuum cleaner, for example, currently costs £98.99 on Amazon, but in July it was just £57.97.
START A SAVINGS ACCOUNT
CONSIDER setting up a separate account to squirrel away any money saved to protect it from being spent.
Left in your current account, extra cash is easily splurged on impulse purchases.
But if it’s saved in a separate account, the money is at least one step removed from being used accidentally .
Setting up a new savings account at the same bank you are already with is simple.
And with online banking, it’s as easy as the touch of a button.
You can even give the account a name that reminds you why you’re saving.
Money you save in a “holiday” account, for example, is less likely to be spent on extra items at the supermarket.
Watching the account grow over time can feel really rewarding.
To find the best savings rate, with the right level of access to your money, comparison websites such as MoneySupermarket.com can help.
A look on the site shows there are regular savings accounts offering up to 1.75 per cent interest on your money.
BECOME A DEBT BUSTER
PRIORITISE paying off expensive debts first with any money you’ve saved.
The charity Mind found that the average UK debt per person is over £30,000, including mortgage, loans and credit cards.
The debt isn’t just the amount owed, but the interest charged on it each month.
This is why it is so easy for things to spiral out of control.
Small, regular payments to reduce the debt and monthly charges will make it far more manageable.
Each time you make a payment, you are chipping away at what you owe, and hopefully giving yourself more peace of mind at the same time.
There are debt pay-off planner apps that can help, plus free advice from charities such as Citizens Advice, the StepChange Debt Charity and the National Debtline.
LOOK FOR LEAKS
CHECK bank statements for subscriptions you no longer need and free trials that you are now paying for without realising it.
Remember that app you signed up for but never used? Or how about the gym membership sitting idle but costing you each month?
Cutting spending on things you don’t need is one of the easiest first steps to achieving your financial goal.
For example, cancelling a £30-a-month gym membership you never use will save you a whopping £360 to spend next Christmas.
If you don’t feel ready to cut back, there might be an option to freeze a subscription or downgrade a package, which could help.
SMART TRAVEL
WITH train travel, not all journeys to the same destination are created equal.
There are plenty of ways to save on your ticket prices, with fares due to rise by 3.8 per cent in March.
Travelling off-peak, booking in advance and comparing return tickets with single tickets for all or part of the journey can help your wallet.
Consider buying season tickets and rail cards to cover multiple trips.
Drivers, compare fuel prices with websites such as petrolprices.com.
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