The high cost of living can make it hard to cut credit card spending and other outgoings – but that doesn’t mean it’s impossible to make your money work harder for you.
Here are seven quick jobs for the New Year that could save you more than £4,000.
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In some, it is just a change in habit.
In others, it might take a little time in front of a computer screen with a cup of tea.
Either way, you’ll welcome the effort when you see what you’ve saved by this time next Christmas.
1. Switch credit cards – save £1,360
Let’s say you owe £2,363 on your credit card with an interest rate of 18.9%, and pay off £50 a month, which is the typical credit card debt, according to Money.co.uk.
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In this case, Moneysupermarket.com reckons it would take you until August 2030 to pay off what you owe, and it would cost you £660 in interest.
Switch to a 0% balance transfer card, and you’d repay the lot two years earlier, at a cost of £300 in fees and interest, saving you £1,360.
To find the best offer for you, check comparison sites such as Money.co.uk or Moneysupermarket.com before you apply.
Just remember that you’re not guaranteed to get the marketed rate and making several applications at once can damage your credit score.
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Instead, use a soft search eligibility checker beforehand to see what your chances are of getting approved.
2. Create a personal budget – save £100s
Keeping a tally in your head about what’s gone in and out of your account each month is virtually impossible.
How can you remember every parking meter fee or treats for the kids?
Setting up a simple Excel spreadsheet or keeping an account book can help you manage your outgoings.
You can also get one for free from the likes of MoneyHelper.
By being watchful about your spending, you can save hundreds of pounds, if not thousands.
3. Cancel subscriptions – save £500
Brits spend around £20billion a year on subscription services, with Amazon Prime and Netflix taking the lion’s share.
But then there are all the other streaming services, gym memberships food boxes, and magazines.
If you’re feeling the pinch, Finder.co.uk reckons that cancelling the lot could save the average household around £500 a year.
Alternatively, we’ve previously revealed how switching around streaming subscriptions can save you £800 a year.
4. Slash shopping bills – save £818
Shopping at convenience stores is far from helpful when it comes to your bank balance, according to Which?.
The consumer champion found that if you regularly bought the same 75 items a week at Tesco Express, it would cost you £817.91 more over a year than if you’d visited a Tesco supermarket.
If possible, plan ahead and shop primarily at the bigger stores to save.
5. Switch current accounts – get £200 free cash
Interest rates on savings accounts can be pretty dismal, unless you’re able to keep a float of over £1,000 a month in them.
Otherwise, what you’ll earn will be a pittance.
That said, if you can afford to deposit at least £1,000 a month, Nationwide will gift you £200 for opening a FlexDirect account, pay 5% in interest, and give you a 0% overdraft.
Offers can change with no notice though so always shop around before switching around in case there’s a better offer.
It’s easy to switch your bank account using the Current Account Switch Service (CASS).
You don’t have to remember to move direct debits over when moving as it does this everything for you.
All you have to do is apply for the new account you want and the new bank will let your existing provider know you’re moving.
There are some steps you can take before switching though, such as choosing your switch date, or organising transferring your old bank statements to your new account.
To get your old statements you should get in touch with your bank.
6. Open a Help to Save account – £1,200 in four years
If you get working tax credits or Universal Credit, you can open a Help to Save account, which will see the government give you 50p for every £1 you save.
All you need do is save between £1 and £50 a month.
Save the maximum £50 a month and after two years you’ll not only have £1,200 saved, but the government will send you a £600 bonus.
Continue saving at the same rate and you’ll get another £600.
Plus, you’d have access to your total savings after four years, which could be up to £2,400, plus the £1,200 in government bonuses you’ve earned.
7. Speak to a debt expert – save £100s
Just like budget planners, it’s hard to put an exact figure on what this could save you but many can save hundreds by getting out of debt early.
If you’re really struggling with the high cost of living, especially at this time of the year, speak to a debt expert.
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Citizens Advice, Money Helper and StepChange can all help.
Your local council will also be able to direct you to people who can help you manage your money, saving you in the long run.
