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Looking to Save even more money this year? Sam Jefferies from Money Nest explains how you can save over 7k with these five simple steps.
Over to Sam . . .
I’ve always cringed when I see experts advise reusing tea bags to save 10 pence a week or why you should never pay for coffee.
By working to reduce your biggest expenses you can find you end up with far more cash in your pocket than if you’d spent a lifetime restraining yourself from ever purchasing coffee and only ever using the same tea bag!
Over the past year, I’ve successfully used the following methods to save £7,739! Some of these methods may seem blindingly obvious yet the majority of us in the UK fail to do them.
Interested? Let’s get started:
Value your time? Download this guide as a simple one page checklist – here
1.Work out your meals once a week (and order online) – Save £1,560
Ever find yourself in TESCO wandering around like a hungry zombie trying to figure out what to eat and what to buy? I used to be one of those zombies!
After moving in with my girlfriend we decided to work out a budget one outcome of this was to spend half an hour on a Sunday evening planning out the meals for the next week (we don’t plan the weekend) and then purchasing the exact ingredients online.
Through this alone, I save £30 per week on wasted food (£1,560 a year). Plus I gain a heap of time!
2. Compare your car insurance – Save £1,097
My eyes almost jumped out my head last week when my car insurance renewal came in…£1,777! By comparing different car insurance policies I ended up with a policy for £680 – a whopping £1,097 cheaper.
Yet I have many friends who’ve never changed insurer yet alone compared different prices at renewal time.
4. Don’t finance your car – Save £2,600 per year
This is a controversial one.
As I’ve got older the quality of cars my friend’s drive has skyrocketed and so has the cost!
The main issue with financing a car isn’t that your financing but that the car you end up purchasing is (usually) significantly more expensive than what you would have purchased had you bought with cash (£2,600 saving is based on buying a £15,000 car over a £2,000 car and keeping it for five years).
By looking at a monthly premium cost of say £400 a salesman can drift your thoughts onto the £400 instead of the whopping £15,000 purchase price.
You may think at the time you can afford the extra payment but as your new car loses it’s new car charm you’re left with the hangover of years and years of £400+ a month car payments.
If cars are your joy or passion in life, enjoy them. For most of us, though they are simply used to carry us safely around. So why pay such a high price – all you’re ever going to see whilst driving is the dashboard!
4. Have an SIM-only phone deal – Save £1,279
People often proclaim how they get a phone upgrade – for practically nothing, but if you’re paying £69.99 per month for two years – plus an upfront cost of £99.99 – is it really nothing?
Compare this to a sim only deal where you pay £16 a month and include a generous £500 for a new phone and over a 24 month period you’d save up to £1,279.75.
5. Negotiate on everything – Save £1,300
I used to presume you could only ever pay the ticket price, yet just by asking, this year I managed to save £100 on my monthly rent.
Whilst it can make you feel uncomfortable, negotiating can pay in a big way. I’ve also managed to increase my salary and drop £100 from the cost of my car – he even threw in a free CD (Dire Straits if your asking).
Some of the above may seem so simple (such as planning your weekly food and shopping online) but they really do make a big difference.
Whilst you may not be able to start doing all of the above even starting with a couple can save you thousands of pounds and you may find they are a lot more enjoyable than holding back from your weekly coffee!
Value your time? Download this guide as a simple one page checklist
Sam Jefferies writes for Money Nest – Helping 20-30yr olds make better financial decisions.