The start of 2012 has seen a move away from the more common preoccupation with weight-loss and dieting, and towards the nation’s spending habits.
It seems financial advice is the new fad-diet, with tips from experts currently flooding the web. Emma Wall, of the Telegraph, has compiled her own list of tips for curbing the spending.
1. Change your current account
It’s worth doing some research into different interest rates as you may find a more financially rewarding deal than the one you are currently on. However small the remuneration, any increase is a positive. Statistically you are more likely to get a divorce than change your current account, which is why banks are forever inventing incentives. Just be aware of the terms before you choose to move.
2. Be energy efficient
Heating a house is incredibly expensive- we all know that. So why spend so much money, only for the heat to leak out through the walls or windows? Insulating your house is an investment and you will end up saving a huge amount of money. For example, injecting foam into the space between the internal and external wall could save £110 every year. Upgrading the foam to 270mm, you could save £25 a year.
If you are on a low income or a pensioner, you may be entitled to a grant for installing insulation.
3. Take advantage of low Bank Rate
We are currently experiencing an all time low on Bank Rate, so take advantage by making overpayments to your tracker mortgage to reduce your debt. Prioritise your debts- the higher the interest, the faster you will need to pay it off if you want to keep costs as low as possible.
4. Make sure you are insured
If your household is underinsured, along with the 7million British households that are, then many of your personal belongings will be at risk. If someone broke in, or if a fire started, you may have to fork out of your own pocket to replace them. You are advised to make a list of all of the items in every room of your house, recording the cost of replacing each with a new model. The premium may rise, but it would still work out cheaper than having to pay for loss or damage yourself.
5. Prepare for the future
If you don’t have a pension, apply for one now. Recent research suggests that the state pension could rise to 70 by 2050. If you put away £75 a month from the age of 20 until retirement, you should produce an income for life of around £17,000. The longer you wait, the further this figure will decrease.
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