10 steps that will save you money this year

Right now, with the recession still biting hard, many of our piggy banks are feeling rather peckish. Here are my top tips to help ease the strain on your weary wallet…

Since the credit crunch, I have been impressed (if not a little bemused!) by how far some of us are willing to go to squeeze the most out of our money.

Even I, a money saving enthusiast, would draw the line at sitting in the dark, melting old soap scraps together and brewing my own beer. (Having said that, some of my BeatThatQuote.com colleagues have begun growing their own tomatoes.)

In this article, I'll explain ten simple ways you can rein in your spending and free up some extra cash - without resorting to extremes!

1. Revisit your budget

If you've never bothered to make a budget, let alone stick to it, now is the time organise your finances and sharpen up your money management skills.

Only once you know exactly where you money goes each month will you be able to see where you might make savings.

Searching for top tips on successful budgeting? Read Laura Starkey's useful article, 'The beginners guide to budgeting.'

2. Plan in advance

When it comes to managing your money, a little forward thinking can go a long way.

Always make sure you plan your purchases carefully, leaving yourself enough time to shop around thoroughly and dig out the best deal.

Also, planning ahead will allow you to consider how and when you will pay for the things you buy. For example, you might want to use a 0% purchases card when buying a big ticket item - so you'd need to apply for this in advance.

3. Beat down your bills

Your next step should be to trim down your essential spending by as much as possible.

Look at how much you're paying for your energy, broadband and insurance premiums and investigate whether you could bag a better deal somewhere else.

One of the quickest and easiest ways to compare a range of deals from different companies is to use an online comparison service such as BeatThatQuote.com.

4. Cut the cost of old debt

If you're paying hefty interest charges on pricey plastic and personal loans, see if you could cut your costs by shifting what you owe onto a balance transfer credit card.

If used wisely, these clever cards could save you hundreds of pounds in pesky interest payments, helping you to ditch your debts faster and for less.

To find out more about how to make your existing debts cheaper, read 'The beginner's guide to balance transfers'.

5. Cut the cost of new debt

Right now, if you need to borrow money to make a new purchase, it's crucial you do so as cheaply as possible.

If handled carefully, a 0% purchases credit card could help you spread the cost of an expensive buy over a few months at no extra cost.

You can learn more about how these cards work in my article 'The cheapest way to borrow now'.

6. Get rid of financial products you don't need

Go through your finances with a fine-tooth comb and make sure you're not wasting money on products you don't need.

Be aware that some companies charge a dormancy fee if you don't use an account you hold with them for a set period of time. Therefore, ensure you cancel the current accounts and credit cards you no longer use to avoid any nasty surprises later down the line.

It's also important to find out exactly what insurance policies you're paying for and under what circumstances you will, and won't, be covered. If you're shelling out for a policy that you no longer need, get rid of it!

Also, make sure you aren't doubling up on cover - for example, by insuring your mobile phone separately when it is already covered under your home insurance.

7. Ditch your packaged current account

In return for a monthly fee, a packaged current account will usually offer additional benefits such as mobile phone insurance, car breakdown cover or travel insurance.

However, it's worth being aware that these accounts don't always offer value for money.

Often you won't use their perks - and even if you do require all the add-ons, you could potentially get them elsewhere for less than it would cost you per year to pay for the packaged deal.

Adding insult to injury, the rates of in credit interest on this type of account tend to be low.

In my opinion, it makes more sense to opt for a free, market leading current account that pays a top level of interest. Then, shop around for the other financial products you need.

8. Shop smarter

In this day and age, savvy spenders know that shopping online can be a quick and easy way to save money on everything from CDs and DVDs to clothes and cookware.

Websites called 'Shopbots' can save you time and money by tracking down the cheapest prices on specific items, completely free of charge..

Read my article 'Why I love online shopping' to find out more about how the World Wide Web could help you bag a bargain.

9. Eat in and out for less

These days, food - glorious food! - doesn't have to cost you a fortune.

If your idea of a good night out is to treat yourself to some fancy eats in a nice restaurant, my article 'Five ways to eat out for less' could help take the bite out of your bill.

On the other hand, if you prefer to snuggle up on the sofa and indulge at home my article '7 ways to save on your weekly shop' could help you make some spectacular savings at the supermarket.

10. Don't be fooled by brands

Finally, remember: just because something is more expensive, that doesn't mean it's better quality!

Next time you're at the supermarket, why not swap an expensive brand for a cheaper equivalent and see if you can really notice a difference.

It might also be worth checking out the website SupermarketOwnBrand for reviews and ratings on own brand products.

Happy saving!

**Articles featured on BeatThatQuote.com are for information purposes only and reflect the views of individual writers. Articles are not, and should not be considered as, financial advice. BeatThatQuote.com strongly encourages our readers not to rely solely on information contained within our website, but to conduct their own research and seek independent advice about the financial products they purchase.**