10 ways to save this New Year
If your New Year's resolution is to get yourself financially fit, following these ten simple steps should help get you started…
New Year is traditionally the time we resolve to banish bad habits and become a 'better' person.
With the country still in recession, it probably comes as no surprise that sorting out the old finances is at the top of most people's priority lists.
According to a recent survey by Tesco Bank, more than half of us vow to save more money and budget better at the start of the new decade.
To help get you on your way to a brighter financial future I've rounded up ten top money saving tips.
1. Switch energy suppliers
If I have said it once, I've said it a thousand times: when it comes to energy providers loyalty is rarely rewarded.
If you have never switched your energy provider, or haven't done so in the last 12 months, you could save a fortune by switching today - up to £430 in fact!
What's more, opting to manage your account online and paying by direct debit instead on receipt of bill could score you further savings. For more tips on how to cut the cost of your gas and electricity bills check out my article 'Six ways to slash your energy bills'.
2. Be frugal with your food shop
If you're anything like me and have spent Christmas stuffing yourself with sugary sweets and treats, you may be full of good intentions to eat healthily in the New Year. However, you don't need to spend a fortune on fancy organic food to do so.
If you shop online, mysupermarket.com is great for comparing the price of food at the four main supermarkets - Tesco, Sainsburys, Asda and Ocado (Waitrose). Better yet, this nifty website will also count your calories for you and make suggestions for healthier alternatives.
It's always worth checking out your local markets for fruit and veg, or why not even start growing your own?
3. Shop around for insurance
Like energy providers, insurance companies often offer their best deals to new customers so it pays to shop around when renewing or purchasing a policy. Always check in what circumstances your policy will protect you to ensure you aren't paying for cover you don't need, or already have.
To find out more ways to save on your home, car, life or travel insurance you can read my article 'How to buy the perfect insurance policy'.
4. Stop smoking
Another popular New Year's resolution for many people is to quit smoking. Smoking is not only seriously bad for your health, but it is also extremely expensive.
Say you smoked 10 cigarettes a day, at around £3.00 a packet, over the course of a 30 day month you will spend £90 on cigarettes - that's well over a thousand pounds a year!
If you want to kick your habit for good in 2010 check out the NHS website and find out how to claim your free quit smoking kit.
5. Earn cashback
In this day and age there are plenty of ways you can earn cashback for doing very little!
For example, if you regularly use plastic to pay for things, consider applying for a cashback credit card. These clever cards reward you with a proportion of what you spend, potentially earning you hundreds of pounds each year!
And if you shop online, purchasing your goods through a cashback website could claw you even more money back. It's also worth keeping an eye out for price comparison websites that offer cashback when you switch providers using their service.
6. Enjoy yourself for less
Keeping yourself entertained in the current climate doesn't have to cost the earth. Form a book club with some friends and take it in turns to host meetings.
On the other hand why not bring back an old hobby. Dust off that paint brush or shine those dancing shoes and start doing something you love. Joining a local sports team or theatre group is a great way to meet new people and keep fit without draining your bank balance dry.
7. Increase your income
If you have a set of skills, why not use it to make money? Could you teach piano lessons, a foreign language or coach a youth football team?
If you have a spare room consider taking in a lodger. Alternatively why not find out if you can rent your car parking space or an unused allotment plot.
Another easy way to make some extra cash is to sell any unwanted belongings (or Christmas presents). Try posting items on eBay and Amazon or have a good old fashioned car boot sale.
8. Cut your interest costs
If you're paying hefty interest charges on pricey plastic and personal loans, see if you can reduce the cost of your debt 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.
You can find out more about how to pay off your debts more quickly and cheaply in my article 'The cheapest way to clear your Christmas debt'.
9. Get fit for free
At around £40 a month gym memberships can be pricey so why find a way to work out for free.
Start cycling to work, walk your neighbour's dog or grab a friend and go for a run - mapmyrun.com is a great website for plotting a good route. It's also worth checking on the internet for simple exercises you can do in your own home.
10. Save, save, save!
Finally, if you haven't got a savings cushion in place to fall back on in emergencies now is time to start building a reserve.
Check out Serena Cowdy's article 'The New Year's resolution you really should keep' to find out which savings accounts are best suited for you.
Happy New Year!
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
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