Ways to Save Money
Losing your job has an immediate impact on your financial situation. If you have some warning about redundancy or dismissal you can put some financial plans in place to cope. If you are already out of work you may feel the need for a more radical approach. So what are the practical ways you can save money?
- If you have a policy which protects your mortgage and pays it when you are made redundant, check the terms and make sure the conditions of your dismissal allow you to make a claim.
- If you don’t have a mortgage protection policy, talk to your existing lender about re-negotiating your mortgage on easier to manage terms. The more information they have, the better a position they are in to help you.
- Use existing savings and/or redundancy payments to pay off any high interest debts such as credit and/or store cards. It may not seem like the most attractive option, but the interest accruing on credit cards will outweigh any interest you would receive on saving it. It also instantly reduces your monthly outgoings.
- If you do not have sufficient funds to clear all your credit card debts then consider consolidating your debts and transferring them to a card with a low interest rate. Many credit card providers are offering 0% interest for six months on balance transfers.
- Have a thorough and honest examination of all household expenditure – identify where you can save money, for example some utility providers provide discounts if you take all supplies from them. Look at any sites for the cheapest provider. Suggested areas for potential savings include food, drink, telephone, gas, electricity, vehicles/transport and leisure.
- You don’t have to cut things out, just look for alternatives, for example, walking the dog instead of an expensive gym membership. If you haven’t got a dog, offer a dog walking service and earn some money at the same time.
- Have a budget each week, make it realistic and stick to it. You may find application budget planner for your smartphone . If you have to, take an amount out of the bank at the beginning of the week and just use that. This allows you to keep a grasp of what you are spending and know exactly where you are financially. Leave your debit and credit cards at home when you go out shopping.