Jul

How to Make Your Money Stretch Further

site management on July 24th, 2009

How to Make Your Money Stretch Further
By Geoff Cummings

Those of us fortunate still to have a job shouldn’t be assuming that the next time we are due for a pay increase we will necessarily get one. I know of several companies where they have refused their employees a pay rise due to the economic downturn.

That being the case, with prices rising, albeit slowly in some sectors, how can money be made to stretch further?

ISA’s can be a good idea to avoid paying tax on savings up to certain levels (which are due to be increased from 2010, or October 2009 for those over 50). But, you should shop around, not just for the best ISA, but also to see whether an ISA is the best investment from an interest point of view. There`s little point in not having to pay tax on your savings if the amount of interest you receive is much lower than other forms of accounts.

Older people aren’t always fully aware of what benefits they are entitled to. Of all age groups often they are the ones needing to make their income stretch further. Make sure that you know what you can receive for your age group and your own personal circumstances. Citizen’s Advice should be able to help out with providing the right information about making claims and receiving benefits.

If you run a car you need motor insurance by law. What you don’t have to do is pay more than you need. Before your insurance becomes due you should spend some time checking how much you are due for the next year, and compare different insurance companies. Competition for your business is hot, so take advantage of that. Although home insurance might not be a legal requirement you’d be crazy not to have it. Again though, check out the best deals and you’ll likely end up saving some money. Doing it via the Internet is so simple, and everything can normally be arranged online.

If you can tie some of your savings up for a period of time, say two years, then the National Savings & Investments (NS&I) have bonds which will often earn a decent enough rate of interest, though they are rarely the best rates, but are at least safe.

If you can get hold of some money-off vouchers then you can make some good savings (sometimes even up to 50% off) at some restaurants. A nice way to not only eat out, but make your money stretch further.

Own branded products are cheaper than the big brands, so look for those when shopping in the supermarket. If you buy online you will sometimes see deals you won`t when shopping in the actual store. Some places give free delivery on shops over a certain amount. That way you save on petrol too. It also reduces the chances of window shopping, buying more than you need, or can afford.

If you pay separate providers for your home phone and broadband you may be able to pay less by having both from just one provider as a ‘package.’

If you pay for your energy bills quarterly by statement, think about changing to direct debit. It`s amazing how much discount you can get by paying automatically through the bank.

There`s a big difference between the amount of fuel a car uses when doing 70 mph and 50 mph. Try it for a while, where legal of course, and see the savings you`ll make on petrol or diesel costs. Making your money stretch further on fuel costs isn’t easy, but by changing some driving habits it can be achieved.

Going out is all well and good, but it all adds up. Stay in with a good DVD or book, listen to some music, enjoy time with the family at home, or invite friends round. Socializing by going out can be expensive, so if you do a lot of it think about staying in more.

Most of these suggestions aren’t rocket science, just simple measures that can mean your money will stretch further, and without too much hardship, if any.

Geoff explains some ways to save money on home jobs such as http://www.kitchenandhousewares.us/plumbing-problems-you-can-fix-yourself.php and has written other articles at http://www.ourhometools.com/articles.php

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