How to spend less and save money

Friday January 15 2010, 2.34pm, The Times

Pound coins in Bristol, England.
MATT CARDY/GETTY IMAGES

Friday January 15 2010, 2.34pm, The Times

Want to keep your household bills to a minimum, take a holiday on a shoestring, or reduce the cost of insurance?

Here are ten tips to help you cut back on your spending and links to more money-saving advice.

1. Food

Be thrifty in the kitchen and make use of your leftovers. The love food hate waste campaign has some recipe suggestions. Alternatively check out Timesonline’s seven supersaver suppers.

If you’d prefer a cheap meal out, try downloading restaurant discount vouchers available online. Vouchercodes.co.uk keeps track of the latest offers.

2. Energy

Switching supplier is of limited use if your home is not energy efficient. The Energy Saving Trust’s Home Energy Check details basic measures that can save hundreds of pounds a year. Paying by direct debit can also bring substantial savings.

You can complete a questionnaire about your home and find out how much money you can save on energy. Once you’ve carried out the check read our guide on How to switch energy supplier.

3. Mortgage

If you are benefiting from lower mortgage rates, you could consider overpaying each month. Overpaying your mortgage will improve your equity position, reduce your interest payments and can shorten the length of your mortgage. But, unfortunately, overpaying one month doesn’t mean that a payment can be missed the next.

Check out our guides on what to do if you cannot pay your mortgage, how to avoid repossession and how to remortgage if you are worried about your mortgage repayments.

If you want to know whether it is cheaper for you to rent or buy, have a play with our mortgage calculator

4. Car

Save money by finding cheaper car insurance. Insurers bump up prices if they think your car is vulnerable. If possible, park your car in a garage or, failing that, driveway. Also install a Thatcham-approved alarm and immobiliser.

For more tips check out our suggestions on How to cut the cost of your car insurance and our 10 tips to cut the cost of car insurance.

5. Mobile Phone

Getting the best-value tariff relies on you knowing what pattern of calls, texts, voicemail and other services you are going to be using.

Take out a pay-as-you-go package for a short time with an itemised bill, and then analyse your mobile usage after a couple of months, before you commit to an 18-month contract. Find how to get a better mobile phone deal for more cost-cutting ideas.

6. Broadband

The best way to find the right deal is to use an online comparison service, such as broadbandchoices.co.uk or moneysupermarket.com/broadband. Most of these websites start by asking where you live, because some internet service providers (ISPs) do not cover all areas.

For more tips on broadband, check out our beginners guide to broadband and ten tips to increase the speed of your broadband connection.

7. Holiday

For a more unusual and less expensive way to find accommodation abroad, try international hospitality exchange websites, such as CouchSurfing.com and HospitalityClub.org.They allow members to offer a few nights’ accommodation on a spare bed or sofa, or the chance to meet for coffee or a meal in exchange for a promise that you’ll offer the same for those who fancy a trip to Britain. All users have a profile page stating what they can offer and when, with information on themselves and comments – de facto references – from other members.

To get there on the cheap, try looking on websites such as skyscanner.net and opodo.co.uk, which track the best budget flight deals. However, make sure you read our Twenty reasons never to fly with Ryanair before you hand over your credit card. Hidden charges can add up.

For more tips on holidays on a shoestring, check out our advice on how to have a cheap holiday or our best last minute travel deals and bargains.

8. Travel

For travel within Britain consider taking the train. Buying tickets in advance can knock a substantial amount off your rail fare, though bear in mind the cheapest fares are subject to availability and sold on a first come, first served basis.

You can see what is on offer at thetrainline.com or nationalrail.co.uk.

Railcards can reduce your fare by a third. Those aged 16 to 25, or 26-plus and in full-time education are eligible for a 16-25 Railcard, which costs £24 a year. See 16-25railcard.co.uk

If you travel with at least one child, you qualify for a Family & Friends Railcard. It costs £24 for one year or £65 for three years and gives one third off most adult fares and 60 per cent off most children’s fares. Up to four adults and four children can travel on one card. See familyandfriends-railcard.co.uk

Those aged 60, or over, can save a third on most standard and first-class rail fares with a Senior Railcard. The card costs £24 a year, or £65 for three years. See senior-railcard.co.uk

For more tips see our guide on how to find the cheapest train tickets.

9. Clothes

Label-lovers can swap items they are bored with for new pieces, via websites such as Whatsmineisyours.com and Swapaholix.co.uk. There are even parties, known as swishes, where label-swapping is rife: go to Swishing.org to find out if there is one in your area.

For more tips check out our 10 ways to get designer fashion for less.

10. Shopping

Before you part with your cash check out freecycle.org, as you might find what you need free. Members of the Freecycle network list goods they no longer want, which other members can collect from them, saving on disposal costs, as well as reducing the amount sent to landfill. Items range from sofas and rugs to cars. Free items are also listed at gumtree.com and our list of 50 great things you can get for free is worth a glance.

And remember to scour voucher websites for the latest deals. Try myvouchercodes.co.uk , voucherstar.co.uk , or discountshoppinguk.co.uk. Compare prices at sites such as kelkoo.co.uk and price-runner.co.uk

Further reading

Five news stories

Water companies told to spend less and pass benefit to customers

Hopes rise for energy price war

Where holidaymakers get more for their money

Savers to benefit from rate rises

Credit crunch costs average Briton £40,000

Five features

The best last minute travel deals and bargains

Low-cost way to get high-tech gadgets

Switch your services and boost your finances