Each year the cost of many household utility bills keeps rising. Gas and electricity costs, the water bill and a number of other utilities such as broadband, telephone and TV packages have all increased in price. This would seem manageable but unfortunately the average household income has not kept pace with rising inflation. Fortunately, there are a number of ways you can save money on your monthly expenses. We have covered five of these below.
Switch energy suppliers
Due to static incomes in most industries and ever-increasing expenses, it’s more important than ever to find clever ways to save money. One of the best ways to save on your gas and electricity bills is to use an online energy comparison site to find a cheaper tariff. Sites like Utility Saving Expert allow you to compare a whole range of energy suppliers to find the best deal before you make the switch. Unfortunately, the same can’t be said for water companies. This is because you will most likely be dealing with one provider.
Credit cards, personal loans and other forms of borrowing
Credit cards offer consumers a lot of convenience when spending money. Most cards will give you a longer period to pay back what you owe, some offer 0% interest for a promotional period, while others allow you to do a balance transfer. If you do have a credit card, it’s important to clear the outstanding balance each month to avoid paying any unnecessary fees and charges. If this isn’t possible, transfer your balance to a provider that offers a much lower interest rate.
Ideally, credit cards should only be used when needed rather than an additional cash facility. The more you owe, the larger amount you will be paying in interest fees and charges.
It’s a similar story with personal loans, only borrow money if you actually need to. Think twice before purchasing that £50,000 luxury car, a vehicle costing one fifth of this amount will still get you from point A to point B.
Pay day loans and doorstep loans should be avoided at all costs, these are amongst some of the most expensive ways of borrowing and have ridiculously high interest rates attached to them.
Compare products and services online
The world wide web has brought great change and innovation to how we consume different products and services. These days if you see a price for something, you can instantly compare it against a similar item online before purchasing. You can do this for a whole multitude of things.
For example, it’s easier than ever to compare insurance policies and other household goods. Traditionally, you would see one or two offers in a store and go with which ever you thought offered the better value. You can now conduct a whole of market comparison to find the cheapest deal.
Broadband, TV packages and mobile phone contracts
As mentioned above, you can also compare internet service providers, TV subscriptions and mobile phone contracts to save money. Many internet providers will offer you a great deal when you first join but will often increase the monthly price once the promotional period has ended. At this point, it’s a good idea to see what a competitor is offering and consider switching. Your existing provider will normally try to match this price to retain you as a paying customer.
The story is similar for TV packages. Whether you watch live sports or like to stay up to date with the latest shows, competition in this space has vastly increased. You no longer need to subscribe to a satellite TV package, unless you absolutely need live sports. For movies and television shows, there are a number of streaming services that have thousands of hours of content. Some of the most popular options include Netflix, Amazon Prime Video and the recently launched Disney Plus.
As for mobile phone contracts, the latest and greatest phones now cost over one thousand pounds, making their contracts well over £60 per month. If you’re content with your current phone, a Sim Only deal can cost you much less. This is because you’ll only be paying for your minutes, texts and data usage rather than the handset. A good Sim Only contract will cost between £10 and £20 per month. If you do need a newer phone, consider buying it outright as you’ll pay less over a 24-month period. If this isn’t an option, manufacturers like Apple and Samsung even offer interest free instalments.
Buy only what you need
This may prove more challenging, but we’re consuming a lot more than we used to in the past. No wonder everywhere you look, there’s an advert for something. We’re not saying you need to live a life of minimalism, but buying things that you actually need can help your finances. The money you save from not buying unnecessary junk can be put towards something more important. For example, it could help you save for a new car, a family holiday or even retirement. Everyone has their own reason for saving.
Ultimately, the more of these tips you’re able to make use of, the more you’ll be able to save for the things that matter to you.