Monthly spending responsibilities can be relentless, accounting for your entire income, before it even makes it to the bank. From household bills to transport expense, it usually doesn’t take long to spend your paycheck.
Fortunately, you’re not without options when your finances falter. In addition to personal savings and credit cards, UK consumers rely on various short-term loans to correct cash flow shortfalls. The small, quick loans provide supplemental income between paydays, when money doesn’t quite stretch far enough to cover costs.
Brief periods of financial stress are a natural part of personal money management, but if you find yourself reaching too often for credit cards or leaning too heavily on loans, it may be time to make substantive changes to your finances. When your cost of living doesn’t balance with household income, look to these solutions for relief:
- Lower Housing Costs
- Impulse Spending Discipline
- Higher Household Earnings
- Money-saving Hacks for Frugal Living
Tips and Tactics to Make Savings
Saving money with assorted personal finance hacks and frugal tactics can help bring expenses in line with your income. Though you may not benefit from every cost-cutting strategy, it’s important to think outside the box for savings. When a cash crisis interferes with your financial flow, you can’t afford to be selective; consider these proven cost reduction measures for relief.
- Save With Family Packages – Remember when it was as simple as picking your plan and getting on with things? Things change dramatically with a partner and children in the picture. Before long, you’re responsible for multiple devices, subscriptions, and services, amounting to a significant monthly expense. If you’ve lost control of your communications, entertainment, and connectivity spending, family packages may be a source of savings for your family. Spotify, for example, allows families to enjoy individual accounts within a family package for only £14.99 per month.
- Get Help to Save – A government initiative for people on low income helps earners save more money. Help to Save is like a savings account, where deposits receive a 50p bonus for every £1 put by. Eligible participants are entitled to Working Tax Credit or may be on Universal Tax Credit. Each saver can take advantage of the government scheme for 4 years.
- Pay Less Interest – Credit card interest hangs like a weight on family finances; paying less interest each month can be a source of relief. If your household is like many in the UK, you’re paying interest on hundreds or thousands of pounds each month. At standard credit card interest rates, it’s an uphill battle reducing and ultimately eliminating balances. It may be possible to save money with a zero-interest balance transfer deal, but you have to read the fine print and do the maths. With the right zero-interest deal, you may be able to wipe your balance in a fraction of the time you’d pay with monthly interest charges added to your current card.
- Remortgage for Savings – House owners typically carry mortgages, often representing an individual or couple’s most significant outstanding debt. The stakes are high with hundreds-of-thousands of pounds on the line, so your mortgage can be a source of savings. Remortgaging to a cheaper deal can save thousands annually. It’s up to you to explore mortgage options and compare rates; under the right conditions, it may be possible to save money every month, just by switching to a cheaper mortgage.
- Shop Renewals – Renewing service contracts is easy enough, but you may be leaving money on the table each time you renew. Insurance, for example, seems to rise every year, costing more for home insurance, car insurance and even annual travel insurance. You can’t do away with all your cover, but you can negotiate better rates at renewal time. Before contacting your current carrier, do your own research, studying online rates for better deals. Your provider may be willing to match another company’s offer, just to keep your business
Creativity and commitment yield savings at home. These are only a few of the ways to tighten your household budget and save money each month. For results you’ll feel in your pocketbook, start with these tips and then add your own money-saving insight.