Top tips to cut costs and boost savings.

15th August 2016

WEALTH at work, a leading provider of financial education in the workplace, supported by guidance and advice, shares some of its top tips for individuals wanting to cut their costs and to boost their savings:

1. Do you know where your money is going?
Individuals should check their bank statements and make a list of what they are spending each month. It is helpful to divide these into utility bills (gas, electricity and water), mortgage or rent costs, council tax, supermarket shopping, monthly contracts for TV, broadband and mobiles, insurance, regular subscriptions, and other spending. This will highlight where your money is going and where savings could be made.

2. Compare utility providers
Individuals should consider visiting comparison sites to find out which providers may be the most cost effective for them. For example, utility savings could be approx. £440* a year.

3. There are great discounts on online supermarket shopping
Another way to save money is to consider getting your food shopping delivered. Not only can this save money as it can remove the temptation of buying items in store which aren’t actually needed, but many supermarkets also have offers such as £20 – £30 off a first order. For example, £70 can be saved on £280 worth of groceries**.

4. Is the latest mobile phone really needed?
Individuals could consider a SIM only deal rather than upgrading to the latest phone if their phone contract is coming to an end. With a contract, individuals are effectively borrowing money for the phone, and repaying this loan through a monthly bill. Also, tariffs should be checked as there are some very competitive deals available.

5. Regular contracts should be reviewed
Are you making the most of the subscriptions you have? Could you cancel music and other services that you’re not using? It may be worth calculating how much you spend on these types of contracts and see how much of a difference cancelling these may have on your finances.

6. Watch out for auto-renewals
Many insurance policies for car, home or holiday, automatically renew each year but individuals may not be getting the best deal if they allow this to happen. For example, drivers who auto-renewed paid up to £113 more on the cost of their car insurance cover***. To get the best deal and to avoid any potential price hikes with auto-renewal, make sure you shop around and switch where appropriate.

7. Staff discounts
Are you making the most of any staff discount schemes? By signing up to a workplace discount scheme, you could get discount codes to high street stores or buy reloadable store gift cards, which would allow you to buy the credit at a discounted price.

Jonathan Watts-Lay, Director, WEALTH at work, comments; “Learning how to manage money is important whether you are in employment, or approaching retirement.  The lessons learnt on how to save money on bills, managing spending and debt and the importance of saving, can save a fortune over a lifetime.”

*Comparethemarket.com – £439.59 was the average annual saving from energy bill switches by area in January 2016.

** Sainsburys £20 off first order (£100 minimum spend), Waitrose £30 off first order (£100 minimum spend), and Ocado £20 of first order (£80 minimum spend).

*** Moneysupermarket.com – Research has shown an estimated 23% of drivers (over six million motorists) auto-renewed last time around and paid up to £113 more than they had to on the cost of their cover.