The average credit card debt per holder now stands at $2,200, and with retailers experiencing a drop in sales that hasn’t occurred in twenty years, it’s evident that consumers are tightening their budgets. In essence, it is time to repay.
To eliminate a $2,200 debt on a card that charges approximately 15% interest may require over two years if you commit to a monthly payment of $100.
Nonetheless, many straightforward methods can lead to substantial savings on your routine expenses, potentially allowing you to pay off your debt in less than a year.
We have compiled more than 40 clever strategies to assist you in saving money.
1. Adjust your perspective towards your mortgage
Your home is likely to be your most costly investment. If paying cash isn’t an option, ensure that the financing you choose is the best one available. For instance, if you are paying your lender’s standard variable rate (SVR), you could be losing hundreds of pounds each year.
With thousands of deals on the market, checking the fine print for hidden fees is crucial, but it’s a relatively simple way to save a significant amount. Keep in mind: showing loyalty to your bank mainly benefits them, not you. If possible, making overpayments on your mortgage could result in clearing your debt several years earlier, leading to massive savings. For example, borrowing $100,000 at a rate of 6% over 25 years requires a monthly payment of $643, culminating in a total repayment of $93,000. However, by overpaying $100 monthly, you could settle the loan in under 19 years, resulting in six years mortgage-free and a notable saving of $25,000 in interest.
Potential Savings: $1,000s
2. Eliminate your credit card debt
A fundamental principle of financial planning is to address your most expensive debts first, which are usually your credit cards. While credit cards provide a convenient payment method, if you find it challenging to pay the full balance each month, consider switching to a low-cost loan instead. For instance, a $2,200 credit card debt at 15% APR over three years incurs $545 in interest, whereas a 6% loan would only total $209 in interest, representing a saving of $336.
Potential Savings: $100s
3. Reduce your fuel bills
With global energy demand at risk of surpassing supply, prices are on the rise. However, you shouldn’t have to face excessive charges. The domestic fuel market is competitive, and switching suppliers can be as easy as a few clicks online. The new provider will handle the transition, and you’ll find yourself paying less each month.
Potential Savings: $100
4. Think about installing a water meter
We often take our tap water for granted. And rightly so! Water supply companies are profit-driven, just like any business, so you have every reason to expect consistent supply. However, dry spells can result in increased costs. Therefore, consider the option of installing a water meter. If your home is large and there are only a few occupants, you might be astonished to discover that you could reduce your annual bill by half.
Potential Savings: $100s
5. Reduce your home phone bills
While Telstra may appear to operate as a monopoly, it certainly isn’t one. If you need to use your phone, numerous lower-cost alternatives exist. From cable companies offering packages that include phone, television, and broadband services to economical dial-up solutions that allow you to make cheaper calls on your existing Telstra line.
Potential Savings: $100
6. Consider switching to a pay-as-you-go mobile plan
Ask yourself this: Is having a mobile phone absolutely necessary? If the answer is affirmative, evaluate whether you truly require all the included minutes and texts that come with your current package.If you pay your mobile phone company $50 monthly, that accumulates to $600 annually, which is approximately $1,000 of your gross salary. However, you have the option to purchase a pay-as-you-go phone for as low as $30 and only pay for the occasional call as needed.
Saving: $100s
7. Create a shopping list
A considerable portion of our monthly expenses comes from food shopping, and grocery stores are where the majority of our money is spent. For example, Tesco captures $1 of every $8 spent by UK shoppers. However, be cautious, as stores invest heavily in strategies to encourage us to spend more than we intended. Have you ever thought about why your favorite song plays in the background while you shop? You might not have noticed the background music, yet you may have realized that your checkout total often exceeds your expectations. To avoid this, simply prepare a shopping list. Refer to your cookbooks, plan some meals, and purchase only what you require.
Saving: $10 a week = $520 a year
8. When did you last visit a market?
An effective strategy to avoid supermarkets—while eating healthier on a budget—is to shop at your local market stall. With lower overhead costs, you can expect lower prices. As of this writing, cherries were priced at $2.99 for 400g in supermarkets, while the local market offered them for just over $1.
Saving: $100+
9. Think about choosing own-brand products
You can purchase a can of supermarket own-brand baked beans for 34 cents and a loaf of bread for 49 cents. That’s really all that needs to be said.
Saving: $100
10. Avoid purchasing designer labels
Celebrities receive costly clothing for free. You don’t have that luxury. Ultimately, if you might only wear an outfit once, can you rationalize spending hundreds of pounds extra just because a top designer’s name is stitched on the label? And can you genuinely identify any difference from a distance between a $600 designer handbag and a $9.99 bag from the market? Reflect on that.
Saving: $100s
11. Sell your unused items on eBay
Perform this quick test: Open a cupboard at home. Check inside. If it’s packed with clothes you haven’t worn or unused “good ideas” from three years ago, then you don’t need them. Why not sell them to someone who would? eBay allows individual sellers to reach a broad buyer base, enabling you to sell virtually anything for a small commission. A tip: consider purchasing a few items first to boost your rating as a reputable eBayer before diving into selling.
Income: Will vary based on your cupboard contents
12. Utilize your skills for extra earnings
Let’s be honest; if you haven’t become a pop star by your 20s, the chance is slim. However, you could leverage your skills as a guitarist to teach aspiring musicians the basics of the 12-bar blues.
Income: Charging $20 an hour is quite reasonable
13. Engage in DIY projects
As a nation that loves DIY, for about $100, you can enroll in a course at your local adult education center to acquire skills necessary for handling most home repairs. If plumbing courses are available, you could soon be on your way to eliminating expensive call-out fees and excessive insurance premiums for good.
Saving: $100+
14. Compare prices for the best household insurance
Unless you drive—where car insurance is mandatory—you don’t have to carry insurance. However, it’s highly recommended. Can you afford the cost if your house were to burn down? Likely not. Furthermore, can you justify paying significantly more for the same policy offered elsewhere just because you couldn’t be bothered to shop around? Perhaps, but it’s not wise. The internet has simplified the process of finding cheaper insurance, allowing you to compare hundreds of policies in mere minutes.
Saving: 15. Avoid automatic renewal of annual travel insurance
If your annual travel insurance policy is nearing its expiration and you have no holidays planned, DO NOT renew it. You’re essentially throwing away money to cover an event that is unlikely to occur. You wouldn’t maintain car insurance if you didn’t have a car. Simply reactivate your coverage the next time you arrange a trip.
Saving: $50
16. Opt for more affordable breakdown insurance
The breakdown service providers are primarily dominated by well-known brands such as the AA and RAC. However, being towed home when your vehicle breaks down is merely another type of insurance, and there are plenty of more economical options available.
Saving: Up to $100 a year
17. Are you overpaying for life insurance?
We are living longer lives, which means that the cost of insuring against unforeseen events is decreasing. If you secured a policy during the stressful process of obtaining a mortgage, you may have neglected to shop around. You could be missing out on better deals.
Saving: $100
18. Make your bookings in advance
Budget airlines have created a demand for affordable holidays for travelers willing to fly anywhere, provided the price is right. You can take advantage of this as well. Just bear in mind that only a limited number of seats on each flight are sold at the lowest rates, and once they are gone, prices go up. So, plan to book in advance.
Saving: $100
19. Create your own ‘package’ holiday online
As more people discover the advantages of researching and organizing their own trips online, traditional travel agencies are losing popularity. If your holiday entails flights, accommodation, transfers, and maybe car rental, take this challenge. Request a brochure from a popular holiday provider and calculate the total cost, including all the added fees. Then, go online and attempt to assemble the same package starting with the flights.
Saving: $100+
20. Practice saying ‘no’
It’s easy to give in to the demands of a yelling child in a crowded store on a weekend. But resist the temptation. Similarly, how frequently does a quick drink after work escalate into a $40 night out? Declining a few times each year can significantly improve your finances.
Saving: $100
23. Avoid paying full price for theater or theme park tickets
If you can manage the clunky website and sometimes inconsistent customer service, there are websites that often feature fantastic discounts for theaters and theme parks.
Saving: $100s
24. Outsmart ticket scalpers
Ticket scalpers thrive by securing tickets that seem “unavailable”. Here’s the secret: they are obtainable by everyone when they first launch for sale. You just need to know the exact timing of the release. Subscribe to free ticket alert newsletters from major agents to make sure you’re first in line.
Saving: $100s
25. Stop the competition with the Joneses
Trying to maintain appearances is simply an expensive trap. Remember, you can’t judge someone based on their possessions because you do not know their backstory. They could very well be deeper in debt than you.
Saving: $1,000s
26. Downsize your vehicle
So, you impulsively purchased a sports utility vehicle (SUV) that only gets 15 miles per gallon. We’re all quite impressed – especially with the customized plate. But can you genuinely justify the ongoing costs? If not, it’s time to sell it. Then head to a car supermarket, where you can select from thousands of vehicles at discounted prices. If you’re a real saver’s champion, consider buying an ex-rental vehicle, which you can find for a fraction of the price of a new one.
Saving: $1,000s
27. Reflect on whether you…Do I truly need this?
Picture this: it’s lunchtime, and you have an hour to spare. You’re wandering through a department store and happen to spot a sale. You grab an elegantly packaged set of barbecue tools along with some garden accessories, and they’re half off. But wait! Ask yourself: Do I truly need this? Exactly. Now, set it down and walk away.
Saving: $100
28. Walk or cycle to work or the station
This might appear as a bit of a hippie idea to some, but it’s completely free.
Saving: $100
29. Disembark at an earlier station and walk
Though we are creatures of habit, isn’t it worth adjusting our routine if it results in over $50 in unnecessary fares each month?
Saving: $100
30. Reduce your alcohol consumption
Having a few beers after work a couple of nights each week can severely impact your finances. Set limits and adhere to them.
Saving: $100s
31. Quit smoking
Apart from the health risks, the guilt, and the odor, your habit of smoking 20 a day could cost you nearly $2,000 annually. It’s time to quit.
Saving: Nearly $2,000
32. Terminate your gym membership
If you’re paying $40 monthly via direct debit and visiting the gym three times a week, that’s fantastic. If not, cancel your membership immediately. You’ll have enough savings to purchase your own bike or even a rowing machine. Also, consider running home from work a few times a week—it’s free.
Saving: $100s
33. Take advantage of your library
Your local library is a treasure trove for budget-conscious individuals. You won’t ever have to buy another cookbook, guidebook, or lifestyle manual, and if you can wait patiently in line for the latest bestseller, you’ll never need to purchase books again. They also offer great value for CDs and videos.
Saving: $100
34. The three-for-two strategy
There’s definitely something to appreciate about buy-one-get-one-free promotions, especially if they pass the ‘Do I really need this?’ test. Then there are three-for-two deals; a rather crafty method retailers use to encourage shoppers to pick up an item they may not have intended to purchase. The cost of the ‘deal’ is always baked into the price, so calculate wisely and compare prices.
Saving: It’s a matter of principle
35. Purchase clothing and gifts during sales
In need of a new suit priced at $300? Hold on! The likelihood is that you can find it for $150 during a sale—there’s always a sale coming up. The same goes for birthday and Christmas gifts. By shopping in bulk during sales, you not only save some cash but also enjoy hassle-free holidays with no last-minute gift shopping.
Saving: $100s
37. The Christmas gift lottery
Instead of striving to buy a gift for every family member, think about collaborating with relatives beforehand to draw one name from a hat. This way, you’ll buy one meaningful gift for that individual rather than stretching your budget to please everyone. Everyone receives a gift, and all save money in the process.
Saving: $100
38. The National Lottery – it’s probably not going to be you!
The odds of hitting the Lotto jackpot are a staggering 14 million to 1 against each ticket. Some highly organized syndicates purchase 14,000 tickets weekly, which brings the odds down to 1,000 to 1—but it’s still no guarantee. For the majority of us, the difference in odds between buying 10 tickets and just one is so minimal that it’s best to stick with one and save the extra money in a savings account.
Saving: $100
39. Saving $50 monthly now could lead to $120 next year
Are you paying your insurance premiums in monthly increments? If that’s the case, consider this: you might be facing a premium surcharge that ranges from 15% to 20% for that convenience.To put it differently, if your car and home insurance for the year totals $600, opting for monthly payments means you could be incurring around $120 in interest annually. However, if you have the capacity this year to set aside funds for next year’s premiums ahead of time, you stand to save money by making a single, comprehensive payment.
Saving: $100+
40. Ditch the ready meals
If culinary personalities like Ainsley Harriott can whip up a dish using an assortment of groceries, including an aubergine and a packet of sultanas, you can certainly do the same. While ready meals offer convenience, making your own dishes helps you save money. A trip to your local library will uncover numerous books focused on preparing quick, delicious meals.
Saving: $100+
41. Engage in a money-saving hobby
Not only do hobbies introduce you to new experiences, but they also occupy your time—crucial if you would otherwise find yourself spending it at the pub, draining your hard-earned cash. Suppose it takes 20 hours to finish a painting, and you typically consume a pint each hour; that results in savings of at least 40 pounds per artwork. Consider this. Get into painting. Try fishing.
Saving: $100+
42. Steer clear of the payment protection scams
Banks and other financial institutions often peddle pricey insurance policies meant to cover loan repayments to individuals who may not require them. Make sure you don’t fall for the aggressive sales tactics.
Saving: $100
43. Skip the extended warranties
Modern electrical products are generally more dependable than ever before. If your new radio cannot withstand three years of use, perhaps it was not worth the purchase initially. Think about it: how often has your refrigerator conked out in the past five years? And do you truly want the inconvenience of filing repair claims for a $15 toaster?
Saving: $100
44. Shop online
The digital world is steadily taking charge. Online grocery shopping is continually improving, and various comparison websites are available to assist in discovering the best prices for larger items. Give it a shot, unless of course, you prefer battling through the throngs in a supermarket.
Saving: Your sanity
