Five money-management tips to maximise your spending and saving power
Did you know that, according to Money’s 2024 UK Savings Report, 82% of people surveyed across the UK were turning off lights in a bid to save money during the cost-of-living crisis?
Or that 70% were trying to save money by putting electrical goods on standby, and 64% by eating out less than usual?
The economy might be rough right now, but there are plenty of practical ways to maximise your spending and saving power. Here, we share five money-management tips that could make your money go further in 2024…
Due to a limited choice of deals, now might not be the best time to switch suppliers but it’s still a good idea to shop around to see if you can save. You could try a price comparison site like MoneySuperMarket to see what’s out there.
If your direct debit has gone up and you aren’t sure why, ask your supplier. (A quick note: your direct debit is not your energy bill. It’s a set amount your supplier takes from your bank each month to cover your energy usage, and it can go up or down.)
If you don’t agree with the increase and believe your current direct debit amount is enough to cover your energy usage you can request for it to stay the same. Still feel you’re paying over the odds? Let your supplier know. They may provide a support scheme.
What about reducing your energy usage? If you’re looking for more energy-efficient ways to heat your home, you could control which rooms you want to heat and when. Use timers and consider turning your thermostat to a lower temperature. Which? estimates that by turning your thermostat down by just 1 degree, you can save £100 a year. More money to top up your ISA or put towards a holiday.
MoneySavingExpert estimates that 16 million people are out of contract on their broadband. You might be able to save by looking at other suppliers.
In fact, by using a broadband comparison site, MoneySavingExpert estimates you could potentially save up to £200 a year.
While we’re on the topic of internet, don’t forget to check your phone tariff too. Are you paying for unlimited data that you don’t need? If you’re out of contract, consider switching to a lower-data tariff. They’re generally cheaper.
If you have a big financial goal you want to achieve or you’re simply trying to make your money go further, you might like to track your day-to-day spending.
You could record everything you spend money on from one day to the next in a notebook, on a spreadsheet, or in an app like Plum or Money Dashboard. You might also like to categorise each item to give you an accurate idea of where your money goes.
Tracking your spending can help you cut out unnecessary spending and identify areas where you can save. It’s not about being perfect or trying to eradicate all your discretionary spending, but about gaining awareness of how you spend.
With the data in front of you, you might realise there are other - potentially better - ways to manage your money like investing it, saving it in a high-interest savings account, or simply cutting back a little on your ‘eating out’ spend.
Direct debits, standing orders, and recurring payments can be easily missed if you aren’t paying attention. But these regular payments add up and you may have outgrown some of them.
Maybe you no longer need a gym membership, or it’s been ages since you logged on to that streaming platform you pay £10.99 a month for. Make a list of your regular payments and assess whether you still want or need them.
A monthly review of what regular payments are going out of your account could help you save, giving you the option to put that money towards something better.
An ISA is an Individual Savings Account that allows you to make tax-free savings up to an allowance of £20,000. If, by following some money-management tips, you’ve found you have a little extra to spare, you could consider putting it an ISA before the tax year ends on April 5th.
And if you don’t already have an ISA? Consider opening one. There are different types to choose from depending on your needs. They include easy access, junior, fixed rate, and notice.
If you have children, you could open a Junior ISA for them. Junior ISAs have a different tax-free savings allowance of up to £9,000 – so you can increase your spending and saving power as a family.
More information on the different types of ISAs can be found on our Cash ISAs information page.
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