As the New Year approaches, many people inevitably make resolutions to save money and get rid of their debt.
It’s easier than you think when you know a few easy and effective ways to save money throughout the year, such as by reducing the costs of your regular payments and taking advantage of annual discounts.
If you want to get 2020 off to a flying start and save money on your bills, read on to find out how you can do this and still enjoy the services and products you love.
Find out how much you’re currently paying
When you have several debit orders coming off your account every month, it’s easy to lose sight of exactly how much you’re paying for each product or service. First review how much you spend every month on what. Then you can see which costs are vital and which can be reduced or removed. You might even find yourself still paying for subscriptions you thought you’d cancelled, or for services that you don’t need anymore, so you can immediately take action to clear those costs from your budget.
Consider which bills are necessary
Now that you’ve worked out what you’re spending on your bills, think about which of them you actually need to pay and which are unnecessary expenses. Some activities, like having your nails done, getting your car cleaned professionally, or paying someone to do basic chores like your ironing, can be considered unnecessary costs that you can get rid of simply by doing these tasks yourself.
Set up standing orders if you haven’t already
Most service providers charge late payment fees, so consider setting up standing orders for your regular payments if you haven’t already. This could save you a fortune in late payment penalties over the next 12 months, not to mention the time you’ll save because you don’t need to worry about making manual payments anymore.
Review price comparison sites
Finding the best price across a range of providers can be a challenge, but if you use price comparison sites, it takes out the hassle of finding a provider with lower costs and good service. For example, if you’re looking for a life insurance policy, you shouldn’t just take out the first one you find; it is a major life decision and is worth careful consideration. This is where a comparative life insurance site can come in handy. This kind of site will compare different insurers and offer useful information on the different types of life insurance, which is worth a read if you aren’t sure which to go for.
Reduce your personal debt
Debt is a big problem for many individuals, largely due to the interest you pay on top of the money you owe. Some loans, like mortgages, are necessary, but others, like store accounts, often aren’t. Try to find ways to reduce your personal debt to allow you to save or spend money on what you love rather than paying it all to your creditors. Depending on your circumstances, you might be able to consolidate your repayments into one loan, which can reduce the overall interest you pay on your debt.
Look out for New Year deals
After the festive period, many businesses offer discounts on their goods and services, either because they ordered too much stock and need to get rid of it or they’re looking to generate new customers at the beginning of the year. Consider taking advantage of these deals if there is something you really need.
Also look at service providers offering new-customer deals to see if these can save you money, but remember to consider how much a particular policy, subscription, item, or service will cost you in the long term. You might save money for a few months, but if the price will rise in the future to become more expensive than what you’re currently paying, it isn’t worth buying.
Combine bills to save money
Some businesses offer multiple products and services, and if you purchase more than one through them, they may offer a discount for combining them. For example, many banks offer other financial services, such as insurance, investment services, and loans, so find out if any of your service providers will offer you a special price for combining products. This will also help you save time as you’ll only need to communicate with one service provider rather than several.
Put your negotiation skills to the test
Learn to haggle with your service providers so you can save money while still getting the same services you currently enjoy. Negotiating can help you reduce monthly costs and even potentially allow you to add additional solutions to your package without paying more money. When negotiating, stay calm and measured, but also be clear that you want a better price, particularly if you’re already a loyal customer.
Saving money on your bills takes time and research, but it will be worth it when you’ve got more savings, less debt, and some disposable income to spend on activities you enjoy. Refer to these tips to start saving money in 2020!