1. What’s the best way to save if you don’t earn very much (£20-£25k)?
The theory goes that you should spend 50% of your monthly budget on essentials like housing and food, 30% on lifestyle - living and going out and the final 20% on financial priorities such as paying off debts or paying into savings. Paying off the debt has to take priority over the savings as any borrowed money is expensive. When you are clear of debt, it is never too early to start some kind of savings account for the future.
Then the rule is the same whatever your salary - drip drip drip… little and often.
My parents, a teacher and a policeman, put twenty pounds each month into savings accounts for my sister and I from the day we were born. On our twenty first birthdays we had enough for a deposit for our first flat. Now apart from showing how very old I am, it just shows that the smallest amount easily builds into something significant so long as you start today, pay in regularly and **DONT TOUCH THE MONEY! **
P.S If you feel there is really nothing left at the end of the month to save and that your budget is as tight as it could be, why not look at switching just one of your household suppliers. TalkTalk are £184 a year cheaper than their nearest competitor for broadband alone. That’s £15.33 a month that could be going straight into a savings account and even more if you take their mobile and TV products too.
2. How do you know which energy providers are the best, and which should be avoided?
There are two things that matter with your energy provider. Cost and cost. Of course it would be rather nice if they would answer their phones or respond to your bill queries but frankly I would go for a cheaper bill and try and avoid calling them! It couldn't be easier to find the best provider for you and your family…. there are several websites that have done all the legwork and will spell out the options.
There are three things that I would consider:
Firstly look at how you pay for your energy. Most providers give a discount for paying by direct debit and will also charge more for customers on prepayment meters.
Secondly, make sure you are with the best value provider. Get your last years energy bills in front of you and go on to a comparison and switch website such as www.uswitch.com or switch.which.co.uk as well as the reliable www.moneysavingexpert.com and www.moneysupermarket.com. If you haven't switched for a while you will probably find that it will take you one hour on the computer to complete the transaction and you will be a couple of hundred pounds a year better off!
I switched companies last year to one I had never heard of and not only have I saved £190 a year but I am thrilled with their straightforward and super-friendly customer service!
3. I always spend too much on the weekly shop – how can I get what we need without overspending?
This is one of my new years resolutions so I am happy to share with you the plan of action that I am determined will reduce my costs and waste.
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Budget - Start by planning a typical shop writing down the prices of everything - don't leave anything off. Start with essentials, milk, veg, meat. Work out exactly what you are going to feed the family, mix up the meals in terms of cost - e.g. one steak dinner, one lentil curry. This is the most boring bit but it will give you an approximate budget.
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Go onto www.mysupermarket.com and compare your shop across the major supermarkets, Tesco, Asda, Waitrose, Aldi, Morrisions etc. This is the year of the challenger switch. From supermarket to broadband and mobile provider to your long standing bank account you need to get out of your rut, shake it all up and switch so that you are getting the best deals across the market.
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Planning the week aheads menu seems a little boring but it really does cut down on waste. The average household wastes £470 on food and drink every year, that’s around £60 a month. Every time I write that figure, I double check it as it is just so shocking and completely unacceptable.
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Once in the supermarket - do not go off the list and try and use a basket instead of a trolley. If you have to use a trolley, use a small one! It sounds obvious, but if you are like me then you will keep adding extras until you are full. I also find that leaving the car at home might make the experience a little more painful but it definitely makes me buy less.
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Don’t forget to use your loyalty cards and tokens there are significant savings to be had. I have to pin my active tokens on a notice board by the shopping bags as I kept forgetting about them until they had expired.
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