It always feels good saving money. But at times like these it pays to be extra careful with your expenses. So here are a few tips, which if applied, will save you cash. Crunch accounting review
Make a Budget
You cannot expect to know where your money is going if you don’t make a budget. Track what’s coming in from your salary, interest in your bank accounts and any investments you have. Then do the same for your outgoings, mortgage or rent, utilities, food and entertainment, insurances for your home and its contents, your car and any other insurance cover you’re carrying.
In tough times you might feel like you can do without insurance on some things, but it’s at times like this that you really need to keep certain insurance cover to protect you from emergencies.
Once you know what’s coming in and going out, you’re then in a position to adjust accordingly. Hopefully, your incomings are larger than your outgoings. But many people are finding it difficult at this time.
There are several comparison sights out there on the internet these days, so it’s relatively easy to find mortgage choices. Check around for the best rates.
If you have the spare cash sitting in a bank account, you might want to pay off some of the mortgage. This will reduce your total interest amount, possibly saving you thousands over the term of your mortgage. Just make sure there are no penalties for doing so.
Bank savings interest rates are pretty low at the moment whilst some mortgage rates are still relatively high. So it makes sense to use the money earning low interest to pay off a mortgage with higher interest.
Turning down your thermostat a degree or two can save you big over the course of a year. That goes for water temperature also. Making sure your home is properly insulated prevents draughts and therefore saves money too.
Unfortunately, loyalty to utility companies doesn’t pay off. The best deals always seem to be available for new customers. So it pays to check prices and change to the cheapest provider annually. The same goes for bank accounts, insurance, phone, broadband and mobile deals. It pays to shop around.
I know several people who live beyond their means, usually by living off maxed out credit cards. The amount of interest they are paying to the credit card company is staggering.
Lots of people want to enjoy life NOW. They don’t want to wait to buy something or take a holiday. I understand that feeling. But it’s precisely that feeling of wanting something now, when you can’t really afford it that has got the country into the awful financial mess we find ourselves in now.
The current housing disaster was caused by too many people taking on too much debt. And the irresponsible banks who were willing to hand out too many loans to people who couldn’t really afford them.
I’m not here to preach, but by maxing out your credit card and not paying off the total amount every month, you are making the credit card companies very happy. And by paying off only the minimum each month, it will take years to pay off the debt. So you’re effectively throwing money down the drain, month after month, year after year.