5 Money Saving Tips

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In the current cost of living crisis, you need to manage your money smartly. Here are some simple money-saving tips to get you started- Try paying off your most costly debt first, cancel unwanted subscriptions you don’t need or are not aware you are paying for, don’t miss out on entitled benefits, turn off water and electricity at home, and go a week (if possible a month) without non-essential purchases.

1. Pay off most costly debt first

One of the biggest ways you save money every month is by paying off your debts, especially if you’re paying interest on multiple debts. There are smart ways of making all your debt repayments and still have enough money to save, save, save.

Move the debt to a 0% balance transfer offer credit card where you may pay an initial fee but still save hundreds a year on interest repayments.

If you have large debts across multiple credit cards, debt consolidation to a loan may be the word of the day. For example, instead of paying on average 23.9% APR on your credit cards, you can consolidate them into a personal loan and pay on average 5% (subject to the lenders’ approval).

If your debts are spiralling out of control, you’re not alone and it’s never too early or too late to seek help. Take the first steps to regain control of your finances by speaking with debt finance charities who will be willing to work with you and your finance provider to come up with a plan.

As you progress with regaining control of your finances, you free up more money every month than you would otherwise if you tried paying down all of your debts at once. While you will still be expected to keep making all your monthly payments, focusing on your costly debts and doing the minimum for your least expensive debts is the best strategy to save money.

2. Cancel Unwanted Subscriptions

Many people are paying over £300 a year on subscription services they don’t use or need. This includes money spent every month on streaming subscriptions like (Netflix and Disney), gym memberships, Amazon prime, and many more other services. To start saving money, take a hard look at all you are paying for and the things that you may have forgotten you are paying for and cancel your subscriptions.

Start by asking simple questions. How often are you using these services? is the amount you are paying every month/year worth it? Cheaper alternative services? For example, instead of having an individual Netflix, Spotify, and Amazon prime subscription which will cost you on average £300 a year. A single Amazon Prime subscription can give you access to streaming, music and shopping for £96 a year (that’s an instant saving of over £200).

Knowing the subscriptions you are paying for and trying to cancel or downgrade to a cheaper plan is a good start. However, are there services you didn’t know you were paying for? Check your bank statements or use apps like money hub to help you categorise all your spending data.

Subscription services

If all the above is just too complicated, why don’t you try and get this right from the start and never lose money? Using the ScribePay Virtual card to pay for your online transactions and subscriptions makes sure you never pay for services you don’t need or are unaware of as you approve or decline any payment attempts in real-time.

3. Instantly save money through entitled benefits

Benefits are typically frowned upon and people think you are only eligible if you don’t have a job. Many people leave on average £500 a year of entitled benefits simply because they don’t think they are eligible. Here are some quick instant money-saving tips to take what is rightfully yours.

Marriage Allowance lets you transfer £1,260 of your Personal Allowance to your husband, wife or civil partner. This reduces their tax by up to £252 in the tax year (6 April to 5 April the next year).

With Tax-free childcare, you can get up to £500 every 3 months (up to £2,000 a year) for each of your children to help with the costs of childcare. This goes up to £1,000 every 3 months if a child is disabled (up to £4,000 a year). You can use it to pay for approved childcare, for example, Childminders, nurseries and after-school clubs.

These instant money savings can go towards your bills or food shopping. If you’ve outstanding debts that are costly, use these savings towards paying them down or whatever else you need to pay off. If you are lucky and have no debt, put the money in an emergency fund for future unexpected bills.

4. Save Money at Home

It’s surprising how many people don’t realise they can save money every year by implementing simple new habits when it comes to living. Taking 4-minute showers, for example, saves £70 a year on your water bill. Not filing up the kettle when making a cup of tea for 2 people can save £36 a year in electricity bills.

Energy Money Savings

There are many more money-saving tips from the Energy Savings trust.

5. Give your Spending a break

Challenge yourself and try a spending break where you don’t purchase any non-essential items for a week or even for a month and see how much money you can save.

Start with something small, like not buying a takeout meal for a week or going without making your weekly clothing shopping fix. Once you have established comfort with your new weekly saving habits, challenge yourself to take a monthly spending break. For example, no coffee from Pret can save you over £70 a month if you purchase one coffee a day (if this is too much you can pay for a monthly Pret subscription for £25 and still save without going way out of your comfort zone)

The ultimate money-saving tip is to be flexible with your goals and see how your new challenge can lead to a lifetime of savings.

Small steps- it all adds up

By implementing these five money-saving tips, you can build up a lot of savings over time. It can take a while to see the benefits, but it’s worth it in the long run.

Help us save you hundreds of pounds every year in unwanted subscription payments

Download the ScribePay app on iOS or Android and join people from all over the UK that have taken control of their subscriptions.