Maximising Your Savings: Expert Tips on Frugal Living

If you are trying to save money and reduce your debt, look no further. Philip Edwards from Quidable, shared expert tips to help you maximise savings and reduce debt.

Save to Splurge

Are you interested in a new pair of shoes or a three-day weekend getaway? Don’t just shell out the money all at once. Save to splurge. Allocate a fixed amount weekly (perhaps between £100 and £200) until you've amassed enough to treat yourself to your desired purchase or experience.

Be More Mindful When Grocery Shopping

Food spending is one of the most costly expenses for UK households. A few things you can do to reduce the cost of groceries and food include:

• Eating at Home: Of course, the less you spend on dinners and lunches, the more you will save in the long term.

• Setting a Weekly Grocery Budget: Determine how much you want to spend on groceries each week and stick to it.

• Learning When and Where to Shop: Figuring out a routine can help you avoid wasting food or buying more than you need. You can also try several different markets to see which fit your price range.

• Shopping Online to See Your Cart: Adding items to your cart before purchasing will show you exactly how much you will be spending, which is a great way to manage your budget.

Review Your Debts

If you have a loan, credit card, or mortgage, you’re likely to be paying interest, which you may be able to reduce, possibly lowering your monthly repayments in the process.

Credit Card Debt

Take a balance transfer, for example, where you can do a switcharoo and move your outstanding debt from one service provider to another – often on an interest-free basis. If you can pay off the debt in that interest-free period, it’s a great way to stop paying interest (and, over a long period of time, a lot of interest!).

Personal Loans, Overdrafts, and Credit Card Debt

A debt consolidation loan might offer a lower interest rate compared to overdrafts, credit cards, and store cards. Additionally, if you have multiple debts, consolidating them into a single loan can simplify your repayments with a clear plan.

However, while debt consolidation can reduce your monthly repayments, it might result in higher overall interest payments over time.

Cut Fuel Costs

Small adjustments can significantly cut down your fuel expenses. Here are some practical suggestions:

• Look For The Best Prices: Moving to a cheaper petrol station can save you pence per litre.

• Loyalty Card Schemes: A quick way to earn points is to fill up at stations that have loyalty schemes. These schemes allow you to accumulate points and exchange them for discounts.

• Accelerate Gradually: Gentle acceleration minimises power use and reduces the likelihood of heavy braking.

• Lighten Your Load: Remove unnecessary weight from your vehicle.

• Opt for Natural Ventilation: Use your windows instead of air conditioning on hot days.

• Keep Your Tyres Inflated: At least once a month, and before long trips, check your tyre pressures to ensure that they’re inflated to the levels listed on your tyre placard or in your owner’s manual.Look into Your Utility Providers

Look into Your Utility Providers

Comparison sites allow you to check which supplier offers the lowest prices for gas, electricity, broadband and other household expenses.

Even small amounts of savings can add up to quite a lot over a year. If you are switching to a cheaper utility provider, why not put the money you’ve saved each month into your savings account? This can be done automatically through your online banking app, so you don’t ever have to think about it.

Reduce Your Electricity Bill

Look into energy-efficient lighting to reduce the cost of your electricity bill. Switching to LED lights from your current incandescent bulbs is a good way to save your electricity and money at the same time.

These are just a few of the perks of switching over to LED lights:

1. Energy Efficiency: Incandescent bulbs consume 10 times more electricity than LED lamps. On the other hand, LED lights are energy-efficient, long-lasting, and produce high-quality light.

2. Longevity: LED bulbs last much longer than incandescent bulbs, meaning fewer (and less expensive) replacements.

3. Quality of light: LED bulbs emit consistent, bright light in any colour temperature the user chooses, from daylight-balanced to warm and cozy.

Spending less and living within your means isn’t about depriving yourself of things you like or locking yourself up in your house forever. It’s about being a smart consumer and knowing when to pull out your wallet. With some mindfulness and responsible spending, you can continue to live a balanced and rewarding lifestyle while also setting yourself up for financial health.