Top 10 Money Saving Idea

Saturday, February 7, 2009

Top 10 money Saving Idea

Save yourself some money by following the 123money top ten money saving ideas outlined below.

1. Save on your mortgage

If you have a standard variable rate mortgage then you could probably save yourself some money by changing to a discounted variable rate mortgage or to a fixed rate mortgage. This would allow you to reduce the interest rate you are charged by between 1% and 2%.

A 2% saving on a capital and interest repayment mortgage of £150,000 could save you over £2,000. For example if your current rate is 7% over a 25 year term your current annual mortgage bill is £12,722, but if the interest rate were to fall to 5% then the cost of your mortgage would fall to £10,523, saving you £2,199.

As always the best way to save money is to shop around for a new mortgage, and a good way of saving yourself some time and money is to use moneysupermarket as they will allow you to compare over 8,500 mortgages in just a few seconds.

However, before you commit yourself to changing your mortgage lender find out if they will charge you any redemption penalties as these extra costs could more than offset the potential saving.

2. Save on your credit card bills

Some credit card companies charge you around 15% which is an extremely expensive way to borrow money. You should never use a credit card to fund long term debt as you would be cheaper to get a loan at a much cheaper rate of interest. An alternative to this though is to take advantage of 0% interest on balance transfers offered by some credit card companies. Rather than having a £5,000 credit card debt and end up paying around £750 a year you pay nothing, an amazing £750 saving.

Remember once your 0% interest period is up there is nothing to stop you transferring your debt to another credit card offering a 0% deal.

3. Save on your gas and electricity

It is possible to save over £150 a year by switching your gas and electricity to another supplier. The gas and electricity you receive will still be the same, the only difference is the price so why not try a price comparison site such as USwitch and save yourself some money today.

4. Save money by shopping online

Online shops should be able to sell products cheaper than in your high street as they do not have the same overheads. Also, use a price comparison site to find the cheapest supplier of the product you are looking for and order from them or use a cashback rewards site to get an even better deal as they will reward you with cash or vouchers as a rewards for shopping through them.

5. Save money in your highstreet

If you do not like the idea of shopping online you can also save money in your highstreet by joining your supermarket’s reward scheme if they have. You should also cut out and use any money off coupons, use online websites such as trollydolly or even have them e-mailed to you by fixtureferrets.

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6. Save money on your savings

The banks and building societies regularly try to win custom by having a headline grabbing interest rate on their savings accounts for short periods of time and then they slowly start to reduce these rates so make sure your saving are earning a decent rate of interest.

7. Save on travel costs

You could save money and get some exercise by walking or cycling places rather than taking the car. If you do have to take the car why not team up with friends and neighbours and car share.

8. Save on cigarettes

Give up smoking and stop burning your money. Visit Quit for advice on giving up.

9. Save on designer fashions

Designer outlet villages allow you to buy designer clothes and other items at significantly reduced prices.

10. Save on your lunch

Why not make your own sandwiches for lunch and save yourself buying a pre-packed sandwich.

Money saving ideas help you save your pennies allowing the pounds to look after themselves.