January 7, 2016

7 ways to save money in 2016

1. Open a savings account – If you don’t already have a savings account then 2016 is the year to get one. You don’t have to put away much every month just whatever you can manage. Even if you just save £1 a day – it will add up to a hefty sum by the end of the year… £366 to be exact! 

2. Budget everything – Make a budget and stick to it on everything. Budget how much you can spend on food, clothes, make-up and even going out each month and do not exceed your limit. It may take a couple months to get used to being strict but it’ll be worth it when your bank balance looks good.

3. Don’t ignore your statements – Sounds obvious, but around 6 million Brits don’t always open important bills or financial statements. You might find you’re paying for things you don’t need, use or want anymore such as magazine subscriptions and gym memberships. Checking your statements regularly will highlight which areas of your life you can save the most money.

4. Save by switching –Check what you’re paying for your phone, broadband and energy. It may be worth your while to switch but make sure your getting the best deals by using a comparison site such as this one on MoneyMagpie.com. You can even save an average of £70 a yearby switching your bank account so give it a go.

5. Open a help-to-buy ISA – If you’re saving for a first-time property this year it is essential that you open a help-to-buy ISA. You can earn up to 4% tax-free interest, plus the Government will add 25% on top (up to a maximum £3,000) when you go for the mortgage.

6. Car share on your commute – If you and your colleague both drive to work then why not save money and car share this year? It’s cheaper, warmer and less sweaty than the bus or train and provided that you like your colleague, it’s a great time to get to know each other – the bonus is that you both will cut your commute costs by half.

7. Don’t join the gym– Unless you are starting a strict exercise regimen and plan to be in the gym all day and all night, then don’t sign up for the gym if you’re trying to save money this year. I recommend you buy yourself a £5-10 workout DVD and get fit in front of your TV, buying the DVD will be a onetime purchase so it’s worth it. Alternatively workout for free in the park by walking, running, cycling etc. – whatever suits you best.

Written by Kamal Khurana 

Follow Kamal on Twitter @kkmpx