So it’s January, you’re skint – what better time than the start of the new year to take a fresh look at your finances?
Carrying out a financial detox is a great way to take stock of spending habits, make a few changes to save the pennies and pounds, and hopefully bring bank balances back into the black.
But where do you start?
We’ve come up with some handy hints to help kick-start the process that could see you coining it in in no time.
Give your bank balance a detox
Take a month-long break from non-essential spending. Keep a diary or download an app on your phone and keep track of every penny spent. Write down everything from that pint of milk to impulse purchases – and before you part with cash, ask yourself do you really need it this month? Keeping a record will reduce the inclination to spend.
Get a start on next Christmas
At this time of year Christmas decorations, cards, wrapping paper and even some presents are going cheap. Use the New Year sale to your benefit and stock up now. Why not also set up a bank account to start saving for Christmas 2015? Putting away £50 a month will save you £600 to kick-start next year’s celebrations – and you probably won’t even notice it gone each month.
Sell, sell, sell
Clear out those cupboards and draws and dig out anything you don’t need. Hold a car boot sale and flog all your unwanted stuff, or log on to your local newspaper’s website and upload it to the ‘buy and sell’ section. Buyers will generally be local, meaning you save on postage fees and you won’t be charged commission.
Flog any old mobile phones, unwanted quality clothing, books, CDs, DVDs and computer games via one of the recycling sites online. You could be quids in.
Take on the big boys
If you’re owed cash get it back. Whether you’ve been mis-sold PPI or are owed a rebate, claim it. Double check your home is in the right Council Tax band.
Swap your bank account for one more suited to your needs, and with better interest rates. Switching accounts is easy and most banks do all the hard work for you. Some will even give you cash back on your bills or a sign-up bonus – but make sure there are no hidden monthly fees.
Swap your energy supplier. The difference between the different energy tariffs can be much as £200. Some also offer cash back for swapping.
Always swap your car insurance
Never renew your car insurance automatically. You could be wasting a small fortune. If it’s time to renew spend some time scouring the market for the best results using a comparison website.
Remember to BOGOF
Check out the supermarkets for their Buy One Get One Free offers and stock up on your regular supplies. Also opt for own brands which can sometimes be much cheaper but just as good.
Swap your credit card debt to interest free
If your credit card bill is feeling the weight of Christmas clear it by transferring it on to a 0% balance transfer credit card. Keep this card just for reducing your debt – but don’t use your old one for running up yet more debt.
Dig out those treasures
Track down old savings accounts at mylostaccount.org.uk and lost pensions through the Pensions Advisory Service. Check old bank accounts for interest left behind – it may only be a few pennies but it all counts. Check your outgoing direct debits for any payments you no longer need.
