Information - NFF

Your Money
Money Saving Ideas
by Liz Dunscombe, Credit Action
We’re all feeling the pinch financially at the moment and, whilst we might feel that we’re victims of global trends
or government policy, there are things we can do to make the most of what money we do have in our pockets.
In July 2011 it cost on average £68.05 to fill a
car with a 50 litre tank with unleaded petrol.
Over a quarter of us say we’re cutting back on
our car usage and this makes sense. Could you
share transport to work or taking the children
to school/clubs – or better still get the children
walking. Plan journeys so that you achieve as
many tasks as possible – a round trip to multiple
venues will probably be cheaper than home and
back to each one individually.
Food shopping takes up about 25% of the net
disposable income of the average family and is
probably the most flexible part of any budget.
Large supermarkets are good for allowing us to
do all our shopping under one roof, however
they also tempt us with lots of ‘bargains’
that we don’t actually need. The key to not
spending more than necessary is to write a
clear list of what you require and then to stick
to it. Shopping for six days and then eating up
all the leftovers on the 7th day can work well
– as can making sure that you’re not hungry
when you shop!
It is also much cheaper to buy basic ingredients
and cook a meal from scratch than it is to use
pre-prepared items. If you have a freezer then
cook double or even treble quantities when you
are able and freeze in appropriate size portions
for your household – then you’ll have ‘ready’
meals when you need them. Take advantage
of special offers (research current ones
online and plan your menus
around them), but
don’t buy more than
you’ll really use of
something just because
it’s cheap – you’ll end up
throwing it away.
The UK base rate has been at a 315 year low of
0.5% since March 2009, however the average
interest rate for credit cards is now 18.7% – this
compares with average credit card rate of 16.6%
in July 2007 (when base rate was 5.75%). So
although it might be a challenge, one very good
way to save money is to clear as much credit card
debt as possible thereby saving yourself significant
amounts of interest.
The most effective way to clear debt is to create a
realistic and sustainable budget for your household
– costing out your necessary expenditure will help
you to evaluate what you have available to repay
debts. Visit www.budgetbuilder.creditaction.
org.uk for an online tool to help you create such
a budget. If you can’t get your budget to balance,
then contact the Consumer Credit Counselling
Service on 0800 138 1111 or www.cccs.co.uk.
A survey has found that being sensible with money
is the number one principle that parents want
to pass onto their children. Personal financial
education has no standard place in our schools
so most teenagers are dependent on what the
adults around them pass on. However children are
not always terribly receptive to parental wisdom,
particularly in their latter teens! Credit Action is
able to give a presentation on handling money,
free of charge, to any sixth form in the UK apart
from in Scotland. In certain areas
we are able to deliver to the 11-16
age group. So if your teenagers are challenging
your advice, why not ask their school to invite us
in (e-mail office@creditaction.org.uk or telephone
0207 380 3390).
In a study two groups of people were sent out
to buy a camera, one had to use cash the other
a credit card. The cash purchasers spent on
average £29.58, the card purchasers £52.67!
Another study showed that over a three month
period those that shopped with cash spent 20
-30% less than those who used a debit or credit
card. So you might want to consider trying to
live with cash only for a while – but do make
sure you’re keeping a record of what you are
spending the money on and monitoring it against
your budget.
We might not be
able to control
the economic
storm, but by
taking positive
action regarding
our own
finances, we can
affect how well we
ride it out!
Editor’s Note:
When driving, remember
another way to save money is
to reduce your speed, therefore
driving more economically. Dropping
your speed does not actually add
much time to your journey, but the
difference in your fuel bill will be
noticeable!
One of the newer
arrivals in terms
of obtaining discount
on products is ‘voucher code’
websites. The codes, if used very
carefully, can save you money, however
all too often you end up falling foul of some
small print condition, not getting the discount
but purchasing the item anyway. Also something
is only a bargain if you would have bought it (or
something very similar) anyway – otherwise it is
an extravagance that you probably can’t afford.
HOMEPORT AUTUMN 2011 35