Planning and maintaining your family's budget can be hard enough without having to cope with the Credit Crunch. To help you through these difficult financial times, we have some top tips from experts on how you can save your money, and cut back on unnecessary spending.
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With money experts predicting bleak times ahead for the British economy, what can you do to safeguard your family expenses? How might your family budget be affected? We offer some top tips to help you get your family through the credit crunch.
There are a number of reasons why parents may be feeling a little worried about their finances this year and in the year ahead. There is talk of recession and redundancies, and a downward spiral in houses prices.
Then there is the expected upward spiral in home energy costs. Paul Schofield of moneysupermarket.com says gas and electricity prices have increased by around 15 to 20 per cent in 2008.
He predicts a 'wait and see' approach from economists in 2008 but adds, for consumers, caution will be the best tactic. So with this in mind we have a few ideas to help you manage your pennies.
21 tips to beat the Credit Crunch
- Use less water when cooking. Water takes energy and saps your vitamins anyway. Steam your veggies in as little water as possible.
- Use pots and pans with flat bottoms and roughly the same size as the burner to avoid heat escaping (the top of your cooker uses less energy than the oven so use it where you can).
- Use small electric appliances like toasters, slow cookers and vegetable steamers. They use less energy.
- Turn the water off when brushing teeth – teach your children to do likewise. Also, don’t wash dishes under running hot water.
- Vacuum the coils at the back of you fridge. Dust built up makes the fridge get hot and use more energy, as does placing it too close to the wall. Give it space to breathe.
- Buy out of season. Stuff such as coats and boots bought in the summer are a lot cheaper.
- Arrange to have all your bills and savings paid or transferred automatically by direct debit. This will reduce money handling and so you wont be so tempted to spend it on things you shouldn’t.
- Look out for money saving coupons in newspapers, magazines or promoted in-store or online.
- Buy in bulk – this will cut trips to the shops (and therefore temptation) and will often save up to 50 per cent on unit cost.
- But to prevent your family using more than they normally do just because it is there, store the bulk away from eye view and top up smaller bottles, jars and containers as needed.
- Take advantage of discounts on any subscription services you use, such as magazine or newspapers.
- Stop late fees. Put the counterfoil portion for each bill in an envelope, address it, stamp it and write the due date on the top lefthand corner. File them chronologically and review which need to be paid once week. Post what needs to be mailed at least week ahead.
- Stop spending money you don’t have. That way your income will never exceed your outgoings – which will make you feel more in control.
- Statistics say you will spend up to 30 per cent more in a shop if you use your credit card. Use cash instead (and limit your card to real emergencies only). You will be a whole lot more cautious.
- Keep a money diary and list every expenditure, no matter how small. You will know where your money goes and this will help you spend more discriminately.
- Stop the high cost of eating out everyday. Take a set amount, say £25, in your purse on Monday; if it’s gone by Friday then take in a pack lunch.
- Have trouble saying 'no' to a scrounger who never repays? Next time he asks for a loan, say you were just about to ask him for one. That usually sorts the problem.
- Plan major purchases. Research the type of car, holiday, TV or sofa you would like (put a picture on your fridge!). Break down the cost into a monthly sum you can afford to put aside over a period of time. You will not feel deprived by giving something up to get what you want.
- Remember, ‘a penny here, a penny there all adds up in the long run’, so impulse buying even cheap items can still hurt your bank balance. Keep the mantra in mind to kill impulse buying.
- If you find yourself struggling with debt don’t ignore the problem: it won’t go away and the longer you leave it, the worse it gets. Get in touch with your creditors straight away and explain your difficulties. Tackle priority debts first – those which could mean losing your home or having your gas or electricity cut off.
- Don’t give up trying to reach an agreement even if creditors are difficult. If you need help, contact a debt charity such as National Debtline, on 0808 800 4000.
