Every little counts

For many in the post-Christmas period, thoughts often turn to belt-tightening measures; it’s a long way until that January pay-check lands and even after it does, depending on how lavish your Christmas spending was, it may be a few months before finances are back on an even keel. The good news is that cutting back often doesn’t have to be painful; the trick is to start out small. It’s surprising how much all the small expenses – a cappuccino here, a glossy magazine there - can add up. So here are some tips on what small cut backs you can make to help you obtain a healthier bank balance:

• Take a packed lunch. If you’re buying your lunch everyday the spending can soon add up to something like £25 a week if not more. It may not seem like much in the overall scheme of things but over a year, that means you’re spending £1200 just on lunch! It’s always cheaper to take a packed lunch instead. The additional health benefits - shop-made products often contain more calories, salt and fat – are another incentive. Be inventive in your approach – a packed lunch doesn’t have to mean a flimsy sandwich. Try home made soups, leftovers and salads to add a bit of variety.
• Ride a bike. Chances are, your travel costs form a significant proportion of your monthly wage. Cars are expensive to run and public transport, albeit cheaper, can be unreliable or simply unable to take you to where you want to go. Comparatively a bike is an incredibly cheap form of transport – there are no insurance or tax costs, servicing is relatively infrequent and cheap. And of course there is the convenience – you can go anywhere at any time for free. Safety may be a concern but the perception that cycling is dangerous is relatively unfounded and local councils often provide cycle training in order to give new cyclists more confidence. Dig that bike out, give it a spruce up, get riding and start saving.
• Change banks. Most people stick with the bank they’ve had since student days but this loyalty isn’t always repaid. It’s always worth shopping around for a better rate of interest; many banks offer competitive rates for savers. For example, Santander offer a two year savings bond with a rate of 3.90%.
• Look out for promotional codes. If you’re making a purchase online, always check first to see whether you can find a promotional code for that particular company. There are lots of websites online which make it even easier to find codes, so you can get that 20% discount with nothing more than the click of a button!