Want to cut money this year and have a little more to spend on this and that – these tips will show you how to do so.
Change Your Attitude To Your Mortgage
The most expensive thing that you are ever likely to buy is going to be your home. If you are not in the rather privileged position of being able to pay cash for your home, you are going to have to get a mortgage to finance the purchase. When you do this, you have to ensure that you are getting the best mortgage deal.
There are thousands of different mortgage deals that you can choose from, but you need to take the time to read to small print for any hidden catches. If you do this, you can save a lot of money and you need to remember that being loyal to your bank for your mortgage benefits your bank, but it will generally not benefit you.
If possible, you should look at making overpayments on your mortgage because you will be able to clear the debt much faster. If you have a debt of $100,000 at a rate of 6% over 25 years, you will need to make monthly payments of $643 which leaves a total charge for the credit at $93,000.
However, if you overpay by $100 each month, you will be able to clear your loan in 19 years instead which provides you with 6 years of debt-free living. You will also be able to save $25,000 in interest by doing this.
Clear Your Credit Card Debt
When it comes to financial planning, one of the golden rules is that you need to pay off the most expensive debts first. This will be your credit cards because they generally have the highest interest rates.
Credit cards are a black hole for many people because they are an easy pay to pay for things, but if you do not clear the full balance each month the debt will add up. If you do not pay the whole balance, you would actually be better off getting a low-cost loan instead because you will save around $600 over a 5 year period.
Cut The Costs Of Your Fuel Bills
As official inflation calculations generally do not include the price of things that go up, energy companies have the ability to increase bills by up to 10% whenever they feel like it. This is something that they try and do whenever they can.
The average gas and energy bill is believed to be around $1,500 per year which means that for a fifth of a state pension you are getting an incomprehensible bill and shifting blame.
This does not mean that you have to be ripped off. If you have never changed your supplier, you could be saving around $300 a year.
If you have switched before, you will generally be charged around the same amount. If you do not think that your bills are going to fall in the near future, you could fix your bills for a number of years. It is also very easy to switch providers as all you need to do is click your mouse a few times because the new supplier will take care of the formalities. This can also be done with car insurance renewal, just use Moneyexpert.com’s comparison panel.
Consider A Water Meter
Most people take their tap water for granted because it has always been there. The problem is that the company behind your water is there to make a profit and you will be paying them to supply your water. However, if there is no rain, the water companies will have to import water and this will increase the prices.
Calculations suggest that it costs around 2 cents to flush a toilet, but this will rise when your supplier has to import water. This is why you should consider installing a water meter. If you have a large home with few inhabitants, you may be surprised with the amount of money that you will save with this.
Cut Your Phone Bill
When you look at phone bills over the years, you will notice a trend of having to pay more while getting less and less. If you are going to be using a home phone, you need to look around for the best deal and there are many cheap alternatives on the market. You may also want to consider looking at some of the other low-cost alternatives that do not require you to have a phone line.